BitClave raised nearly $15 million in its pre-sale, positioning itself as a privacy-focused alternative to Google and Facebook. The Ethereum-based search engine built transparency into its core functi
BitClave raised nearly $15 million in its pre-sale, positioning itself as a privacy-focused alternative to Google and Facebook. The Ethereum-based search engine built transparency into its core function: user data stays protected, and the platform pays people for engaging with ads.
The problem is straightforward. Google handles millions of searches, and so does Facebook, and both mine that activity for profit. Neither user signed anything giving permission. Last month, Google disclosed in its transparency report that governments requested access to user data 48,000 times in 2017, affecting more than 83,000 accounts. These requests came from law enforcement and intelligence agencies across dozens of countries. Even with encryption in place, the vulnerability persists. Authorities ask the company, and the company hands over the data.
A blockchain operates under different rules. BitClave distributes data across its blockchain instead of storing it in corporate data centers. Without a central repository, there's nothing for governments to request. No single party controls all the information, so no one can comply with a demand to produce it.
BitClave CEO Alex Bessonov described the mechanism. "The BitClave ecosystem has the capability to anonymize information contributed to the blockchain, creating what we refer to as the anonymous activity ledger. Activity anonymization is done in a way that allows only authorized parties to attribute multiple activities to the same customer. For all other parties, the data is not attributable to specific individuals while remaining valuable for statistical and data aggregation purposes," he said.
Control sits at the application layer. Users decide which data gets shared, stored, and accessed. Smart contracts enforce these choices. Bessonov continued, "This gives the customer control over what data is allowed to be created, shared, and accessed, all managed and enforced through the use of blockchain and smart contracts."
The financial component sets BitClave apart. When a user searches for sneakers and sees a relevant ad, the platform compensates them in tokens. The advertiser gets higher conversion rates. Bessonov explained: "The BitClave tokens will compensate users for engaging in advertisements that they find interesting or useful. If a user searches for a new pair of sneakers, for example, they will be presented with advertisements for sneakers from businesses where the user's preferences and the business's target audience match. The user can then engage with each advertisement, earning tokens for their time and the data they choose to share with that business. We're working with our business partners, as well as several online communities, to help spread the word about how our tokens function directly to the people we believe will benefit from the feature."
BitClave will complete its token sale in late October. The company has published how it plans to spend the money. Of the funds raised during the ICO, 38 percent goes to development and maintenance. Another 37 percent funds community building and user acquisition. The team wants to reach critical mass before competitors arrive. Eight percent sits in reserve. Administrative overhead takes 7 percent. Legal and advisory fees account for the remaining 10 percent. Bessonov outlined the allocation: "As for the funds raised during the crowdsale, the majority (38%) will be put towards development and maintenance of our platform. We will also be allocating 37% of our funds towards community development and expanding adoption of our platform, as we want to reach a critical mass of users and businesses in the ecosystem. We have 8% set aside as contingency funding, 7% for covering administrative costs, and 5% each for our advisors and legal expenses."
