The cryptocurrency industry has changed radically over the years, with tools developing new protocols designed to explore previously unknown horizons.
Data has long been at the forefront of blockchain protocols, but now, with the advent of narratives such as non-fungible tokens, decentralized finance (DeFi), as well as the recently emerging concept of Web 3.0, it has taken a leap forward.
ONDA is the latest product release of Ocean Protocol, a decentralized data marketplace that connects existing DeFi tools, token standards, and smart contracts across multiple blockchain networks, such as Ethereum, Polkadot’s Moonbeam, or Polygon. Simply put, Ocean Protocol converts OANDA Marketplace data into an investable crypto asset class. It is important to highlight that the marketplace is not just another purely speculative DeFi marketplace that offers an unrealistic yield to its participants. It was carefully designed to reward usefulness and generate real world value by ensuring a balanced foundation of data consumption and speculation.
Why is data consumption valuable?
In our digital age, data is one of the most valuable resources in the world. Technologies like artificial intelligence depend on the availability of large amounts of data to be successful. However, the data is either exploited by Web 2.0 corporations or simply remains locked because companies are too afraid to publish it.
Ocean Protocol’s data marketplace aims to encourage data owners to take back control of their data and monetize it using blockchain technology. In line with Ocean Protocol’s vision, their technology makes data an asset class that can be exchanged on open-source data marketplaces. This could help data consumers, data scientists and independent researchers access more quality data, allowing them to innovate, solve global challenges, and generate economic value.
Ocean Protocol’s smart contracts enable data owners to monetize their data by making it accessible to data buyers looking for datasets on the Internet.
How can ONDA Marketplace Web 3.0 kick-start the data economy?
The name ONDA was voted in favor of Ocean Protocol’s community, a diverse and engaged audience of data scientists, data industry leaders, and crypto enthusiasts. ONDA simply means ‘wave’. And that’s what Ocean Protocol wants to open up to — a utility for crypto so powerful that it could kickstart a narrative known to Ocean’s proponents as the “Web 3.0 data economy.”
Ocean Protocol deployed existing blockchain tools and combined them with customized smart-contracts to execute their vision. ONDA allows data owners to mold NFTs that represent the exclusive licensing right of their data. Ocean calls these ‘DataNFTs’ a transferable license to distribute and commercialize the underlying datasets represented by the NFTs.
The owner of the DataNFT can then launch a so-called ‘Initial Data Offering’ on the ONDA Marketplace. Similar to Initial Coin Offerings [ICO], DataNFT owners can exchange the ERC20 datatoken on the OANDA Marketplace, which provides a simple website interface to easily complete the process of tokenizing the data. All of this is achieved using the Ocean Token, the native token of the Ocean Protocol that serves as the currency for the Web 3.0 data economy.
In a nutshell, Initial Data Offerings make up DataTokens, which represent data sub-licenses with great potential and utility:
- receiving data: Data consumers can spend DataTokens to access the underlying dataset. This data generates revenue for the owner.
- datafi: DataTokens can be used for DeFi activities, such as providing liquidity, data lending or borrowing.
- Data Speculation and Evaluation: DataToken is also an investment vehicle traded by speculators like any other cryptocurrency. It helps to curate and value the underlying dataset.
- Data yield farming: Ocean Protocol is soon to launch the Yield Farming Program, which will reward speculators who bet on DataTokens being consumed by data buyers. Therefore, the ocean rewards behavior that also drives real-world economic value with the help of the underlying data.
Ocean Protocol’s core team redefines existing blockchain tools and provides an innovative approach to making data an asset class with the help of its ONDA V4 Marketplace. Ocean Protocol has been honored as a World Economic Forum Technology Pioneer in 2021 and is associated with a number of institutions that have already forked their technology to create their own data marketplaces, such as those by Mercedes Benz Ecentric. Furthermore, collaborations with Chainlink and other well-known projects laid the foundation for kickstarting the Web 3.0 data narrative.
Compared to previous versions, the recently released Onda Marketplace offers several benefits for its participants, such as protection against temporary loss and rig-pull, single-sided staking, and utility-based yield farming rewards. ONDA has been carefully crafted to provide the best DeFi experience in data exchange.
If you would like to learn more about the Ocean Protocol ODA Marketplace, the Ocean Protocol official website has more information and users can also participate in the ODA tutorials provided on Data Whale’s website.
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