The next-generation of the Web world will revolve around individual data and the way that information is used by technology companies, LinkedIn (News - Alert) founder Reid Hoffman suggested on Wednesday.

While on stage at the Web 2.0 Expo in San Francisco, Hoffman (News - Alert) told Liz Gannes of AllThingsD that data may not define the next era of the Internet, but it will be the platform that drives "Web 3.0."

Hoffman also gave his opinion on the manner in which implicit consumer data should be handled by Internet companies, which are often criticized for violating the trust of their users.

"Good Internet companies do not ambush their users," Hoffman said of the data collection policies of some of today's Web powers. “That’s one of the principles of data goodness."

LinkedIn's chairman told Gannes that data collection is not a one-way street. Companies will need to offer a “specific and valuable" benefit to users when they ask for explicit or implicit data. Hoffman referenced Mint.com's business model, which asks users for their full financial history in return for the ability to track their purchases and find ways to save money.

"As a general principle, you should only ask for data when you think you can provide a value proposition for users," he said.

Hoffman also noted that the collection and use of location-based data is a major concern, according to PC Magazine. "Trading around a user's location – you have to be really careful," he added.

Although Hoffman didn't mention them by name, Facebook (News - Alert) and Google are the two Web giants that receive the most criticism for their data collection and privacy policies. Earlier this week, Google agreed to a settlement with the Federal Trade Commission over charges that it used "deceptive tactics" and violated its own privacy policy during the rollout of its Buzz social networking service.

Beecher Tuttle is a TMCnet contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.

Edited by Janice McDuffee