Previously we’ve discussed what triggers the necessity of setting up data trusts. In this article, we’ll hover over the concept and probable benefits of a data trust.
What is a data trust?
A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. In layman’s terms, a trust fund holds your assets for you, the beneficiary, and manages various aspects of that asset, providing a range of benefits. Now, data trust is a trust where the asset is data.
Historically, trusts have been used in law to hold and make decisions about assets such as property or investments. A data trust takes this concept but applies it to data. It is a legal structure that provides independent stewardship of some data to benefit a group of organizations or people. It is a fiduciary relationship between a board of trustees in control and the beneficiaries of a trust. The board of trustees is responsible for the privacy, security, and sharing aspects of the data they hold.
Benefits of a data trust
A data trust is usually set up for a specific kind or specific content of data. The trustee board is knowledgeable about sharing this particular kind of data and where a third party might try to violate privacy rules. So, with this data that they hold, if any third-party organization or company asks for that data, they’ll have to go through the trust. This leads to a handful of benefits.
Decision Fatigue eliminated
Giving you a voice
Immediate termination of data sharing on suspicious activity
The trustee board can immediately stop sharing data with some company if they detect any fishy business going on. In a typical case, you may have sent a legal notice to the company, and meanwhile, they would continue getting the data anyway.
One of the greatest barriers to adopting and scaling AI applications is the scarcity of varied, high-quality raw data. To overcome it, firms need to share their data. But the many regulatory restrictions and ethical issues surrounding data privacy pose a major obstacle to doing this. A novel solution that my firm is piloting that could solve this problem is a data trust.
There’s a lot more to all the issues than meets the eye among these moral and legal grounds of data sharing, which often seems shaky. The recent phone-call expose of a reputed Islamic figure in Bangladesh has raised similar ethical controversies and dilemmas. The question is: will “setting up data trusts and proper policies and exposure boundaries” put an end to these dilemmas? Well, certainly not. But that could be a start.
Loopholes in policies will continue to exist, and so will be the attempts to patch up those faulty outcomes with better ideas and policies. And data trust is undoubtedly on the positive side in this conflict, that is, ensuring data privacy for all.
Check out our previous article where we discussed the necessities and cases where data trusts could help.
Contributor: Istiaq Bin Salam Siaam