5 October 2020
It’s the last quarter for 2020 and we have already witnessed the growing tech domination in the global economy. The Coronavirus pandemic provided additional fuel for tech companies to outgrow its peers and set new trends for the future.
However, at the core of all tech dominance is the most important fuel – ‘Data’. Data is the crude of the internet economy and the strongest currency for all digital platforms. The challenge is how organizations can access quality data in a manner where user privacy is protected and the data owner does not lose control of their data (i.e. it never leaves their premises).
The good news is that blockchain and distributed ledger technology (DLT) have empowered users to get better control over their data and privacy. The Ocean Protocol is one such tokenized service that helps users to store, compute, and share data services and assets in a secure manner.
Designed to scale, the Ocean Protocol leverages blockchain technology to share data in a safe, secure, and transparent manner. No, this is not just any other blockchain project in the town.
The protocol helps to unlock crucial data and source it to Artificial Intelligence (AI) models for path-breaking developments in science and technology. The protocol consists of an intersection of governance, business, and technical frameworks for sharing data assets and services.
The native cryptocurrency of the Ocean Protocol is the OCEAN Token. The OCEAN Token is basically a utility token that serves as a unit of exchange for buying/selling data or AI services.
Some of the official exchange partners to purchase the OCEAN tokens are Binance, KuCoin, Bittrex, Balancer, Uniswap, Poloneix, etc.
OCEAN is an ERC20 token that can be stored in any wallet with ERC20 capabilities. Some of the popular wallets supporting the OCEAN token are Trezor, Ledger, Metamask, and Coinbase Custody. You can read more about the Ocean token model here.
Let’s take a look at the latest initiative of the Ocean Protocol i.e. the Ocean Data Farming.
OCEAN Data Farming – Offering Incentive For Sourcing High-Quality Data
Relevant and high-quality data is crucial for the growth of technology and sourcing such information comes with its own set of challenges. The Ocean Protocol announced its latest program Ocean Data Farming to incentivize to the supply of high-quality data assets to the Ocean Protocol.
The term “farming” is popular in the decentralized finance (DeFi) space that basically means “mining” in the conventional crypto space.
The Ocean Data Farmers will be responsible for sourcing liquidity to the OCEAN datatoken pools; and in turn, will receive rewards in the form of OCEAN tokens. The data farmers can further multiply these rewards by using the datasets they stake on.
In his official blog post, Open Protocol founder Trent McConaghy wrote: “Ocean Data Farming aims to maximize the data supply reward function (RF). The RF is a function of liquidity added to datatoken pools, dataset usage, and potentially more. We will start with an initial RF and a program budget of OCEAN over a time interval (on the order of months)”.
The Ocean Data Farming program will perform the following functions:
- Calculate the contribution made by each Ethereum address off-chain, to the reward function (RF) of the week
- Manually airdrop the OCEAN token rewards to each address based on their contribution. The total reward will be equal to the pre-defined budgeted OCEAN.
- Declare the RF for the upcoming week as a step of fine-tuning the process to receive the most relevant and high-quality datasets. During this process, the community can pass-on crucial feedback to the Ocean protocol for improving the RF.
During the pilot testing period, the Ocean Protocol Foundation (OPF) will source the OCEAN tokens. In the future, the OceanDAO funds and the OCEAN Treasury can also contribute to the rewards function.
Powerful Applications of OCEAN
As said earlier, the Ocean Protocol has a wide and deep-rooted application across multiple streams where quality data sourcing is crucial to the underlying technology. Some of the powerful applications of the Ocean protocol are:
- Using the Web3 Access Control, the Ocean Protocol helps to keep the data assets secure. It allows users to have better control over their data and grant access to their datasets without involving any centralized intermediary.All interactions with the datasets on the Ocean Protocol are recorded immutably on the blockchain network while maintaining a complete audit on how the user data is used.
- The Ocean Protocol allows developers to build their own marketplace and other applications. Using the decentralized Ocean Data Sharing Network, developers can privately and securely publish, exchange and secure data.Thus, while building a marketplace by using Ocean software and technology, data providers can further monetize data without compromising on privacy and control.
- Ocean Protocol’s compute-to-data eliminates any trade-off between the advantages of using users’ private data and any risks of exposing it. The Compute-to-data feature ensures that it doesn’t share private data directly, instead, it provides only specific access to it.This data can be crucial for any further developments in science and technology where one needs to exchange private data without compromising on its privacy.
- The performance and accuracy of Artificial Intelligence (AI) models depend on access to valuable and private data. The Ocean Protocol’s features like compute-to-data and marketplaces help data scientists and AI practitioners to get more data.This allows data scientists to model things that were previously not possible. It ultimately helps AI to advance to new heights as data owners continue to retain privacy and control over their data.
Latest Developments – OCEAN Completes Hard Fork After KuCoin Hack
Last week, the KuCoin crypto exchange lost nearly $150 million worth of crypto tokens in a massive hack. Nearly 21 million OCEAN tokens worth $8.6 million were lost from the platform.
The Ocean Protocol developers conducted a hard fork of the Ocean Token contract to reverse the ill-effects of the hack for anyone that adopts the new version of the contract.
The official announcement read: “At 0900 GMT, the Ocean token contract was paused. At 1600 GMT, a new contract was instantiated reflecting the balances of OCEAN as of block height 10943665 on the Ethereum mainnet. The new smart contract will allocate stolen token balances to an address which will be held in trust in Singapore for persons affected by the theft”.
Following the hack, the OCEAN token price remains under pressure and has corrected nearly 15% so far. At press time, OCEAN is trading at a price of $0.3357 with a market cap of $116 million.