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Why Businesses Need Web 3.0 Data Space

2024-11-11 16:10
This article is the second in a trilogy: "1. Economic Impact of Data Space", "2. Why Businesses Need W3DS", and (TBD) "3. How to Roll Out W3DS".
For over a decade, the European Commission has been working to establish a Data Space, committing more than a billion euros to the effort. Initially, the expectation was that businesses would take the lead in implementing it, but this hasn’t materialized. Instead, the key Data Space initiatives – IDSA, Gaia-X, Solid, and SIMPL – have the Commission, not businesses, as their main client. The EC sets the objectives and funds the outcomes.

Businesses, meanwhile, have been largely excluded from the process. When they raise issues like data silos or counterfeit parts control, they’re often told, "This is out of the scope of Data Space". Such a Data Space doesn’t meet business needs.

To be attracted to Data Space, businesses need more than protocols, standards, or data-sharing frameworks. What must be offered are real solutions to pressing business problems – problems that need to be fully "in the scope of Data Space."

Today, we’ll discuss the specific digital challenges businesses need included in Data Space.

The third article of the trilogy will explore how to transition from Web 2.0, which hinders businesses, to a Web 3.0 Data Space.

European Commission Calls on Businesses to Join Data Space

In March 2024, I attended the Data Spaces Symposium near Frankfurt, an annual event organized by IDSA, a leading Data Space project. I was struck by the audience composition: many government officials, European Commission representatives, academics, and researchers – but hardly any business leaders. And the few businesses present weren’t there to invest in Data Space; they were there to secure contracts from the European Commission. For instance, integrating three or four transport platforms in Berlin under a €5 million grant under the label “Data Space.”

For a real, large-scale Data Space rollout – comparable to the Web’s launch 30 years ago – hundreds of billions of euros are needed. Without private sector investment, the European Commission’s €2 billion funding will quickly run out, leaving us only €2 billion poorer.

At another Data Space conference on May 27, 2024, in Brussels, European Commission representative Johan Bodenkamp addressed the audience directly: "We have invested over a billion euros in Data Space, and we expect conference participants (including IDSA, Gaia-X, and Solid) to engage businesses."

Other roundtable participants replied with a familiar refrain: “We just haven’t had the time, and we need more funding, please.” It became clear to everyone in the room – we have a problem.

And, finally, last week (7 Nov 2024) I had a call with two representatives of the Flemish government, who mentioned that in the program document of the newly elected government the term Data Space was erased, because people lost faith in Data Space. This is a very bad sign.

How Can the European Data Space Attract Businesses?

In May 2024, IDSA (the leading developer of Data Space) made a significant effort to engage businesses. For four weeks, special business engagement sessions were held every Monday.

I personally invited a few corporate contacts to these sessions, but they found little appeal in developing protocols and standards for data sharing. For them, data sharing was a priority a decade ago. Today, they face new challenges: data silos, vendor lock-in, and more. Yet, from the European Commission’s perspective, data silos and vendor lock-in remain “out of scope for Data Space.”

With this response, businesses simply walk away.

We need a new approach. Business challenges must be brought "within the scope" of Data Space.

This article is our attempt to define the scope of Data Space which meets the needs of businesses. It is the result of extensive discussions with IDSA, Solid, and a range of businesses and consultants.

What Do We Mean by “Businesses” in This Context?

To clarify, “businesses” here includes nearly all forms of organized human endeavor: from corporations and small enterprises to solo ventures, cultural institutions, commons, entire cities, government bodies, and NFP/NGO organizations.

However, we primarily expect large businesses to invest their resources in developing Data Space. First, because they have the funds to do so; second, because the impact of Data Space is far more significant for large corporations than for smaller enterprises.

Our focus, therefore, is on large corporations, municipalities, and government institutions, which, like corporations, are heavily affected by data silos. What, then, do these key players truly need from Data Space?

What Do Businesses Really Need?

In the spring and summer of 2024, we engaged with a broad range of businesses in the Netherlands and Belgium – from the railway company NS.NL to independent farmers, from Amsterdam’s innovation department to the metallurgy firm IJssel Technologie, and from fintech startups to major cultural heritage platforms like Ex Libris and Axiell. Through direct conversations and our consulting partners, we reached industries spanning manufacturing, agriculture, urban management, cultural heritage, media, education, and financial services.

Our analysis indicates that, in the realm of data management, there are around 15 core requirements common to most businesses, though the emphasis on specific needs varies across domains. We compiled a list to capture these requirements, highlighting domain-specific needs where relevant. While this list might seem like an “unrealistic ideal,” we want to make a very important statement:

All these requirements are within the scope of the Web 3.0 Data Space as promoted by the Post-Platforms Foundation, and each is achievable.

Thus, Data Space specialists must be prepared to address all of these needs. To see how the Post-Platforms Foundation team is meeting these demands, refer to our article on Web 3.0 Data Space here. Here’s an outline (though far from complete) of the requirements businesses have put forward:

  1. Elimination of Data Silos
  2. Removal of Vendor Lock-in
  3. Controlled Access for Partner Collaboration
  4. Open and Controlled IoT Without Vendor Lock-in
  5. Digital ID for Every Employee
  6. Reputation Management for Businesses and Customers
  7. Advanced HR and Learning Education Systems
  8. Intellectual Property Rights Control
  9. Long-Term Data Preservation
  10. Global Unique Persistent Identifiers for People, Organizations, Things, and Digital Assets
  11. Fake Parts Control
  12. Fake News Control
  13. Advanced Payment Systems (e.g., Central Bank Digital Currencies)
  14. Enabling “Commons” for Community-Building Based on Shared Values and Wishes
  15. Accessible and User-Friendly eVoting Systems

Let’s explore each of these requirements in detail and then summarize the insights.

1. Elimination of Data Silos

Stakeholders: Almost every business.

It may not always be visible, but companies suffer far more from the monopoly of modern platforms than the average person. Thirty years ago, when the first information systems appeared, companies dreamed of a unified system that would encompass everything. Instead, they ended up with dozens, then hundreds, and now, in some cases, over 2 000 systems. The most alarming part? This number continues to grow.

From accounting to warehouse management, cafeteria orders to equipment control, third-party platforms now hold nearly all company data. And these systems don’t just appear; they also disappear, often taking the data with them. Imagine if Instagram vanished, taking all your photos, comments, and conversations with it. Companies face this daily.

With thousand systems each containing similar data, companies have no way to ensure which is the latest, most accurate version of a document, blueprint, or employee contact. Different systems often provide conflicting numbers and document versions.

This is the nightmare of corporate data management: hundreds of overlapping data silos.

For instance, during a recent hospital visit, I was asked for my contact information by seven different staff members, each entering it into their own system. Mistakes were inevitable. A doctor might log my test results in system #6 but overlook system #2. Later, another doctor could base decisions on outdated data from system #5. The potential for errors is overwhelming.

So, it’s no surprise that companies aren’t enthusiastic when the European Data Space offers them the IDSA Connector for data sharing. Even if you connect 1 000 systems, you’re left with 1 000 interconnected data silos. This won’t help answer questions like, "Which of these 34 invoices is correct?" – leading to financial losses, employee stress, and economic damage..

So, what companies demand isn’t a network of connected data silos. They need data silos eliminated altogether.

2. Removal of Vendor Lock-in

Stakeholders: Nearly all businesses.

Once a company places its data on a platform or service, switching to another one becomes a daunting and costly endeavor. Moving data requires re-uploading, error-checking, establishing new integrations, and more – all of which add up costs. This lock-in effect encourages platforms to raise prices, knowing that businesses are unlikely to leave.

But the problem extends beyond high costs.

As with many monopolistic services, functionality stagnates. With companies effectively locked in, platforms lose the motivation to innovate, leaving businesses stuck with outdated, less functional systems, which only compounds operational challenges.

What businesses demand is simple: every employee should be able to work with whichever system or platform suits them best – and switch platforms at any time.

3. Controlled Access for Partner Collaboration

Stakeholders: Industrial partners with extensive supplier and customer networks.

When a farmer plants corn, their tractor records data on each seed. This information is valuable not only to the farmer, who can use it for precision farming by applying fertilizer directly to each seed, but also to:

  • The Ministry of Agriculture and subsidy providers, who assess planted acreage
  • Agricultural associations, which track fertilizer use to award BIO certifications
  • Researchers studying how fertilizers affect product quality and human health

Today, the farmer is overwhelmed with reporting requirements for these various entities. They would gladly grant direct access to this data – but on their own terms. Specifically, they want to:

  • Decide who can use the data, on which system, and in what manner
  • Monitor global statistics on data usage across systems
  • Anonymize data when needed

Business requirement: Companies are open to allowing partners to access and update data within their organization using any system of their choice, but they require complete control over who accesses the data, when, and how.

4. Open and Controlled IoT Without Vendor Lock-in

Stakeholders: Nearly all businesses.

Today, most IoT solutions are locked into their manufacturers' ecosystems, creating vendor lock-in and data silos. Universal access to IoT devices, therefore, directly parallels the need to overcome vendor lock-in.

Consider a scenario where a company’s tractor engine fails. Multiple parties should be notified immediately:

  • The service provider
  • The insurance company
  • The equipment supplier
  • Partners affected by the tractor’s downtime (e.g., construction material suppliers)

Each of these parties should be able to use their preferred platforms/services to access information about the engine.

Business requirement: Companies must be able to control any equipment through any system of their choice (including Digital Twins) and grant access to partners, who should have the freedom to use their own systems to monitor and manage this equipment.

5. Digital ID for Every Employee

Stakeholders: Nearly all businesses, including media and cultural heritage sectors.

The remote access of thousands of partners to a company’s resources would be unacceptably risky without the ability to precisely control who has access, when, and to which resources.

To ensure this level of security, every user across all systems must be identifiable, authenticated, and granted unique permissions for accessing partner data. Ideally, each user would operate with a single, universal key for all services.

This requirement is realistic and achievable. We have already discussed both Data Space security and the concept of "One Key for All Services" in several articles.

Importantly, each user would own their digital key, using the same key for both personal and professional life. After all, you don’t carry different passports in your physical life.

Business requirement: Companies need security and transparent control over who accesses data, with clarity on when and how this access occurs.

6. Reputation Management for Businesses and Customers

Stakeholders: Nearly all businesses.

A business’s reliability hinges on the integrity of each component in its ecosystem – from partner organizations and their products to the reliability of equipment and employees.

Businesses need access to this kind of information. For example, when purchasing equipment, they want insights into global usage experiences with similar equipment over past decades. When signing a contract, they want to know if past partners encountered issues with a potential new partner. When hiring a specialist, they want a clear view of that person’s track record on previous projects.

Reputation must be immune to manipulation or deception.

Business requirement: Companies require a trustworthy reputation system built on millions of verified transactions and genuine customer reviews, offering transparent insights into products, services, businesses, and professionals.

7. Advanced HR and LearningEducation Systems

Stakeholders: Nearly all businesses.

Modern companies lose billions due to employee and team inefficiencies. Businesses need a talent management system that can:

  • Reliably verify employee identities
  • Track employee reputation and validated qualifications
  • Analyze satisfaction and motivation levels, suggest career paths, and recommend relevant training courses
  • Assess team compatibility before internal transfers to ensure cohesive team dynamics
  • Balance employee interests with organizational goals to support long-term, sustainable human capital growth

Business requirement: Data Space should provide a comprehensive, privacy-protected understanding of employees, available training, and job opportunities to enable tailored career paths for every team member.

8. Intellectual Property Rights Control

Primary stakeholders: Media, Cultural Heritage

The modern economy relies heavily on property rights for tangible assets, yet we still lack reliable mechanisms to protect intellectual property for photos, documents, music, films, designs, and other digital assets.

The integration of eID for citizens with Data Space and Persistent Identifiers could provide a solution, allowing individuals and companies to secure their work. Anyone should be able to verify the creator, current owner, and licensing terms of any digital asset through their preferred platform.

Business requirement: Reliable IPR protection and provenance, with simple tools for claiming ownership and easy verification.

9. Long-Term Data Preservation

Primary stakeholders: Media, Cultural Heritage

Data preservation is crucial across industries, but it is particularly vital in Cultural Heritage. Museums and similar institutions rely on platforms and services (like Axiell) to archive their collections, yet their lifespan expectations diverge significantly:

  • Platforms typically last 10 to 50 years
  • Museums may endure for centuries, from 100 to 500 years

This creates a recurring need for museums to migrate to new platforms – an arduous and risky process, making data loss almost inevitable over time.

Business requirement: Data must be preserved for centuries. The internet should evolve from a data transmission medium to a data access environment designed to endure across centuries, regardless of platform changes.

10. Global Unique Persistent Identifiers for People, Organizations, Things, and Digital Assets

Stakeholders: Nearly all businesses.

Even if we preserve data for 500 years, we need Persistent Identifiers to access it that remain stable across centuries. Otherwise, it’s pointless to store a photo if, in 40 years, its URL results in a “404 error”.

This need extends well beyond long-term data storage. For example, when a company hires someone named John Smith, it must be able to verify that he is indeed the same John Smith who previously worked at companies A, B, and C.

A doctor I know recently encountered this issue when applying for a VP role at a pharmaceutical company. During the KYC process, an AI mistakenly identified her as a professor of mathematics, not a doctor, costing her the opportunity.

Business requirement: People, companies, objects, and digital assets need Global Unique Persistent Identifiers designed to endure for centuries, ensuring consistent identity across time and platforms.

11. Fake Parts Control

Stakeholders: Manufacturers of physical products

Consider an airplane undergoing turbine blade replacement in a remote location – how can you be certain the new blades are authentic General Electric parts? These blades may carry genuine serial numbers issued by General Electric, making it challenging to spot counterfeits.

The only solution is to compare serial numbers of all blades across engines on all aircrafts worldwide. Such a system can’t be created to serve only one manufacturer; it must operate globally, involving all companies. This Data Space would require Global Unique Persistent Identifiers.

Business requirement: A global system, accessible via any professional platform, is needed to detect fake parts through comprehensive identifier analysis.

12. Fake News Control

Stakeholders: Media and Cultural Heritage

Fake news (or disinformation) has become a critical issue, impacting events such as the war in Ukraine and Trump’s election to the White House.

Many European initiatives propose a seemingly simple solution: “Let’s employ 10 000 specialists to verify every piece of news and tell the public what’s true and what isn’t.” Yet, this approach can be more harmful than the problem itself, essentially legalizing mass censorship with centralized oversight. Imagine if a figure like Putin could influence all 10 000 specialists, shaping news narratives to suit his agenda – creating a system of total news control, ripe for exploitation by any authoritarian leader.

Instead, we need a robust approach to fake news control based on three requirements discussed previously:

  • Complete provenance of news, tracing its origin through all distribution channels
  • Exclusion of (AI/human)bots from news distribution networks, requiring eID verification for all authors
  • Reputation tracking for news authors, assessed by the public rather than a team of 10 000 experts who likely don’t know the authors personally

Additionally, news items should be able to be linked to Persistent Identifiers of other related news/articles/media, forming a network of information that builds a lasting reputation with the public over time.

This framework excludes bots and AI (since they lack eID) and harnesses collective public wisdom, including insights from those familiar with the authors, instead of relying on a centralized authority. Such a system is inherently resistant to corruption.

Media industry requirement: Fake news control must entirely exclude bots and AI, enabling verification of both the identity and reputation of news authors.

13. Advanced Payment Systems (e.g., Central Bank Digital Currencies)

Stakeholders: Central banks, financial services

Citizens and businesses should be able to transfer money globally in any currency at minimal transaction costs. This should include:

  • Direct, bank-free transactions (P2P, similar to cash)
  • Full KYC compliance, without unnecessary friction for law-abiding users

Financial industry requirement: Money transfers must be fast, low-cost, direct (without bank intermediaries), and fully KYC-compliant while respecting user privacy.

We will soon publish an article presenting a solution model from Web 3.0 Data Space.

14. Enabling “Commons” for Community-Building Based on Shared Values and Wishes

Stakeholders: Cities

Cities are more than just buildings and streets – they are complex ecosystems. Within these ecosystems, local “commons,” or communities united by shared projects, are playing an increasingly important role. These projects might include building a community space, redesigning a street, or creating a solar power system.

These commons foster strong, horizontal connections, making communities more resilient in times of crisis. They help transform cities into supportive networks where people know, collaborate with, and support each other.

But how can people be brought together in such commons? This requires understanding shared interests, for instance, knowing that Maria, Tom, and Bernard all want a playground for children in their local park. A Wish List mechanism can facilitate this, allowing people to share their aspirations while AI systems help identify and connect like-minded individuals. We outline this technique in our article here.

City requirement: Cities need a way for citizens to unite around shared goals, ideas, and values, forming self-organized groups with the ability to influence the city’s economy.

The Post-Platforms Foundation team is currently implementing such a project with the city of Amsterdam, with initial results expected by mid-2025.

15. Accessible and User-Friendly eVoting Systems

Stakeholders: Cities and Commons

The complexities of democratic systems can only be managed by listening to all residents – not just every four years but frequently and on a broad range of issues, and also inside Commons. For this, countries and cities need efficient eVoting systems of all kinds, simple and secure.

City requirement: Citizens should have a user-friendly and reliable way to vote on any issue, anytime and in any way.

Is it possible to create a Data Space that fulfills all these needs? Absolutely Yes.

While many Data Space projects argue that such comprehensive functionality is unachievable, several teams, including ours at the Post-Platforms Foundation, believe it’s within reach.

Our solution, Web 3.0 Data Space, is inspired by Tim Berners-Lee’s ideas and integrates with the European Data Space and European Digital ID initiatives. You can read more about this solution in our article on Web 3.0 Data Space here.

What’s Next? – The Rollout!

Indeed, what good is a vision of a better future if we can’t overcome the resistance of current platforms? At first glance, the first two goals – eliminating data silos and vendor lock-in – are unlikely to attract any platform or service provider under today’s model (actually, it is not true).

This is why rollout strategies are as crucial as clearly defined goals. We’ll detail these strategies in the third article of the trilogy, but here’s an outline of the key approaches:

  • Weighing PROs and CONs in the Shift to Data Space The demand for change from a broad coalition – society, businesses, governments, universities, and smaller platforms – vastly outweighs the interests of the few Web 2.0 giants that resist change. Only a few dozen platforms, like Facebook, Booking.com, and SAP, hold a monopoly and resist a shift. The scale of forces driving change is enormous. Note that even non-monopolistic platforms want change, as it offers them new market opportunities.
  • Engaging Businesses The shift from Web 2.0 to Web 3.0 Data Space requires tens of billions of euros. The European Commission alone cannot drive this transformation without support from the business sector. Business involvement is essential – and with their engagement, they can motivate platforms to adapt.
  • Incentivizing Platforms to Join There are several scenarios in which platforms would actively support the transition to Data Space. These scenarios offer platforms clear benefits: free access to extensive data, full delegation of identity management and security to the Data Space infrastructure, and new expansion opportunities. For example, cultural heritage platforms are motivated to join Data Space because it provides long-term data preservation, a solution they currently lack.
  • Change Management For instance, the Post-Platforms Foundation has already started implementing Web 3.0 Data Space within the Amsterdam Commons project. We are also exploring projects in agriculture and cultural heritage in the Netherlands and Belgium. Success in any of these initiatives will provide the springboard for Web 3.0 Data Space.

Conclusion

This article is the second in our “economic trilogy.”

Data Space stands as Europe’s most ambitious digital project, with the potential to boost GDP by several percentage points, as outlined in our previous article on the economic impact of Data Space.

However, this potential can only be realized if businesses are engaged in the project. To achieve this, we must clearly convey the benefits Data Space offers to businesses, which is the focus of this article.

Once businesses see the purpose and value, the next step is simply how to implement it – and that’s the topic of our upcoming articles.
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