Data Markets

From Data to DeFi

As previously mentioned, Data Markets are emerging on the Ethereum blockchain through projects like the Ocean Protocol. Much like value can be tokenized on Ethereum in the form of utility tokens, governance tokens, non-fungible tokens (NFTs), and more; data can now be tokenized while retaining anonymity and privacy. DeFi tokens adhering to the ERC-20 standard are treated like "money legos," which can be plugged into decentralized applications (Uniswap LP tokens, interest bearing Aave "a" tokens, etc.) for various use cases. A similar future is around the corner for the combination of Decentralized Finance with Data - Data DeFi tokens. We will be exploring ChainLink oracles to verify off-chain data transfers to on-chain immutable ledger entries.

A Multi-Chain future

At this time, the majority of DeFi activity takes place on the Ethereum blockchain. While we envisage the majority of DeFi activity to remain on Ethereum, cross-chain bridges will undoubtedly move value across various blockchains in the future. In the initial stages of this endeavor, we will combine Decentralized Finance with Data through the Ocean Protocol. As smart contracts are successfully integrated following the Plutus and Alonzo protocol upgrades, we intend to deploy more refined strategies on the Cardano blockchain. In the spirit of decentralization, data value should and will flow across multiple chains.

Evolution of Markets

A natural question emerges: Who will use this data and for what reasons?

These questions cannot be answered comprehensively because Big Data is continuously unlocking new insights and opportunities. Until now, data has been used for business intelligence, predictive analytics, behavioral analytics, targeted advertising and marketing, and much more in the legacy world. But now that such data can be tokenized and monetized at scale in the DLT world, markets can develop around biometric data which can be tied to the health of a constituency (city, municipality, province, state, nation, DAO).

Instead of the S&P 500 or Dow Jones Industrial Average reflecting the state of an economy, we can develop health-metric proxies that more accurately reflect a population's well-being. E.g. sleeping habits, heart rate, activity levels, psychiatric biomarkers, etc.

While such a proposition may seem farfetched, DeFi developments over merely a year can ground us in this new reality:

Over $3 Billion dollars have been locked into Decentralized Finance in less than a year.

As the healthcare sector grapples with inflating costs and dwindling qualities of care, we anticipate tremendous demand for biometric DeFi Data legos. DeFi has taught us how incentives can be programmed to foster positive feedback loops, and these insights can help us motivate healthy population level behaviors in a bottom-up decentralized manner rather than a top-down authoritarian way. Population level health indices can emerge for a more informed approach to Public Health. The downstream implications are unbounded in this newfound territory.