Ocean Protocol

//Ocean Protocol

Ocean Protocol

– A Decentralized Data Exchange Protocol to Unlock Data for AI

Our world generates an enormous amount of data. The data was before considered as a side-effect of successful business operations and today it is a vital element of all aspects of daily life for consumers, governments, and businesses. Massive amounts of collected data sits dormant on a servers. It is estimated that less than 1% of it is analysed.

Ocean protocol helps to unlock data, particularly for AI. It is designed for scale and uses blockchain technology that allows data to be shared and sold in a safe, secure and transparent manner.

AI needs data. Without data, AI models are not accurate. With no accuracy, the AI model is unusable. The winners so far have been companies with vast data resources and internal AI expertise, like Google and Facebook.

Idea

While Web 2.0 brought social perspective to Internet and gave the freedom and voice to big masses, the economy behind the information is largely privatized and monopolized by big companies like Facebook without people really realizing the value that they’re giving up.

The main purpose of huge data silos created and owned by big monopolies like Facebook is to feed the data to AIs and capitalise the gains on the results by selling more ads and making more money. Ocean protocol wants to make data viable and accessible to enterprises, startups, students, and academics working on groundbreaking research and industrial applications.

The modern era scientific breakthroughs and their industry applications led us to achieve a greater quality of life. Advanced scientific research in numerous academic fields and industry sectors ( genetic sequencing, machine learning, protein folding…) is based on high performance computing and huge silos of data to be analysed. While we already covered a projects that are trying to bring “supercomputers”to masses like Perlin, now we need to cover the other equal important part of the idea — the data protocol.

Data ecosystem

Ocean Protocol is a business, technical, and governance framework that is brought together to serve the needs all stakeholders in the data ecosystem. Ocean Protocol enables the safe sharing of data and ensures payment to the provider, while guaranteeing control, auditability and transparency to everyone.

Ocean protocol ecosystem consists of 5 groups:

  1. Data provider is any enterprise, government, group or data custodian that possess data that is stored on a decentralized network (IPFS, Storj or other). They will use different pricing models to sell data through the Ocean protocol marketplace and define the usage model and royalties based on the data usage: time limited, one time use, perpetual or any other. At the same time they will remain full control over the data choosing who they are selling he data and who is using and accessing the data.
  2. Data consumer is any enterprise, government, startup or university that needs data for analysis and training AI/ML models. They will buy data they need from the marketplace based on the data quality reviews and reputation rankings and they will be able to check the data samples to ensure the quality. They will deploy AI models on the data and work with the results without the need to see the data.
  3. Community is represented by the general public, legislators, oversight agencies, internet advocates that wish to monitor and contribute their input to shape how data is used.
  4. Marketplaces are represented by any portal that acts as a market, bringing buyers and sellers together. Each marketplace acts as the last mile in connecting buyers and sellers. Crucially, pricing offers are at the shared Ocean layer, not at the marketplace layer, to help liquidity and avoid lock-in of a dataset offer to a given marketplace.
  5. Developers are represented by anyone who wants to build value-added services or marketplaces on top of Ocean Protocol.

Ocean protocol foundation

It is a Singapore based non-profit foundation. Its mandate is to ensure open access to the protocol and platform, provide long-term governance, community and ecosystem, and be a custodian of funds raised. DEX Pte Ltd and BigchainDB GmBH are the founders of Ocean Protocol Foundation Limited.

The DEX product is an apache licensed reference marketplace built on Ocean Protocol. All other data marketplaces can re-use the DEX code and logic to build marketplace products. BigchainDB will develop the protocol and network for Ocean Protocol.

Ocean Foundation will strike a 5-year deal with BigchainDB and DEX to build the following components:

  • Ocean Protocol core (Keeper) software
  • Management & analytics of Ocean Protocol network
  • Data marketplace template software & legals (to be used by DEX; open-sourced for others)
  • Software & support to support the ecosystem and catalyze the community
  • Enable and grow the two-sided marketplace

Funds raised in the Ocean protocol ICO will be distributed in the following manner:

  • 45% to BigchainDB, up to a maximum of 25M€
  • 45% to DEX, up to a maximum of 25M€
  • 10% to Ocean Foundation up to approximately 60M€, then all remaining proceeds.

A maximum of cap of the proceeds raised to each of the founding partners — BigchainDB and DEX — is fair and sufficient to build the technology and kickstart the business development. The remaining funds will be kept by Ocean Foundation for ecosystem, advocacy, lobbying and community efforts.

The Ocean tokens

The Ocean Tokens are used on the Ocean Protocol network as the means of value exchange, to power the protocol and incentive the keeper nodes of the network. Total amount of tokens will be limited and capped at 1.41 billion tokens.

Ocean tokens are the means of transacting within the ecosystem, and because the tokens can be exchanged to procure network services, they are treated as utility tokens. Ocean facilitates all data to be tokenized. Network users must acquire tokens to leverage the data on offer. Tokens can be acquired through purchase (via external crypto exchanges), or by offering a value-added service (i.e. providing data and “keeping”) within the ecosystem.

Ocean Tokens will be issued as a native token for the Ocean network. It will not be issued as an ERC20 token.

Token distribution:

  • 45% — Network Keepers and Data Providers (Minted Block Reward) Maintain the blockchain, validate transactions, provide data
  • 25% — Acquirors (Genesis) Funding the protocol development, partnerships, lead customers and providing liquidity (with 10% in reserve for a secondary token exchange)
  • 20% — Founding Teams (“Founding Teams”)– BigchainDB and DEX (Genesis) Core protocol, network and software development, along with business development, marketing and community support
  • 10% — Ocean Protocol Foundation (Genesis) To build the community and ecosystem via partnerships, grants, prizes, rewards and bounties.

Planned token distribution for the first six years:

As seen above, approximately 60% of all tokens will be emitted within 6 years.

Ocean Foundation will exchange 25% of the total tokens supply to acquirers. The distribution consists of first three phases representing 15% of the total supply of tokens and remaining 10% as a reserve for a phase 4:

  1. Seed phase (2017?)was reserved for early acquirers who funded project to this point and advisors that have provided product, technical and business feedback leading up to the token exchange. Seed acquirers will receive their tokens in 12 equal installments over 1 year after network launch.
  2. Pre-Launch phase (03/2018.)was designed to recruit a broader range of community members, including data providers who have a clear desire and need to publish their data via Ocean Protocol. Pre-Launch acquirers will receive their tokens in 6 equal instalments over 6 months after network launch.
  3. Network Launch Distribution will be open to everyone and will be executed just prior to network launch. Tokens for this phase will be distributed immediately.
  4. Secondary Token Exchange– An additional 10% tokens will be held in reserve for a future secondary exchange in case of need for additional liquidity in the market or additional funds to build a community. If none of the triggers occur within a reasonable time frame, Ocean Foundation reserves the right to burn the non-issued Ocean Tokens or grant Ocean Tokens pro rata to existing Ocean Token holders.

Team

Ocean Protocol team is big and it would be too detailed to go into each member profile here in article. Need to make a note that lot of members have a cross roles on Ocean protocol and partner projects DEX and BigchainDB. General opinion is that team has a vast amount of experience both from blockchain and business perspective. You can check team member details at official page and social media accounts attached:

https://oceanprotocol.com/#team

Verdict

Ocean Protocol aims to unlock data, for more equitable outcomes for users of data, using a thoughtful application of both technology and governance. This is important part of the infrastructure needed for many researchers and startups.

The data decentralisation goal of Ocean protocol is considerable in our opinion and it is perfectly aligned with Web3.0 idea and everything else that comes with it. Access to the data and running AI analytics on data silos will improve the modern era scientific breakthroughs and utterly bring us greater quality of life.

Team and idea is promising and we will keep a close eye on development of the project.

By |2018-08-27T02:28:03+00:00August 25th, 2018|Reviews|0 Comments

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