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Investing In the Ocean Protocol (OCEAN) – Everything You Need to Know

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The Ocean Protocol (OCEAN) operates as a decentralized data-sharing network. The platform combines encryption technology, datatokens, and a proprietary marketplace to enable businesses and users to publish, discover, sell, and consume data assets in a seamless manner. Uniquely, the network focuses primarily on providing services to startups and researchers.

What Problems Does the Ocean Protocol (OCEAN) Solve?

There are many different problems that the Ocean Protocol (OCEAN) attempts to rectify. Primarily, the developers seek to unlock the value of data in new ways. In the current business model, valuable data remains locked due to the compartmentalized nature of the industry.

The Ocean Protocol utilizes the unique technical characteristics of blockchain technology to create an entirely new market. In this way, data providers and users gain access to more information and the chance to earn rewards.

The Ocean Protocol (OCEAN)- Twitter

The Ocean Protocol (OCEAN)- Twitter

Benefits of the Ocean Protocol (OCEAN)

The Ocean Protocol introduces a host of benefits to the data sector. For one, the platform provides multiple ways for users to secure a passive income. It enables anyone to monetize their data and start earning. The network also supports staking features.

Secure

Security is the biggest benefit one gains from using the Ocean Protocol. The platform provides the market with an open-source, decentralized alternative to the status quo. For example, the protocol is structured to allow data sharing while preserving user privacy. Data hosts don’t have access to any information that they store. Instead, the data is decrypted and subsequently made downloadable only when users request the information using datatokens

How Does the Ocean Protocol (OCEAN) Work

The Ocean Protocol lives on Ethereum, the world’s second-largest blockchain. The protocol relies on smart contracts to ensure each datatoken retains exchangeability while remaining operative within its decentralized applications. To accomplish this task, the network integrates three main components.

Providers

Providers are the first node that plays a vital role in the Ocean Protocol ecosystem. Providers are tasked with keeping datasets stored locally. They have the option to sell portions of these sets to specific groups or to provide access for particular use cases. As part of these tasks, they also mint datatokens and sell the right to access off-chain data sets.

Consumers

The second node in the protocol is the Consumer. Consumers purchase datatokens from the Ocean Market. They redeem these tokens to gain access to datasets stored on the provider’s servers.

Marketplaces

The third component is the network’s marketplaces. The main goal of these marketplaces is to facilitate transactions by connecting buyers and sellers in a peer-to-peer manner. Providers can setup up their own marketplaces to customize how their data is offered to buyers.

Ocean Market

The network also provides the Ocean Market as the main location for providers and consumers to meet up. The market handles the minting and exchange of datatokens. Notably, the Ocean Market is an automated market maker (AMM), meaning that it does away with an order book. Instead, users trade directly with smart contracts. As such, the Ocean Market enables businesses and individuals to exchange and monetize data and data-based services in new ways.

Datatokens

Datatokens are one of the core functionalities of the network. These ERC-20 tokens are used to provide access to data sets and services. Specifically, consumers redeem datatokens with providers to access the information they hold.

Minting Datatokens

The Ocean Protocol was built from the ground up to simplify data sharing. The network follows this line of thinking with their datatokens’ strategy. To mint a data token, you simply need to specify several fields of information. This data is what’s used to inform consumers about your product.

Features - Homepage

Features – Homepage

You will want to provide the title, description, price, and the URL to where the data’s location. The information is then encrypted and stored on the blockchain. Users can then purchase access to this information on the marketplace.

OCEAN

OCEAN is the main governance and utility token of the platform. OCEAN is an ERC-20 token that enjoys full interoperability within Ethereum’s vast ecosystem. The token holds multiple roles in the network. You can stake OCEAN and earn rewards or participate in the network’s governance model.

The network also relies on these tokens to validate the best datatokens. Notably, you must hold OCEAN to interact with the features of the network. In this way, OCEAN is critical to the platform’s functionalities.

Stake Ocean

You can stake OCEAN tokens to secure rewards. These rewards originate from a percentage of the transaction fees paid by traders that utilize liquidity pools. Staking is one of the most popular DeFi features in the market because it required very little research and your rewards are more consistent than trading.

Compute-to-Data

The Compute-to-Data service enables users to leverage datasets and perform computational tasks securely. This protocol provides permissions so that developers can provide services while retaining privacy when needed.

Ocean Protocol Foundation

The Ocean Protocol Foundation is a Singapore-based non-profit tasked with expanding the network’s reach. This group focuses on new features, products, partnerships, and Dapps that have the potential to boost adoption. Impressively, the group has secured over $26.8 million via several rounds of token offerings. These actions help to release around 160 million OCEAN tokens in the market.

Governance

The network’s developments are steered by its community via the OceanDAO. Users can stake OCEAN to gain voting right within the network. You can also put forth proposals regarding technical changes, new features, or changes to the fee structure.

History of the Ocean Protocol (OCEAN)

The Ocean Protocol entered the market in 2017. The network was founded by an AI researcher named Bruce Pon and a well-known blockchain developer, Trent McConaghy. McConaghy previously founded a blockchain database software company called BigChainDB. The goal of the project was to create a secure data market that leveraged the transparency of blockchain technology.

How to Buy Ocean Protocol (OCEAN)

Ocean Protocol (OCEAN) is available on the following exchanges:

Kraken – This is the best option for USA residents.

BinanceBest for Australia, Canada, Singapore, UK, and most of the world. USA residents are prohibited from buying OCEAN here.  Use Discount Code: EE59L0QP for 10% cashback off all trading fees. 

The Ocean Protocol – A Decentralized Approach to Data Sharing

The Ocean Protocol provides the market with a powerful new way to leverage their data. Researchers are sure to enjoy the convenience and responsive nature of the system and regular users benefit greatly from the staking rewards. Today, the Ocean Protocol services a valuable niche market. As such, you can expect to hear a lot more from this project in the coming months.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

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