Ocean Protocol
Ethereum Crypto Networks

What is Ocean Protocol? How Does Ocean Work?

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Without any doubt, Data is the new oil. In today’s digital world, data has become one of the most valuable commodities. Big organizations understand this fact and they’re consistently taking advantage of it. But the individuals are just giving away this valuable asset without getting enough benefit from it.

Currently, the data is stored in centralized storage systems. And hackers can easily access that data after getting into the network of the centralized authority. Different blockchain protocols are trying to overcome this problem by introducing centralized solutions.

Ocean Protocol is one of the leading names in this category that can truly protect users’ data while allowing them to monetize it if they want.

What is Ocean Protocol?

Ocean Protocol is an Ethereum based decentralized network that incorporates secure, privacy-preserving technologies to unleash the value of data. It’s a data exchange that uses the model of decentralized exchanges to allow users to trade the data. The platform enables users to tokenize the data so they may exchange it on the Ocean Marketplace.

The tokens are recognized as “Datatokens” within the platform. The users can also provide storage space to others who don’t have enough resources to store the data. It means that businesses no longer need to maintain expensive data centers to store the users’ data. Organizations and researchers can easily access their required data whenever they want.

Ocean Protocol is designed to provide a trustless and censorship-resistant environment to the users where everyone can access and monetize data.

Understanding Important Features of Ocean Protocol

  • Web 3.0 Development – Web 3.0 is still in its early stages and Ocean Protocol is one of the most efficient platforms that can pave the way for its consistent growth. Ocean Protocol will provide enough resources for businesses that are willing to participate in the web 3.0 space.
  • Data Tokenization – Ocean Protocol enables users to create fungible tokens of their data so the buyers can easily access their desired data whenever they want.
  • Blockchain Data Industry Leader – There are only a few blockchain projects that are facilitating the data economy. Thus, Ocean Protocol is one of the industry leaders as it enables the exchange of data among multiple users.
  • Ocean Marketplace – As it’s mentioned above, Ocean Protocol is designed on the model of a decentralized exchange. Therefore, it uses an automated market maker (AMM) to automatically determine the price of data tokens. The users can add their data to an existing pool or they can create a new one if needed.
  • Bigger Collaborations – After observing the growth potential of Ocean Protocol, many reputable organizations like BMW and Gaia-X have collaborated with this project. Ocean team is also in talks with different governments to spread its services among various sectors.

Ocean Protocol Brief History

Ocean Protocol was introduced by Trent McConaghy, an AI researcher, and Bruce Pon in 2017. McConaghy already had some experience in the blockchain database industry as he founded BigChainDB previously. OceanDAO is a decentralized autonomous organization responsible for the continuous growth of the project.

Ocean Protocol has a strong team of experts in different areas including business, big data, blockchain, Artificial Intelligence, and more. The Ocean Foundation released around 160 million OCEAN tokens through several rounds of token offerings. And they eventually raised around $26.8 million through these rounds.

Over the years, Ocean Protocol has gained more than 3,000 contributors in 100 countries.

How Does Ocean Protocol Work?

Ocean Protocol incorporates three main components to facilitate the smooth and secure exchange of data tokens through smart contracts.

  • Providers – Providers are the data owners who create new datatokens and sell the rights to access that data within the Ocean marketplace.
  • Consumers – As the name suggests, these users purchase datatokens from Providers to access different data sets.
  • Marketplace – Ocean Protocol has designed its own marketplace to facilitate secure transactions between Consumers and Providers.

Ocean Protocol Data Marketplaces

Ocean Protocol enables users to publish data on the marketplace and monetize it according to their preferences. The publishers can eight choose a fixed price for their datasets or they can choose to automatically adjust the price with Balancer Automated Market Maker. The users are even allowed to launch their own data marketplaces.

The users can create a pool of their datatokens with OCEAN. The price of the tokens will be determined depending on the quantity.

Compute-to-Data

Compute-to-data is a decentralized exchange where users can trade private data without worrying about privacy. The data buyers can use this data for AI modeling, market insights, analytics, and more. It also enables users to generate passive income by monetizing their data.

AI practitioners and data scientists can easily access this data to develop several features of their upcoming projects. In fact, AI practitioners can now publish algorithms exactly according to the needs of the customers without affecting their privacy.

OceanDAO

OceanDAO is a decentralized autonomous organization where users can stake their OCEAN tokens to participate in the platform’s governance. The users can vote on several proposals about whether to fund a particular community project or not. In order to ensure the long-term sustainability of the platform, the team has dedicated 51% of the OCEAN token’s supply to OceanDAO.

Ocean Protocol Tokenomics

OCEAN is the native token of Ocean Protocol that is used to pay transaction fees. The users can also stake OCEAN tokens to participate in the network’s governance. With a circulating supply of 613 million tokens, OCEAN has a market cap of $237 million. It has a total supply of 1.41 billion tokens that will be released over time and 51% of the total supply will go to OceanDAO for the platform’s consistent growth.

Conclusion

Ocean Protocol is a decentralized data exchange where users can buy and sell private data. This network is primarily designed for data scientists, AI practitioners, and other researchers who can’t access users’ private data due to several restrictions. But it also ensures data privacy so that the users can confidently share their data.

If you need more information about how Ocean Protocol works, feel free to get in touch with us.