Digital conglomerates such as Facebook and Google have generated hundreds of millions, if not billions, of dollars by leveraging individuals’ online data with Marketers for exorbitant fees. As a result, today’s Marketers are facing a data privacy backlash…created by those same behemoths…that impacts the Marketer’s ability to reach specific targets with specific offers. And it’s a privacy backlash that is driving U.S. state legislatures to enact data privacy protection laws. In addition, Marketers understand that the intermediaries are exploiting them by charging excessive fees for data and advertisements that end up reaching a wrong audience. Meanwhile, Consumers understand that their personal information and online data are at risk when these middlemen aggregate and sell such data without each Consumer’s case-by-case approval. What today’s US Consumers do not know is that they may be sacrificing approximately $2500/user ($890B total in the US alone) of data value to these companies (see the analysis later in this paper).

CYDigital and Its Value Proposition

To enable Marketers derive more value from their data and uncover revenue opportunities, CYDigital is creating a blockchain-based, decentralized application that permits Marketers to create deep and lasting relationships with Consumers built on trust, transparency and cryptography. Solutions emanating from this approach include “moment of truth” advertising, “just in time” advertising, zero party data capture, referral and loyalty programs, privacy programs, and services that deploy cryptocurrency.

This approach is based on a novel yet simple concept: providing a means for the Consumer to capture, own, and selectively share and derive value from the data generated from all their offline and online activities. On a permission-basis only, Consumers are incentivized to make their data anonymously available to Marketers so that Marketers can reach very specific individuals with very specific and relevant offers.

As a result, Marketers will not only uncover new opportunities, but will also be in complete alignment with global, domestic and local privacy regulations, as well as remove digital conglomerates as middlemen to reach Consumers.

This graphic outlines the Marketer, Consumer and CYDigital process:

To facilitate the selective exchange of Consumers’ online data with Marketers, CYDigital is creating a cryptocurrency token (the “CYDT Token” or “CYDT” ) to function within the CYDigital Platform as a basis to reward Consumers and to be used by Marketers as a means to compensate CYDigital for use of its platform. Within CYDigital and its initial service called the Marketer Offer System (“MOS”), Marketers will be able to:

• Receive CYDT when Consumers exchange their CYDT for the Marketers’ rewards or discounts;
• Use their CYDT to reward targeted Consumers for granting them access to their Digital Pictures;
• Use their CYDT to reward targeted Consumers for engaging with their offers; and
• Buy CYDT from CYDigital when they need a certain amount of additional CYDT to access Consumers to present their offers.

Consumers will be able to:

• Earn CYDT by signing up for a Consumer account on the CYDigital Platform;
• Earn CYDT by allowing the CYDigital Platform to track and store their online-generated data;
• Earn CYDT when referred friends and family sign up for the CYDigital Platform; Receive CYDT when they selectively share the Digital Picture created by their online data with Marketers;
• Receive CYDT by engaging with Marketers’ offers; Use their CYDT to access rewards and discounts offered by Marketers;
• and Buy CYDT from CYDigital when they need a certain amount of additional CYDT to access a desired reward or discount offered by a Marketer.

Overview of the CYDigital Platform’s Mechanics

The CYDigital Platform will operate, in part, via a decentralized application (a “DApp”), available via both a mobile app and a website. Consumers will be able to sign up for accounts on the mobile app or the website and will be able to input preliminary demographic data upon account sign-up. This preliminary demographic data will create a baseline Digital Picture of each Consumer.

The DApp will also include a plug-in, browser extension that Consumers will be able to toggle on or off, such that Consumers can enable or disable the DApp’s tracking of their online activity. When a Consumer toggles the browser extension’s tracking “on,” the DApp will track the Consumer’s online activity and create a more nuanced Digital Picture of the Consumer, which is stored in the DApp’s secure data vault. Consumers will be able to view and exclude certain previously-tracked data from their Digital Pictures on an ongoing basis. Within this infrastructure, Consumers will be able to selectively share their Digital Pictures with Marketers for the Marketers’ market analysis or advertising purposes.

If a Consumer opts in to receive opportunities to share his or her Digital Picture with Marketers, the decentralized analysis layer in the Data Vault will aggregate high-level demographic and interest-related information from the Consumer’s Digital Picture. Marketers will be able to request reports generated by the Vault Analysis Layer to identify the subset of Consumers that are likely interested in the Marketer’s product or service. Once a Marketer has identified this targeted subset, the Marketer can issue an offer to the subset, in which the Marketer offers CYDT to the Consumers who agree to receive advertisements and/or offers.

As a result of these Digital Pictures, Marketers will be able to:

• Better understand and cater to their target market, resulting in deeper and longer lasting relationships;
• Determine the best way to tailor offers to their targeted Consumers;
• Create “Just in Time Offers” or “Moment-of-Truth Offers” (“MOT”) in which they offer CYDT to Consumers to engage with their advertisements, where the ads pop-up via the targeted Consumers’ browser extensions;
• Determine how to structure and deliver “Super Offers,” which are discounted offers for their products or services, to attract the targeted Consumers to their brand, and;
• Be in a position to execute on additional solutions that take advantage of blockchain benefits, e.g., data privacy programs, loyalty programs, etc.

CYDigital expects that Marketers will adopt our philosophy of shared value, respect for Consumers’ time and attention, noninvasive communications with Consumers, and a Consumer’s right to own their data.