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Ocean Protocol’s 200% gain over the last year, as per CoinMarketCap’s metrics, suggests there is life in a project that enters its fifth year.
In the last 30 days, OCEAN has rallied its price by over 60% and is adding to its data-focused outlook with an artificial intelligence (AI) spin.
While the cryptocurrency market is flooded with AI and big data as new crazes, Ocean Protocol has been directing the ship down this route since 2019, working out the integration between tokenization and immutable data.
Ocean’s major focus is on being a secure and privacy-preserving platform for data exchange, allowing businesses and individuals to trade tokenized data assets seamlessly.
However, amidst the excitement, dissenting voices raise concerns about the sustainability of AI tokens. David Han, a researcher at Coinbase, suggests that while AI tokens may ride on Bitcoin’s fluctuations and AI market headlines, their long-term viability remains uncertain.
Will Ocean Protocol continue its bullish run, or is its surge merely a fleeting moment? Here is a detailed look.
Key Takeaways
- Ocean Protocol addresses the issue of centralized control over data by offering a decentralized marketplace for data exchange.
- Through smart contracts and automated market makers, OCEAN enables secure and transparent trading of data assets while ensuring compliance with regulations.
- Ocean Protocol aims to meet the growing demand for high-quality datasets in the AI sector by democratizing access to data and incentivizing data owners to participate in the data economy.
- It also provides a platform for data owners to monetize their data without compromising privacy.
What is Ocean Protocol?
Founded in 2017 by Bruce Pon and AI researcher Trent McConaghty as a non-profit open-source protocol, Ocean is built on the Ethereum blockchain to enable easy data exchange and data-based services between businesses and individuals.
OceanProtocol’s software facilitates this data exchange by linking users needing data or data storage solutions — and for this data to be verifiable and immutable over time.
How Does Ocean Protocol Work?
Modern society runs on data. However, most of this data is controlled by a handful of companies that lock this data in silos.
Ocean operates an ecosystem that unlocks this data in a decentralized, private, secure way while following data compliance regulations.
More specifically, Ocean Protocol’s marketplace (Ocean Market) runs on an automated market maker (AMM) with a liquidity pool similar to decentralized exchanges such as Uniswap.
Unlike traditional order-book exchanges, Ocean’s data exchange market settles each trade with smart contracts.
Once the data is encrypted and stored, the consumer can buy access to the data via Ocean and decrypt and download the data directly to their wallet.
Once published, the data is tokenized into a non-fungible token (NFT).
Is Ocean Protocol The Future Of AI Startups?
After giant chipmaker Nvidia (NVDA) posted revenue that surpassed Wall Street’s projections, AI tokens surged. Nvidia’s market performance took the entire industry by storm, and Goldman Sachs Group called it “the most important stock on planet earth.”
The CEO of Nvidia, Jensen Huang, acknowledged that “accelerated computing and generative AI have hit the tipping point,” adding that “demand is surging worldwide across companies, industries and nations.”
Data is the digital gold, and by democratizing access to data and incentivizing data owners to participate in the data economy, Ocean Protocol is well-positioned to address the growing demand for high-quality, diverse datasets in the AI sector.
Ocean Protocol’s decentralized marketplace, powered by smart contracts and automated market makers, has the potential to change how data is exchanged. Unlike traditional data exchanges controlled by tech giants, Ocean Protocol ensures equitable access to data while adhering to data compliance regulations.
And through its marketplace, Ocean Protocol enables data owners to monetize their data without compromising privacy, thus fostering a more inclusive and transparent data economy.
Increasing Data Security Concerns
The recent move by the US Congress to vote to ban TikTok highlights the increasing concern over data privacy and storage.
While most social media applications are designed to collect and monetize user data, often without transparency or benefit to the user, Ocean Protocol offers a solution that addresses these issues.
Where most social media platforms operate as silos of user data, Ocean empowers users to retain ownership rights while enabling them to trade data assets securely and transparently.
Also, as more social media users grow increasingly concerned over businesses and advertisers retrieving their data through social media platforms, Ocean’s decentralized and privacy-centric system could gain popularity over centralized applications of the future.
The Bottom Line
Ocean Protocol’s recent surge has captured the attention of many investors looking for exposure to AI-related crypto projects.
While some onlookers raise concerns about the sustainability of AI-related tokens beyond the hype and speculation, Ocean Protocol is seemingly cut from a different cloth with a value proposition that could outlive the current hype.
Ocean’s innovative solution for data storage and monetization for the masses could guarantee its continued growth as regulatory scrutiny intensifies and data security concerns mount.
Already, Ocean Protocol is working with emerging AI gaming companies to bring about tokenized AI in gaming. With continued growth and development, Ocean Protocol could emerge as the data exchange platform for startups, making OCEAN a good investment.
