Ocean Protocol : Monetizing data within a decentralized ecosystem

Ocean Protocol revolutionizes data exchange on the Ethereum blockchain, offering security and innovation.

Through “datatokens,” it connects supply and demand while preserving data integrity.

It might seem complex at first, but it’s not. Let’s explore how Ocean Protocol works and why it’s a promising project for investment.

What is Ocean Protocol?

Ocean Protocol, built on Ethereum, transforms data exchange with a key element: “datatokens.”

Imagine them as tickets representing the right to access specific datasets.

🔹 Foundations and Goals

The idea is to enable data providers to share their treasures without losing control. So, if you have an interesting database, you can create tickets (= datatokens) to share it while deciding who gets access.

🔹 How It Works

When you share a portion of your data, you create these datatokens. These digitally represented tickets can be exchanged with other users.

For instance, if a researcher wants access to your data, they can trade you $OCEAN (the project’s cryptocurrency used for payment) for your ticket and gain access to your shared data.

🔹 Ocean Market – The Marketplace

Ocean Market is a platform where these tickets are traded. Providers state what they offer, consumers choose what interests them, and tickets (datatokens) facilitate this transaction while preserving data privacy.

🔹 Why It Matters

This changes the game by enabling everyone to control and monetize their data. You have direct power over who can use your information while creating opportunities for those needing access to data for research, analysis, or other purposes.

How does Ocean Protocol work?

The ingenious operation of OCEAN Protocol relies on smart contracts within the Ethereum blockchain, orchestrating a seamless exchange of datatokens among providers, consumers, and marketplaces.

🔹 Key Actors

Three key players drive the system:

1. Providers mint the datatokens,
2. Consumers purchase them,
3. And marketplaces facilitate the transactions.

🔹 Ocean Market – Automated Market Maker (AMM)

Ocean Market stands out with its automated approach using liquidity pools, unlike traditional systems. Providers publish their datatokens with essential details such as title, description, price, and data location URL.

🔹 Minting and Datatoken Exchange

Providers specify the conditions, and when consumers wish to exchange datatokens, the data is decrypted and downloadable. This process ensures complete transparency in accessing datasets.

🔹 Compute-to-Data – Preserved Privacy

Ocean’s Compute-to-Data function (see part 3) facilitates data sharing while preserving confidentiality. Datatokens enable consumers to leverage specific parts of a dataset without compromising user information security.

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Example:

Imagine you purchased a smartwatch a year ago. You’ve gathered data such as your heart rate, the number of steps taken, and calories burned. With Ocean Protocol, you can make this data available for technological innovation and research in exchange for financial compensation.

➮ Simply present your data in the form of an Excel spreadsheet, for example, which you upload to Dropbox or Google Drive. Then, retrieve the document’s URL and follow the instructions to deposit it on Ocean Protocol’s marketplace.

➮ At this stage, the URL providing access to your data will be broken into numerous fragments and placed in a large pool, filled with pieces of URLs, by the protocol, thus preventing unauthorized access. You’ll receive one or more datatokens, which are essentially tickets allowing access to your data.

➮ To exchange your data for financial compensation, you simply wait for a buyer to offer you a sum in project tokens ($OCEAN) in exchange for the access ticket to your data (datatoken).

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Compute-to-Data: Confidentiality and Data Sharing

At the core of OCEAN Protocol, the Compute-to-Data feature stands out as an innovative technology enabling data sharing while preserving user privacy.

🔹 The Fundamental Idea of Compute-to-Data

Imagine having a valuable dataset but not wanting to reveal all its details. With Compute-to-Data, that’s possible. Datatokens (🎟) allow users to leverage specific parts of a dataset without disclosing all the information.

🔹 How It Works

Let’s take an example. If you have a dataset on consumption trends, someone can use datatokens to analyze only certain trends without accessing all the raw data. This opens doors for research and artificial intelligence while respecting privacy.

🔹 Benefits for Providers and Users

Providers retain full control over their datasets. They can sell specific segments tailored to particular use cases while preserving sensitive information. For users, it’s an opportunity to access relevant data portions without compromising privacy. This approach fosters AI development.

https://oceanprotocol.com/learn/compute-to-data

Who Created Ocean Protocol?

Bruce Pon and Trent McConaghy, two prominent figures in the AI and blockchain world, founded this innovative protocol in 2017, with support from the Ocean Protocol Foundation, a non-profit organization based in Singapore, and the @OceanDAO, a decentralized autonomous organization.

🔹 The Founders

➮ Bruce Pon: An international project leader adept at steering a company toward achieving its goals.

➮ Trent McConaghy: He’s the inventor of token engineering science.

Token engineering science? What’s that? It’s literally the science of designing tokens in a distributed ledger. It involves giving tokens real utility.

These are two blockchain and AI experts with a clear vision: democratize data access while preserving ownership of that information.

🔹 Funding and Growth

The Ocean Protocol Foundation raised a total of $26.8 million through multiple funding rounds, unlocking around 160 million tokens. This substantial sum reflects the commitment to OCEAN Protocol’s development and expansion.

Ocean Protocol’s Value Proposition

🔹 Primary Use Case: Datatoken Exchange

$OCEAN serves as the currency for exchanging datatokens, allowing users to buy and sell these digital tickets representing access to specific datasets.

🔹 Participation in Governance

$OCEAN holders can vote on network upgrade proposals, contributing to shaping Ocean’s future. The Ocean DAO thus adds a participatory dimension to the community.

🔹 Staking on Ocean Market

Ocean Market, the automated marketplace, allows staking of $OCEAN. By providing liquidity to the marketplace, providers can earn a share of transaction fees, creating an incentive for network participation and stability.

🔹 Trent and Token Design

As mentioned in part 4, Trent McConaghy, CEO of Ocean Protocol, is the inventor of token design. This implies that the $OCEAN token has real utility in the project, bringing it value, unlike some project tokens that serve only for voting and essentially fundraising.

A good token with good utility = Token value appreciation

Who Would Use Ocean?

The use of OCEAN extends beyond simple financial transactions. This cryptocurrency offers benefits for various actors, whether individuals looking to monetize their data, developers considering building decentralized exchange platforms, or investors seeking promising opportunities.

🔹 Data Monetization

Users can profit from OCEAN if they wish to monetize their datasets. It’s a powerful alternative to centralized models dominated by giants like Amazon, Microsoft, or Google. With OCEAN, everyone has the opportunity to sell and control their own data.

🔹 Access to Crucial Data

For research, AI modeling, or general analysis, OCEAN opens a new door. It provides a path to obtain relevant information in a transparent and secure manner.

🔹 Platform for Developers

Developers may be drawn to the prospect of setting up tokenized data exchange platforms. OCEAN facilitates the creation of these decentralized environments, offering opportunities for innovative solutions in the data exchange domain.

🔹 Investment Opportunities

Investors seeking promising additions to their portfolios may view OCEAN as an interesting opportunity. By believing in the potential of increasing demand in AI and data sharing markets, adding OCEAN can be seen as a futuristic investment strategy.