Smart Contract System for Privacy-Compliant User Engagement
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Solution Overview
Problem
Current systems for managing user privacy and consent across the internet and digital interfaces are inefficient and lack standardization, leading to outdated and inaccurate audience data, which affects advertising effectiveness and user trust, with conventional methods violating privacy rules and failing to provide transparent, scalable, and verified identity solutions.
Innovation Solution
A smart contract system using non-fungible tokens (NFTs) and public/private ledgers for managing user engagement, enabling centralized consent management, identity verification, and data monetization, allowing users to control their privacy settings and receive compensation for data usage, while providing accurate and targeted advertising.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If conventional tracking methods (cookies, device identifiers) are used to manage user engagement, then advertising effectiveness is improved, but user privacy protection deteriorates
Solution Approach 1:
The patent introduces a privacy layer with a trusted third-party intermediary that mediates between advertisers and users. This intermediary verifies user consent and manages anonymous identifiers without exposing personal information, enabling effective advertising while protecting user privacy through a trusted mediation mechanism.
Solution Approach 2:
The system creates anonymous copies of user identifiers that can be used for tracking and advertising purposes without revealing the user's true identity. These anonymous identifiers serve as functional copies that maintain advertising effectiveness while decoupling the tracking mechanism from personal information exposure.
2Reliability
If centralized consent management is implemented, then privacy compliance is improved, but system complexity increases
Solution Approach 1:
A trusted third-party intermediary is introduced to manage consent verification and identifier validation. This intermediary handles the complex compliance logic centrally, ensuring privacy regulations are met while offloading complexity from individual advertising platforms and providing standardized compliance mechanisms.
Solution Approach 2:
The patent creates a universal consent management framework that can be applied across multiple advertising platforms and industries. The standardized identifier system and consent verification process provide multi-functional capabilities that simplify implementation across diverse systems while maintaining compliance.
3Reliability
If anonymous identifiers are used instead of personal data, then user trust is improved, but data accuracy for targeting deteriorates
Solution Approach 1:
The system uses anonymous identifiers as functional copies that preserve the statistical and behavioral properties needed for accurate audience targeting without containing personally identifiable information. These copied identifiers maintain data utility for advertising while eliminating privacy risks associated with personal data.
Solution Approach 2:
The patent transforms personal data parameters into anonymous identifier parameters through a trusted intermediary. This parameter transformation maintains the essential characteristics needed for accurate audience segmentation and targeting while changing the form of data to eliminate privacy exposure and build user trust.
4Ease of operation
If multiple privacy policies are implemented across different websites, then user consent control is improved, but ease of operation deteriorates
Solution Approach 1:
The patent establishes a universal consent management system where a single user action sets privacy preferences across multiple websites and platforms. The standardized identifier and consent framework provides multi-functional coverage, allowing users to manage their privacy settings once and have them applied universally across different advertising ecosystems.
Solution Approach 2:
The system merges multiple separate consent management mechanisms into a single unified framework. By combining consent verification, identifier management, and privacy preferences into one integrated system through a trusted intermediary, the patent eliminates the need for users to navigate multiple separate privacy policies while maintaining comprehensive consent control.
Data Source
AI summary
A computer-implemented method for presenting advertisements based on user data is disclosed. The method may comprise extracting a mobile phone number associated with an internet user; generating an anonymous and unique identifier for the user based on the mobile phone number, wherein the identifier complies with a privacy rule; analyzing the user's behavior and/or interests to assign behavioral attributes to the identifier; receiving an input to select an advertiser based on a category of the advertisement; transmitting the identifier to the advertiser to generate an advertisement for the user based on the identifier; and receiving the advertisement from the advertiser and presenting the advertisement to the user.