What is cryptocurrency Ocean Protocol (OCEAN) and how does it work?

What Is Ocean Protocol (OCEAN)?

Ocean Protocol is a crypto on-ramp for data services which unlocks the value of data. Founded in 2017, it uses blockchain technology to connect data providers and consumers. Data owners can sell data through the Ocean Market app in order to monetize their data while preserving privacy and control. Consumers, on the other hand, can buy private data that they couldn’t previously access.

This is particularly useful for AI practitioners and data scientists who benefit from access to more data, crypto-secured provenance, and income opportunities. Compute-to-data allows private data to be used in AI models and to aid research without sharing it directly. Ocean Protocol users can also earn through curating data by staking on it. Meanwhile, developers can use Ocean Libraries to build and launch their own decentralized marketplaces, wallets, and more.

The OCEAN token is the native utility token of the protocol and is the default unit of exchange when buying and selling data on the Ocean Market. It is also used for governance and staking.

How Does Ocean Protocol Work?

Data assets are connected with blockchain and decentralized finance tools through datatokens. These are ERC-20 tokens which represent the right to access data. Providers publish data services by deploying and minting datatokens, while consumers spend datatokens to access those services. A consumer sends 1.0 datatokens to a data provider in order to access a dataset. They could also send 1.0 datatokens to someone else to give them access.

When datatokens are listed on the Ocean Market, the publisher can set a fixed price or use automated price discovery which is supported by an automated market maker. The AMM pools are powered by Balancer and contain both the datatoken and OCEAN as liquidity. Price is based on the ratio between the numbers of the two tokens. If the proportion of datatokens in the pool decreases, their price goes up, and vice versa. Thus, datatoken price is auto-adjusted.

OCEAN holders can curate data by staking their OCEAN tokens in a liquidity pool. This enables them to earn fees but also carries the risk of impermanent loss and rug pulls.

Datatokens bridge the gap between the data industry and DeFi. As they are ERC-20 tokens, they can be stored in crypto wallets, traded on crypto exchanges, transferred to a decentralized autonomous organization, and used to perform other DeFi operations.

Who Are the Founders of Ocean Protocol? (History of Ocean Protocol)

Ocean Protocol was founded in 2017 by Bruce Pon and Trent McConaghy. Bruce Pon had been working on bringing data and AI together since 2013 as the founder of blockchain database BigchainDB. He received a B.Sc in Engineering and an Advanced Executive Certificate from MITSloan. Before Ocean Protocol, Pon co-founded Avantalion, a consulting firm that has helped to build 20 banks around the world for businesses including Mitsubishi and Volkswagen.

McConaghy has a PhD in Creative AI and has written acclaimed books on the topic. He founded the start-ups ADA and Solido, focused on AI and circuit design, before turning his attention to Ocean Protocol.

Other Ocean team members include BigchainDB COO Razvan Olteanu and marketing director Cristina Pon. Ocean Protocol also benefits from 35 advisors with expertise in blockchain, AI, big data, and business. The protocol is governed by a Singapore-based non-profit, the Ocean Protocol Foundation, which contracted BigchainDB to build the core protocol and network, and manage marketing and community activities.

Ocean Protocol OCEAN

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What Makes Ocean Protocol Unique?

Ocean Protocol uses its unique datatokens to turn data into assets. This provides a great many benefits previously absent in the data market. Not only can data owners monetize their data through tokenization, but the protocol democratizes data as anyone can buy it on the open market – including data that would normally be unavailable or hard to access.

The project places an emphasis on improving AI and spreading its benefits. Data scientists can interface with data directly through the Ocean Python library resources and tools. The introduction of blockchain technology also means that AI practitioners benefit from crypto-secured provenance.

OCEAN staking differs from the staking of many other coins. Stakers become liquidity providers and depositing OCEAN into AMM pools acts as a means of curating data.

What’s more, the fact that datatokens are ERC-20 tokens means that they can repurpose ERC-20 wallets as data wallets and crypto exchanges as data marketplaces.

What Gives Ocean Protocol Value?

Data is a valuable commodity in the modern world, making Ocean Protocol a valuable resource for providing access to it. The previously inaccessible datasets and data science resources Ocean Protocol provides also make it an important tool for AI practitioners.

The OCEAN token derives value from its utility. It is needed for buying data on the Ocean Market, governance of the protocol through the OceanDAO, and curating data through staking, all of which drive demand for the token, and with a capped max supply, OCEAN isn’t subject to devaluation through inflation. OCEAN is designed to increase with a rise in usage volume, so its value will likely correlate with adoption of the protocol.

How Many Ocean Protocol (OCEAN) Coins Are in Circulation?

The maximum OCEAN supply is capped at 1.41 billion tokens, of which are currently in the circulating supply. Of the max supply, 51% will be used to fund community projects curated by the OceanDAO. These tokens will be distributed over decades, according to a Bitcoin-like schedule.

OCEAN is actually deflationary as 5% of all network revenue is burned. This means OCEAN supply will decrease faster with greater adoption of the Ocean Protocol.

Other Technical Data

A fifth of the OCEAN supply was reserved for the project’s founders, 5% for the protocol foundation, and 15% for SAFTE purchasers. The rest will be disbursed to Ocean network nodes.

How To Use Ocean Protocol

Anyone can buy and sell data by downloading the Ocean Market app. To publish a dataset, Ocean users can click “Publish”, fill out the metadata, provide the URL for the data’s location, and add price information. To buy a dataset, users can load a wallet with OCEAN and connect it to the Ocean Market.

OCEAN holders can stake OCEAN tokens by adding liquidity to an OCEAN-datatoken AMM pool. Data scientists are well-positioned to do this as they have the relevant skills to evaluate which data is truly useful.

How To Choose an Ocean Protocol Wallet

OCEAN can be stored in any wallet with ERC-20 capabilities and the type of wallet you choose will likely depend on what you want to use it for and how much you need to store.

Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical know-how and are a more expensive option. As such, they may be better suited to storing larger amounts of OCEAN for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may therefore be better suited to smaller amounts of OCEAN or more novice users.

Online wallets or web wallets are also free and easy to use and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are ultimately trusting the platform to manage your OCEAN, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for users making more frequent trades.

Kriptomat offers a secure storage solution, allowing you to both store and trade your OCEAN tokens without hassle. Storing your OCEAN with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling OCEAN, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

OCEAN Staking

Ocean users can stake OCEAN on datasets by depositing it into liquidity pools with datatokens. This acts as a method of curation as the best datasets get allocated the largest amount of OCEAN. Those who participate can earn transaction fees which are a percentage of sales volume set by the liquidity pool creator.

Staking also carries risks. The ratio between OCEAN and datatokens can change, resulting in impermanent loss. Also, rug pulls can occur when the datatoken publisher pulls out their stake in OCEAN.

Go Ahead, Take a Dip

Ocean Protocol unlocks the value of data by enabling anyone to monetize it through tokenization, and providing an open market where datasets can be bought and sold. With a library of resources and the use of blockchain technology, the protocol is a useful tool for data scientists and spreading the benefits of artificial intelligence.

OCEAN is the native token of the protocol and is used for buying and selling datasets, governance, and staking. Its utility and deflationary supply make it a beneficial asset in the Ocean ecosystem.

As data becomes an ever more valuable commodity in modern society, access to it becomes more important. The unique benefits of Ocean Protocol could see it achieve greater adoption in the future, and hence OCEAN could achieve greater value.

Ocean Protocol FAQ

How Are Ocean Market Transaction Fees Spent?

Fees in an Ocean-powered data market are split between stakers, the marketplace, and the Ocean community. Stakers who deposit OCEAN into liquidity pools receive a share of fees. A cut also goes to the marketplace, which in the case of Ocean Market is passed on to the Ocean community. The rest goes to the OceanDAO, which uses it to develop the ecosystem as well as burning a small fraction.

What Developments Does Ocean Protocol Have Planned?

The project plans to deploy more chains and support more data services as data assets, including Chainlink and The Graph. Ocean Protocol also intends to launch the Ocean Data Farming program before the end of 2021, which will incentivize a supply of relevant and high-quality data assets.

How To Buy Ocean Protocol

Buying OCEAN is as easy as visiting Kriptomat’s how to buy Ocean Protocol page and choosing your preferred method of payment.

How To Sell Ocean Protocol

If you already own OCEAN and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

Ocean Protocol Price

Ocean Protocol price is influenced by a lot of the traditional factors such as project news and developments, market sentiment, the flow of cryptocurrency on exchanges, and the economy in general. 

It is also influenced by the usage volume of the Ocean Protocol, as this affects both demand for the token and the amount that is burned.

The current OCEAN price is EUR.

The 24-hour trading volume of OCEAN is EUR. OCEAN is currently ranked of all cryptocurrencies by total market cap, with a market cap of EUR. It has a circulating supply of OCEAN.

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