Ocean Protocol’s core objective is to address the challenges of user data circulation and value release. Its issued tokens can even replace ERC-20 Ethereum tokens. This article is sourced from the book written by Tea House Er and edited by Shenzhen Tide.
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Table of Contents
Core Mechanism
Data Tokenization
Process of Data Set Tokenization
Advantages of Data Tokenization
Operation Mode
Decentralized Market (Ocean Market)
Listing and Selling Data
Data Access and Consumption
Pricing and Automated Market Maker (AMM)
Compute-to-Data
Staking and Liquidity Supply
Governance and Community Participation
Privacy Control
Compute-to-Data
Ocean Token
Medium of Exchange
Governance
Staking and Liquidity Provision
Value Storage and Investment
Role in Data Market and Ecosystem
Team/Financing Situation
Future Development Analysis
Technological Innovation and Market Demand
Ecosystem and Community
Team and Leadership
Financing and Token Economy
Market Performance
Future Challenges
Conclusion
Ocean Protocol is a decentralized data trading platform that aims to address the challenges of user data circulation and value release. In the current internet environment, large companies like Google and Meta/Facebook profit by collecting user data, analyzing it, and generating revenue through advertising, while retaining all the profits. Users have no control over their data or the value it generates.
Ocean Protocol aims to change this situation by providing users with data ownership and enabling the monetization of data, making DataDaos possible. DataDaos allow users to truly own their data and profit from it.
Based on the Ethereum blockchain, Ocean Protocol has established its own market that connects data consumers and providers. Through the tokenization of data sets and services, it allows data providers to monetize their data effectively while providing users with an ecosystem to access valuable data in a one-stop manner.
Currently, Ocean Protocol has issued its native token “Ocean”. This token can be used for data staking, community management, as well as purchasing/selling DataTokens. It incentivizes the growth of the ecosystem by rewarding data providers and consumers. Notably, Ocean token is a standard ERC-20 Ethereum token.
Ocean Protocol adopts a unique and innovative approach to data sharing and monetization, utilizing blockchain technology to establish a decentralized data market. Its core mechanisms revolve around data tokenization, decentralized market, privacy and control mechanisms, as well as community governance.
Data tokenization is one of the core mechanisms of Ocean Protocol, aiming to transform data into tradable digital assets. This process is achieved through the creation of DataTokens, which are ERC-20 tokens representing specific data sets. Data owners can tokenize their data sets through Ocean Protocol, enabling them to monetize and share their data while protecting privacy.
Creating DataTokens:
Data providers can tokenize their data sets through Ocean Protocol, creating ERC-20 tokens called “DataTokens”. These tokens represent access rights to specific data sets. Each data set has its unique DataToken.
Data Access Control:
The tokenization process involves not only generating tokens but also setting up smart contracts that define access permissions for corresponding data sets. This ensures that data access rights can be securely and controllably transferred to token holders.
Trading and Liquidity:
DataTokens allow data owners to list and sell access rights to their data sets on the Ocean Market. Token holders can trade these tokens on the market or stake OCEAN tokens on specific data sets to provide liquidity.
Data Monetization:
Data tokenization enables individuals and organizations to turn their data into a source of revenue by selling access rights and directly profiting from the data.
Privacy Protection:
Ocean Protocol’s Compute-to-Data feature allows data to be processed and analyzed without revealing the original data. This means data providers can share their data without disclosing sensitive information.
Market Liquidity:
By staking DataTokens and OCEAN tokens on the Ocean Market, liquidity can be provided for data sets, facilitating data transactions and generating income for liquidity providers.
Decentralized Governance:
Ocean Protocol enables community members to participate in the development and management of the protocol through its governance model. The creation and usage of DataTokens are collectively determined by the community, increasing transparency and trust in the platform.
Open and Scalable Ecosystem:
Ocean Protocol provides an open and scalable ecosystem for data providers and consumers, supporting the development of various types of data services and applications.
Data Set Release:
Data providers need to describe their data sets and define the number of DataTokens required to access the data set.
Pricing Mechanism:
Data providers can set prices for their DataTokens or utilize the automated market-making mechanism (AMM) of Ocean Market to dynamically adjust prices.
Data Access:
Consumers can purchase DataTokens using OCEAN tokens to gain access to data. In some cases, access rights may be time-limited or limited to specific operations on the data.
Ocean Market is a fundamental component of Ocean Protocol, serving as a decentralized market where data providers and consumers interact. It facilitates secure and efficient data exchange using blockchain technology.
The following are detailed descriptions of how Ocean Market operates and its specific features:
Data providers can list their data sets on the Ocean Market by tokenizing them into DataTokens. These DataTokens represent access rights to underlying data sets. When a data set is tokenized, it becomes a digital asset that can be bought, sold, or traded on the Ocean Market. This process not only simplifies data monetization but also ensures that data providers maintain control over their data.
Data consumers, such as developers, researchers, and businesses, can browse the Ocean Market to find data sets that meet their needs. Once they identify relevant data sets, they can use the OCEAN token to purchase the corresponding data tokens. Holding DataTokens allows them to access the data sets for consumption or analysis, depending on the terms set by the data providers.
Ocean Market adopts an automated market maker (AMM) model to facilitate the trading of DataTokens. This model allows for dynamic pricing based on supply and demand, ensuring that data prices are market-driven. Data providers can choose to set fixed prices for their DataTokens or let the market determine the prices through the AMM mechanism. This flexibility supports efficient price discovery and liquidity for data assets.
One of the key features of Ocean Market is the compute-to-data capability, which allows analysis or processing of data without exposing the original data. This means consumers can perform algorithms or computations on the data they access through DataTokens without revealing the raw data. This feature is crucial for privacy protection and security, making Ocean Market attractive for handling sensitive or proprietary data.
Users can stake OCEAN tokens on specific data sets to provide liquidity. This liquidity is essential for facilitating the trading of DataTokens in the market. As a reward for their contributions, liquidity providers can earn a portion of the transaction fees generated by DataTokens associated with the data sets they support. This incentivizes the management of high-quality data sets and the provision of market liquidity.
Ocean Market is governed by the Ocean Protocol community, and OCEAN token holders have a say in the development and direction of the market. This decentralized governance model ensures that the market evolves in a way that aligns with user interests and needs.
Fundamentally, Ocean Market aims to democratize data access, allowing data providers to monetize their assets in a secure environment and enabling easy access to various data sets for data consumers. It combines blockchain technology, dynamic pricing mechanism, privacy protection features, and community-driven governance, making it a comprehensive solution for Ocean ProOcean Protocol: The Cornerstone of Ecosystems and Key Driver of Decentralized Data Economy
Ocean Protocol has adopted an innovative approach, particularly through its Compute-to-Data functionality, to ensure the privacy and security of data while allowing for its effective use. The privacy control mechanism of Ocean Protocol emphasizes not only the protection of data but also ensures that data owners have complete control over their data. The following is a detailed explanation of Ocean Protocol’s privacy control:
Compute-to-Data is a core feature provided by Ocean Protocol, allowing data analysis and computational tasks to be performed where the data is stored while maintaining data privacy. This means that data consumers can perform algorithmic analysis on the data without moving the data to their own servers or other computing environments. Here’s how the process works:
Data remains in place: Through Compute-to-Data, the original data remains in the secure environment of the data provider and is not directly exposed or transmitted to data consumers.
Privacy-preserving analysis: Data consumers submit computational tasks to the environment where the data resides. After the computation is completed, only the results are returned to the consumer, and the original data and its sensitive content are not disclosed.
Authorization control: Data providers can precisely control which users or entities can request computations and allow the execution of specific types of analysis, ensuring that the use of data complies with the wishes and regulations of the data provider.
With Compute-to-Data functionality and data tokenization mechanism, Ocean Protocol allows for the effective use and monetization of data while protecting data privacy and ensuring data security. This emphasis on privacy and control makes Ocean Protocol an ideal platform for handling sensitive data and promoting data-driven innovation. Through these mechanisms, Ocean Protocol establishes a secure, transparent, and mutually beneficial data exchange environment between data providers and consumers.
Ocean Token (OCEAN) is the native cryptocurrency of the Ocean Protocol platform, playing multiple key roles in supporting the operation of the entire ecosystem. As a blockchain project aimed at addressing data sharing and monetization issues, Ocean Protocol provides incentive mechanisms through OCEAN tokens, facilitating data transactions and governance on the platform.
The following are several main uses and features of the OCEAN token:
OCEAN tokens are used as a medium of purchase for data services and access rights to data sets on the Ocean marketplace. Data providers tokenize their data (create DataTokens) through OCEAN tokens, and data consumers can purchase these DataTokens with OCEAN tokens to gain access to the data.
OCEAN token holders participate in the governance process of Ocean Protocol, including voting on key updates, upgrades, and policy changes to the platform. This decentralized governance model ensures that the development direction of Ocean Protocol reflects the will and best interests of its community.
In Ocean Protocol, OCEAN tokens can also be staked, particularly in providing liquidity for the data market. Users can stake OCEAN tokens into specific data asset pools to support the liquidity of data assets. In this way, stakers can earn returns based on their staked amount and related transaction fees.
Like many cryptocurrencies, OCEAN tokens are also seen as a store of value and investment tool. Investors purchase and hold OCEAN tokens, partly based on their confidence in the future development potential of the Ocean Protocol project.
By providing economic incentives, OCEAN tokens encourage data providers to share their data and enable data consumers to access the data in a feasible and cost-effective manner. Additionally, through staking and governance, OCEAN tokens incentivize community members to participate in the maintenance and development of the ecosystem, ensuring the health and activity of the platform.
Total Token Supply: 1,410,000,000 tokens. Token Allocation: Founding Team – 20%, Foundation – 51%, Acquirors – 24%, Network Reward – 5%.
As of now, the current price of the OCEAN token is $1.20, with a 3.33% growth in the past month. The market capitalization of OCEAN is $679,479,935, ranking at #130. The circulating supply of OCEAN is 568,381,103 tokens, accounting for 40.31% of the total supply. The estimated market capitalization when all OCEAN tokens are fully circulated is $1,685,607,326.
Ocean Protocol was founded in 2017 by two blockchain entrepreneurs, Bruce Pon and Trent McConaghly, in Singapore. The core team currently consists of 25 blockchain technology experts and entrepreneurs who operate globally, with most team members based in Romania and Germany.
In addition to the dedicated core team for the protocol, Ocean also has over 20 external advisors who provide guidance on business partnerships and governance. These advisors are also based in various countries/regions, often serving as CEOs, founders, or C-level executives of technology or analytics companies.
Since its inception, Ocean Protocol has attracted a total of $28 million in venture capital funding through five financing rounds. The latest round was a $5 million seed investment on May 27, 2022. Investors include Blockchain Coinvestors, Caballeros Capital, Cogitent Ventures, Cypher Capital (Dubai), and Deep Ventures (venture capital).
The future prospects of Ocean Protocol can be analyzed from several different perspectives, including technological innovation, market positioning, ecosystem maturity, team capabilities, and financing and token economics.
Ocean Protocol presents a unique model for data sharing and monetization from a technical standpoint. It addresses the privacy and availability contradiction in the modern data economy, especially with the rapid development of artificial intelligence and big data analytics. The Compute-to-Data functionality meets the market demand for verifiable computation without sacrificing privacy, which is a key factor driving future development.
The ecosystem of Ocean Protocol is constantly evolving, including participants ranging from startups to large enterprises. The community governance model and the use of the OCEAN token incentivize widespread community participation, contributing to the long-term vitality and innovation of the platform.
The team behind Ocean Protocol consists of experienced entrepreneurs, blockchain technology experts, and industry advisors, with the ability to successfully drive projects from concept to implementation. The professionalism and success of the team so far provide strong support for its future development.
The funding history of Ocean Protocol demonstrates strong market confidence in its vision and technology. To date, Ocean Protocol has raised funds through initial token issuance and subsequent funding rounds, providing financial support for its ongoing technical development and market expansion.
The performance of the OCEAN token in the market reflects investor recognition of the future development potential of Ocean Protocol. The market capitalization, circulation, and trading activity of the token are important indicators of its market acceptance and investor sentiment.
Although Ocean Protocol shows great potential in many aspects, its future development also faces challenges, including market competition, scalability, and regulatory compliance. The use and sharing of data need to comply with constantly changing privacy laws and regulatory frameworks worldwide.
The future development of Ocean Protocol will depend on its ability to continue driving technological innovation, expanding its ecosystem, attracting more users and partners, and adapting to regulatory environments and market changes. Given its strong team background, clear vision and strategy, and initial market success, Ocean Protocol has the potential to become a significant player in the data economy field. However, its success will also depend on external market conditions, the sustainability of technological innovation, and the activity and commitment of the community.