The world produces tons of data every day, and many people are not aware of the high numbers of data they are releasing on the Internet. In the Ocean Protocol whitepaper, the authors estimate that 1 zetta-byte (1 trillion gigabytes) of data was released in 2010, while this number multiplied sixteen-fold in 2016

What is OCEAN Protocol?

Ocean Protocol is a crypto on-ramp for data services that unlock the value of data. Founded in 2017, it uses blockchain technology to connect data providers and consumers. Data owners can sell data through the Ocean Market app in order to monetize their data while preserving privacy and control. Consumers, on the other hand, can buy private data that they couldn’t previously access.

When data tokens are added to Ocean Market, the publisher can choose a set price or let an automated system determine the price using an automated market maker. This system uses Balancer to create pools of data tokens and OCEAN tokens, which determine the price based on the ratio of tokens in the pool. If there are fewer data tokens in the pool, their price will increase, and if there are more, their price will decrease. This automated system helps to adjust data token prices automatically.

Data tokens bridge the gap between the data industry and DeFi.

As they are ERC-20 tokens, they can be stored in crypto wallets, traded on crypto exchanges, transferred to a decentralized autonomous organization, and used to perform other DeFi operations.

What are Data tokens in Ocean Protocol?

Ocean Protocol data tokens are a form of digital asset that represent ownership of data on the Ocean Protocol platform. These tokens allow data providers to monetize their data by selling access to it while maintaining control over who has permission to use it.

Data tokens can be created for any type of data, whether it is raw data, processed data, or even algorithms. These tokens are ERC-20 compatible and can be traded on decentralized exchanges or used as payment for data services on the Ocean Protocol platform.

By using data tokens, data providers can create new revenue streams from their data and ensure that their data is used in a way that aligns with their values and goals. Data consumers, on the other hand, can access high-quality data sources securely and transparently, knowing that they are purchasing data from trustworthy sources.

Overall, data tokens play a crucial role in the Ocean Protocol ecosystem by enabling the secure and efficient exchange of data while maintaining data privacy and control.

What is Ocean Protocol’s Compute-to-Data feature?

Much of the world’s most valuable datasets are private, such as genomics, health history, and financial records, to name a few. Sharing these types of data outside of Ocean Protocol’s decentralized infrastructure is extremely risky.

This innovative approach not only protects the sensitive information of the data provider but also allows for valuable insights to be derived and utilized. By maintaining the privacy of the data, the Compute-to-Data feature enables collaboration and sharing of data without compromising confidentiality.

The encrypted data remains secure throughout the process, only accessible to the AI model for analysis and training. This ensures that important data remains protected while still being able to be utilized for research and development purposes. The results generated by the AI model provide valuable information without exposing the raw data, striking a balance between privacy and innovation.

In a world where data privacy is paramount, the Compute-to-Data feature offers a practical solution for utilizing sensitive information in a secure and ethical manner. By safeguarding the integrity of data while still allowing for valuable insights to be extracted, this approach sets a new standard for data sharing and collaboration in the digital age.

Is it possible to deposit OCEAN for staking?

One of the key features of Ocean Protocol is the ability for users to stake their tokens in exchange for network rewards.

Staking on the Ocean Protocol platform Data markets operate by utilizing OCEAN staking to facilitate the process of price discovery for data tokens. By leveraging this staking mechanism, data providers have the option to list their data tokens on the open market with dynamic pricing that adjusts based on supply and demand. This automated pricing system, governed by smart contracts, enables seamless and efficient transactions within the data market ecosystem.

With OCEAN staking at the core of the operation, data market participants benefit from a transparent and decentralized approach to determining fair market value for their data assets.

This smart contract checks to see the supply of a pool of token pairs. Let’s say I’m selling 1 MDT (My Data token) for 10 OCEAN tokens. I prepare a pool for this data token — I supply MDT, and a liquidity provider in the data market provides the balance of 10 OCEAN tokens for every 1 MDT.

When I open this market, if my MDT tokens are popular, then the pool will be abundant in OCEAN but not MDT. The smart contract sees how scarce the MDT token is in this particular pool, and will then increase the price of MDT in response.

This mechanism is formerly known as an automated market maker protocol. In this context, “staking” just means depositing OCEAN tokens into a pool as an investment. In a data market, OCEAN stakers will earn passive income from the transactions that happen to and from the pool.

Who is the team behind Ocean Protocol?

Ocean Protocol was created in 2017 by BigChainDB founder, Bruce Pon, and AI expert, Trent McConaghy. The project received a great number of support from world governments, international corporations, academia, and non-governmental organizations.

OCEAN/USDC live price

Conclusion
In the 21st century, data has become the new gold. But unlike physical gold, its true worth lies in its utilization. OCEAN protocol tackles this challenge head-on with its brilliant solutions. By facilitating secure data sharing while empowering ownership, OCEAN unlocks the potential of this digital goldmine. This paves the way for a thriving data economy, where collaboration and innovation can flourish, fueled by the responsible exchange of this precious resource.