"Ocean Datatokens: From Money Legos to Data Legos
How DeFi Helps Data, and Data Helps DeFi"
New blog post, and a thread👇🏾
1/25
blog.oceanprotocol.com/ocean-datatoke…
How DeFi Helps Data, and Data Helps DeFi"
New blog post, and a thread👇🏾
1/25
blog.oceanprotocol.com/ocean-datatoke…
DeFi tools are referred to as "money legos" for their composability.
Ocean Protocol datatokens (now in beta) allow these DeFi tools to also manipulate data infrastructure, thereby unlocking "data legos".
datatokens * money legos = data legos
2/25
Ocean Protocol datatokens (now in beta) allow these DeFi tools to also manipulate data infrastructure, thereby unlocking "data legos".
datatokens * money legos = data legos
2/25
Let's build up intuition. First: protocols.
You know the story about railroad track widths being the same width as Roman chariots? It's actually true (!)
A standardized width (a protocol) helped *reuse tooling*. E.g. avoiding breaking wagon wheels in rutted roads.
3/25
You know the story about railroad track widths being the same width as Roman chariots? It's actually true (!)
A standardized width (a protocol) helped *reuse tooling*. E.g. avoiding breaking wagon wheels in rutted roads.
3/25
Second: overlay protocols.
Does the scene below look familiar to you? Me neither.
This is how the shipping industry used to work: dockworkers breaking their backs to move one sack at a time.
4/25
Does the scene below look familiar to you? Me neither.
This is how the shipping industry used to work: dockworkers breaking their backs to move one sack at a time.
4/25
Then along came shipping containers.
They're an overlay protocol: they wrap existing infrastructure blocks (trains, tracks, ships) with a standard interface to combine the blocks together better.
They turn logistics infrastructure into "logistics Lego blocks".
5/25
They're an overlay protocol: they wrap existing infrastructure blocks (trains, tracks, ships) with a standard interface to combine the blocks together better.
They turn logistics infrastructure into "logistics Lego blocks".
5/25
Third: repurposing.
In the 1950s, CRT were used for "serious" stuff: radar displays.
Then a sneaky engineer creatively repurposed it to create "Tennis for Two" - the world's first video game!
6/25
In the 1950s, CRT were used for "serious" stuff: radar displays.
Then a sneaky engineer creatively repurposed it to create "Tennis for Two" - the world's first video game!
6/25
Let's discuss the challenge at hand. Data - and related issues - have risen in prominence. FB etc are mining us. Equifax-level hacks are common.
The goal is data sovereignty, at each level: individual > family > company > city-state > nation > region.
7/25
The goal is data sovereignty, at each level: individual > family > company > city-state > nation > region.
7/25
To solve this, we need a decentralized data exchange as a foundation.
And on top, we need apps for:
a. secure data custody / data management
b. data marketplaces
c. data audit trails
d. collective bargaining around data
etc, all while retaining privacy & control.
8/25
And on top, we need apps for:
a. secure data custody / data management
b. data marketplaces
c. data audit trails
d. collective bargaining around data
etc, all while retaining privacy & control.
8/25
We've been building towards this at @oceanprotocol.
It's a huge software effort:
-The foundational data exchange infra
-Plus, building an app for each of (a)(b)(c)(d) etc
So we asked: can we get *sneaky* to accomplish this? E.g. by repurposing, or other tricks? *We can.*
9/25
It's a huge software effort:
-The foundational data exchange infra
-Plus, building an app for each of (a)(b)(c)(d) etc
So we asked: can we get *sneaky* to accomplish this? E.g. by repurposing, or other tricks? *We can.*
9/25
Here's how, in two steps:
Step 1: Turn existing data services into ERC20 *datatokens*, i.e. data assets. That is, datatokens act as an overlay protocol.
Ocean datatokens become the shipping container for data services.
10/25
Step 1: Turn existing data services into ERC20 *datatokens*, i.e. data assets. That is, datatokens act as an overlay protocol.
Ocean datatokens become the shipping container for data services.
10/25
Step 2: Repurpose DeFi tools for use on the data assets, for out-of-the-box apps implementing (a)(b)(c)(d) etc.
-Metamask becomes a data wallet
-Balancer a data exchange
-etc.
CRTs repurposed from radar → video games.
DeFi tools repurposed from money → data economy.
11/25
-Metamask becomes a data wallet
-Balancer a data exchange
-etc.
CRTs repurposed from radar → video games.
DeFi tools repurposed from money → data economy.
11/25
Ocean datatokens are ERC20 tokens to access data services.
Each data service gets its own datatoken.
To access the dataset, send 1.0 datatokens to the data provider. To give access to someone else, send them 1.0 datatokens.
That's it!
12/25
Each data service gets its own datatoken.
To access the dataset, send 1.0 datatokens to the data provider. To give access to someone else, send them 1.0 datatokens.
That's it!
12/25
Holding a datatoken implies the right to access the data.
Data is automatically copyrighted in many jurisdictions. A datatoken can imply a license to use that data.
Alternatively, encrypted data or data behind a firewall can be considered a trade secret.
13/25
Data is automatically copyrighted in many jurisdictions. A datatoken can imply a license to use that data.
Alternatively, encrypted data or data behind a firewall can be considered a trade secret.
13/25
Oracles like @chainlink help get data itself on-chain.
Ocean is complementary, providing tools to on-ramp and off-ramp data *assets*.
The data itself does not need to be on-chain, which allows wider opportunity for leveraging data in DeFi.
14/25
Ocean is complementary, providing tools to on-ramp and off-ramp data *assets*.
The data itself does not need to be on-chain, which allows wider opportunity for leveraging data in DeFi.
14/25
At the smart contract level, Ocean datatokens don't differ. They implement ERC20.
Variants emerge in the semantic interpretation by Ocean libraries run by the data provider.
Variants:
-perpetual, time-bound, vs single use
-static file, streaming, vs compute-to-data
-..
15/25
Variants emerge in the semantic interpretation by Ocean libraries run by the data provider.
Variants:
-perpetual, time-bound, vs single use
-static file, streaming, vs compute-to-data
-..
15/25
With Ocean datatokens, we can *repurpose* crypto wallets as data wallets, for data custody and data management.
Examples:
-Metamask becomes a browser-based data wallet
-Trezor & Ledger become data hardware data wallets
-Gnosis Safe becomes a multi-sig data wallet
16/25
Examples:
-Metamask becomes a browser-based data wallet
-Trezor & Ledger become data hardware data wallets
-Gnosis Safe becomes a multi-sig data wallet
16/25
Existing software could be extended to include data wallets (repurposed crypto wallets).
Examples:
-web browsers, in the vein of Brave
-AI/ML tools like Azure ML Service or Anaconda Cloud
17/25
Examples:
-web browsers, in the vein of Brave
-AI/ML tools like Azure ML Service or Anaconda Cloud
17/25
Ocean datatokens let us repurpose crypto exchanges as data marketplaces / exchanges:
-Balancer, Uniswap, .. as AMM-based data DEXes
-0x, Kyber, .. as order book-based data DEXes
-maybe even Binance, Coinbase, .. as data CEXes?
18/25
-Balancer, Uniswap, .. as AMM-based data DEXes
-0x, Kyber, .. as order book-based data DEXes
-maybe even Binance, Coinbase, .. as data CEXes?
18/25
Data auditability and provenance are goals in data management.
With Ocean datatokens...
-Etherscan becomes an explorer for data audit trails
-CoinGecko and CoinMarketCap style services will give listing information for each datatoken
19/25
With Ocean datatokens...
-Etherscan becomes an explorer for data audit trails
-CoinGecko and CoinMarketCap style services will give listing information for each datatoken
19/25
A "data DAO" can manage datatokens on behalf of its members.
One app is co-ops. From early 1900s, the SWP grouped farmers for clout in negotiating grain prices, marketing, & dist'n.
Similarly, a data co-op could give clout in negotiating data prices, marketing, & distn.
20/25
One app is co-ops. From early 1900s, the SWP grouped farmers for clout in negotiating grain prices, marketing, & dist'n.
Similarly, a data co-op could give clout in negotiating data prices, marketing, & distn.
20/25
More applications of data DAOs:
-Co-manage a single data asset, via a Telegram channel needing >1.0 datatokens to enter, like in KarmaDAO.
-A DAO to manage a datatoken pool's weights, tx fees, etc. Like PieDAO, for data.
-Index funds for data investments, e.g. via Melon.
21/25
-Co-manage a single data asset, via a Telegram channel needing >1.0 datatokens to enter, like in KarmaDAO.
-A DAO to manage a datatoken pool's weights, tx fees, etc. Like PieDAO, for data.
-Index funds for data investments, e.g. via Melon.
21/25
The data economy is 377B€ for Europe alone. (30x DeFi AUM.)
Data as an asset class can be securitized and used as collateral. H/t Bowie👨🎤
Data assets can grow the DeFi pie:
-Collateral in stablecoins, loans
-Data in DEXes increases volume & AUM
-Insurance on data assets
22/25
Data as an asset class can be securitized and used as collateral. H/t Bowie👨🎤
Data assets can grow the DeFi pie:
-Collateral in stablecoins, loans
-Data in DEXes increases volume & AUM
-Insurance on data assets
22/25
Data can improve decision-making in DeFi:
-Yield farming. Improve the auto strategies to maximize APR. Think yearn++.
-Insurance. More accurate models for lower risk.
-Loans. Better predict defaults of under-collateralized loans.
-Arb bots. More data -> higher returns.
23/25
-Yield farming. Improve the auto strategies to maximize APR. Think yearn++.
-Insurance. More accurate models for lower risk.
-Loans. Better predict defaults of under-collateralized loans.
-Arb bots. More data -> higher returns.
23/25
We've built datatokens for Ocean V3. 🏗️🏗️🏗️
The code is in private beta with teams building on Ocean, and is undergoing a security audit.
In coming weeks we will open up the GitHub repositories, and release updated documentation.
24/25
The code is in private beta with teams building on Ocean, and is undergoing a security audit.
In coming weeks we will open up the GitHub repositories, and release updated documentation.
24/25
.@oceanprotocol datatokens are an overlay protocol to help combine pieces of data infrastructure.
We can repurpose DeFi to immediately enable data wallets, data exchanges, and more.
Data becomes a new asset class to grow the DeFi pie. Data can optimize returns in DeFi.
25/25
We can repurpose DeFi to immediately enable data wallets, data exchanges, and more.
Data becomes a new asset class to grow the DeFi pie. Data can optimize returns in DeFi.
25/25
