One of the issues that today's internet users face is determining how to secure their privacy and personal data effectively. We live in a time where every organization, from small businesses to giant corporations, wants access to this information. Therefore, the Ocean Protocol (OCEAN) was created to provide data owners control, and consumers access to data in the most ethical way possible.
Ocean Protocol
Ocean Protocol's objective is to unleash data, share wealth and power, remain ethical and lawful, and be censorship-resistant and trustless. These objectives are critical to its overarching goal of disseminating the benefits of AI by enabling everyone to access and monetize data.
By staking their OCEAN tokens in a liquidity pool, OCEAN holders may curate data. This allows them to collect fees but also exposes them to the danger of temporary loss and rug pulls. Datatokens serve as a link between the data sector and DeFi. They may be kept in crypto wallets, exchanged on crypto exchanges, transferred to a DAO, and used to do other DeFi transactions because they are ERC-20 tokens.
Ocean Protocol is a crypto on-ramp for data services that enable data to be valued. It was founded in 2017 and connects data suppliers and customers via blockchain technology. It is an Ethereum (ETH)-based protocol that enables data owners to monetize their data while allowing consumers to access it by paying for it.
The protocol does this by using data tokens, which the user needs to gain access to the data sets. For users wishing to publish their data services, these tokens are fungible ERC20 tokens with Ocean smart contracts and libraries. The platform's primary goal is to allow data exchange.
As a result, corporations, researchers, and anybody else needing data may access it without the data owners losing control. It also links individuals who require or cannot keep data with those who have. Those who reveal information are rewarded with the native OCEAN currency in return.
Datatokens connect data assets to blockchain and DeFi solutions. A consumer delivers 1.0 datatokens to a data provider to access a dataset. They may offer someone else access by sending them 1.0 datatokens. When datatokens are posted on the Ocean Market, the publisher can set a fixed price or use automatic price discovery assisted by an automated market maker.
Balancer powers the AMM pools, including the datatoken and OCEAN as liquidity. The price is determined by the ratio of the two tokens' numbers. When the proportion of datatokens in the pool falls, so does their price, and vice versa. As a result, the price of datatokens is automatically changed.
The Ocean Protocol infrastructure and marketplace are built around datatokens. Each dataset and data service on Ocean has its datatoken, a unique ERC-20 token that allows data providers to monetize their data. You acquire access to particular datasets and data services by purchasing a specific datatoken on the Ocean marketplace. To gain access to the data, transmit one datatoken to the appropriate data provider. Datatokens, like other ERC-20 tokens, may be stored in most wallets that accept ERC-20.
By spending datatokens, you may gain access to the data for a specified period or compute-to-data access, which allows you to execute compute jobs on the dataset – a standard method of training AI models.