$6 Billion staked in 2 days – Unlock the value of your DATA
–– 23 Mar 2021
Big data, and our personal data in particular is a highly valuable but illiquid asset. Now that’s changing, and the pace is frenetic. What’s the secret, and where’s the next big opportunity?
Big Data Protocol is a DeFi protocol powering a Web 3.0 data marketplace. The Protocol tokenizes commercially valuable data through a network of professional data providers and makes the data token liquid on Uniswap. Users earn data by providing liquidity to data tokens.
It had a head start by leveraging Amass Insights, one of the data industry’s biggest alternative data marketplaces. Amass already connects 14,000 professional data providers with over 10,000 consumers of data, handling sourcing, curation, suitability and compliance checks on their behalf.
This data, now tokenised by Big Data Protocol, is commercially valuable because it’s the same info that hedge funds, family offices and other professional investors buy to get market insights and guide their decisions.
🤷 How does the Big Data protocol work?
Big Data Protocol mints data tokens that grant access to curated datasets. Using the DeFi practices of liquidity mining and yield farming, the protocol makes the data tokens liquid on Uniswap.
The steps in this process are as follows:
- Source data from professional data providers; creating and curating datasets organized by category, asset class, industry, and geographic location
- Tokenise the data: the Protocol mints data tokens called bALPHA for the first collection of curated datasets
- Users farm the data token in the Data Vaults: users earn the data token by providing liquidity in Uniswap to the data token (bALPHA) and to BDP, the access token for Big Data Protocol.
- Users redeem data token for datasets in the Data Room: users burn the data token to gain access to the basket containing the underlying datasets.
Details of how this works and token metrics can be found here.
💵 Why is DataDeFi such a big deal?
What’s really innovative about the Big Data Protocol solution is how it addresses the two big problems of Big Data: Quality and Liquidity:
Data is only as valuable as the insights which can be drawn from it; to become a commercially attractive product, data must be carefully sourced, vetted, processed and analysed.
Secondly, and partly because of this, data is highly illiquid (despite its digital nature) and often kept in closed systems with a limited amount of actors.
Plugging in Amass Insight’s existing community of data providers and incentivising them via data tokens addresses the quality weakness.
Also, because Big Data Protocol uses the unparalleled liquidity of decentralised exchanges like Uniswap for their data marketplace, users of the protocol do not just have to be data consumers: they can stake, participate and benefit from being liquidity providers.
🌐 What does this have to do with our personal data?
At Tapmydata, we have the largest source of information about data access requests anywhere in the world, driven by international regulations like GDPR and 9,000 active users.
We’ve learned 2 things:
- People do care about their data and want a share of its value
- Our data is currently spread far and wide across an average of 130 middlemen, platforms and brokers in an ecosystem which grew by 50% last year alone
There’s little information about what our data is worth, largely due to lack of transparency from big platforms led by Facebook, who value each user at just $1/year according to Mark Zuckerberg.
Based on this, Facebook could pay US users $3.50/month for permission to share their data with advertisers.
Of course, Facebook currently doesn’t sell to advertisers directly, but instead targets users on advertisers’ behalf. All the actors here have to trust Facebook is doing the right thing and minimising price slippage, which is the root of current problems with the system.
In the TAP white paper and recent update from our CTO, we set out a vision for how the ethos, tools and decentralised markets of Web3 can make possible a New Economy where individuals and Unions play an active role in their data’s control, use and value.
We now have an exciting opportunity to leverage our user base and the Tapmydata app to develop a new kind of data pool that yields a Universal Data Income from holders of TAP who get involved.
Just like professional data providers, curators and liquidity stakers have done so successfully with Big Data Protocol, we’re building the tools and ecosystem of partners which will allow us to:
- Claim back data
- Verify it
- Shape it
- Stake it
- Earn from it
Our current Liquidity mining program has been hugely successful and we’ve learned so much. We are now working on a custom front-end implementing Ampleforth Token Geyser smart contracts to reward Liquidity providers that provide long term liquidity.