Ocean Protocol: AI Meets Blockchain Meets Big Data!! 🌊

data is big business don't believe me take a quick look at the valuations of companies like amazon facebook and google the truth is that in our increasingly digitized economies data now drives an ever increasing amount of global business now what's the value of that a year you might ask well i'm talking trillions of dollars but here's the problem we are producing an ever increasing glut of data and that's theoretically good news for the evolution of data hungry ai however less than one percent of global data is analyzed instead huge amounts of data are sitting in the hands of data barons like mark zuckerberg that's data that could be used by ai to solve some of the world's biggest problems wouldn't it be great if there was a way to use more data and leverage it to humanity's benefit well there is a project that does exactly that and its name is ocean protocol my name is guy and in this video i'm going to tell you everything you need to know about ocean protocol i'll also explain the problems facing the global data economy right now and how ocean provides a value proposition that you can't ignore finally i'll go over the building blocks of this project and share my analysis on its tokenomics before i get going there are a few things i need to say don't let my dapper t-shirt fool you i am no financial advisor i'm merely a chap that loves all things crypto and does his best to create tip-top educational content so if you're looking to get involved in crypto then you'll need to consult your financial advisor and do your own research now with that jabber out of the way i want to give anyone new to the channel a warm welcome to the bureau over here i dedicate countless hours to researching the hottest topics projects and themes in the crypto sphere so if you're hungry for more top of the line crypto videos then make sure you hit that subscribe button and flick on those notifications that way you'll never miss another video from me okay all set let's dip our toes into the ocean now i want to kick things off by giving you a bit of an overview of the problem that ocean protocol aims to solve so i'm going to be chatting a lot about the global data economy if you know all about that then feel free to skip ahead to the rest of my analysis using these timestamps in the timeline so the data economy encompasses a load of different aspects that includes things like data generation storage processing distribution analysis and exploitation i do need to be straight up with you no one truly knows how big the data economy has gotten but here's a fun stat from a european commission study no joke these guys estimated that the value of the european data market would be around 739 billion euros by 2020 so when you factor in the rest of the world we are probably talking about a market worth trillions of dollars a year the truth is that we're generating an increasing amount of data here is how much data the world is producing every second so according to those chaps at the un the world sends over 2.7 million emails a second spends an ungodly amount of time on youtube and creates about 289 000 gigabytes of data every second to put that into perspective that amount of data is the same amount that can be stored on just over 1 100 macbook pros so what happens with all this data well one key data consumer is ai particularly deep learning the reason for this is that experience has shown that the more data you have the better these models become and that means your models can capture more value yes i know that sounds like science fiction however the world of ai and deep learning is already here all that has resulted in the rise of tech giants like facebook and google these guys are basically data driven companies don't believe me well check out how well tailored those ads are on facebook how do you think facebook knows what ads to target you with it's all done off the back of a heck of a lot of data so the reason why data is valuable is that it leads to better ai the result is that many big tech companies are incentivized to hoard data and silo it that's a fancy way of saying they don't want to share it with anyone else after all that data can potentially give a business a huge advantage which would lead to bigger profits which can then be invested in capturing more data seriously folks these fellows aren't called data barons for no reason that all creates a crazy data feedback loop and is why we see the amount of data generated by the world increase year on year so yep there's a mad scramble for data right now the really crazy thing is that according to mckinsey less than one percent of that collected data is actually analyzed that means that the vast majority of the world's data is literally being stockpiled on servers and not being used that seems like a massive waste when that data could be helpful in solving some of the world's biggest problems now personally i don't really like the idea of those huge tech firms stockpiling data when it could be used by someone wanting to do something useful with it this could potentially add tremendous value to the world the truth is that ai is improving because of improved techniques and the ever increasing amount of data to feed them what's important to know with ai is that it's damn data hungry and needs an astronomical amount of quality and relevant data sets to deliver meaningful value that means the barrier to developing ai tech is high and is why ai talent tends to concentrate in companies with a plentiful amount of data to use that's also compounded by the fact that the likes of microsoft and facebook tend to hoover up the best talent while these youngsters are still at university to prevent competitors getting a chance to hire them this creates a feedback loop that basically just benefits a few tech giants and no one else however some truly amazing stuff has been achieved with it already thanks to ai and a ton of data we live in a world where image recognition using computers is now better than what humans can do that recognition is pretty damn useful when it comes to unlocking your iphone with face id for example the downside i guess can be seen over in china where the government seems to like tracking people's every move the point is that ai has come on leaps and bounds over the last 10 years already there are quite a few other tasks ai can do better than humans another example is the game of go where google fed its ai with an insane amount of data and that ai ended up beating a go grand master so what's the main problem in the current data economy well you know how the likes of facebook are hoarding all that data and not using it that creates problems connecting problem owners to problem solvers and giving them access to the required tools and resources i'll break that down into a working example so climate change is a bit of a bloody problem maybe the united nations wants to solve that problem and get a bunch of first-class climate scientists to start working on finding a solution however they might want to access private data from another country to help solve that problem basically connecting all these actors and getting that private data is really difficult so that poses a major question how can we unlock access to private data after all that's probably the most valuable data basically ocean protocol wants to be a unified layer or substrate that connects these three main pillars of the problem solution and data or ai the proposed solution is allowing problem solvers to go to one decentralized place that acts as a sort of public utility and connects them with the resources they need to solve that problem in a nutshell ocean protocol wants to be that connecting layer another cool thing with ocean protocol is that it wants to unlock access to private data and allow people to use it without the data being released into the wild so in other words they want to protect that private data but allow data scientists to train models with that data the project solution is to create a data privacy zone this allows a data scientist to send their algorithm into it test their model with that data and allow the findings to be extracted now i want to move on to tell you a bit about the tech that powers the ocean protocol platform in short ocean protocol is a decentralized ethereum powered smart contract platform running on proof of authority this enables the safe sharing of data and ensures payment to the data provider whilst guaranteeing control auditability and transparency to everyone so you might have a user that wants to use a library to interact with ocean protocol the protocol itself is kept alive by nodes called keepers which are ultimately responsible for ensuring that the network is running optimally then there is something called the parity secret store which keeps that private data private you then have two key micro services the first is a component called the brezo cloud services manager which acts as a proxy to preserve your privacy but allows you to access data on the platform next you have a metadata store called aquarius ai assets basically have three core separate components on ocean protocol the first is that assets are registered on the blockchain meaning that each asset has its own unique id secondly it has metadata attached to it which describes the asset or data set and finally the data needs to be stored somewhere so what are these ai assets of which i speak well you could register raw data and publish it as an asset using ocean protocol however look at the data science workflow right here you'll probably notice that model pipelines trained weights or pre-trained data models and metrics could all be pretty valuable ai assets you could register all of these as assets on the platform too and retain ownership of them via a private key after all it can take a huge amount of effort to create model pipelines train data models and determine metrics so it can be really useful to share these assets and potentially monetize them oh yes once that ai asset is published using ocean protocol it's searchable by anyone in the world even better because the asset is on a blockchain it's very difficult to censor that's damn useful for people like journalists in authoritarian countries who might want to share data proving corruption for example and speaking about money related data that's usually pretty sensitive so how can people safely use sensitive data like your banking history now i know that sounds terrible but who knows maybe some number crunching whiz kid can solve all of the world's socio-economic problems with access to that sort of data at scale the important thing here is that you certainly don't want that type of data being released into the wild you don't even want people to be able to download that data onto their computer while giving them the option to give it or sell it to someone else basically ocean protocol solves all that by keeping the data behind a firewall and only allowing participants using that data to send in their algorithm train it privately and create a private model this model will only release predictions to the user a pretty smart solution if you ask me so you now know that ocean protocol is all about powering a two-sided data market with data providers on one side and data consumers on the other that's pretty good news for ai and could potentially add significant value to that niche however a more important question is that concerning the value of the ocean token so let's get into that shall we in short the ocean utility token is used as the unit of exchange for buying and selling data ai assets and ai services so if there's no data changing hands using the protocol then the token is pretty damn worthless now i've been thinking about marketplaces and an example i'd like to use is airbnb for a marketplace like that how do you get the ball rolling well if you have a lot of customers who want vacation rentals and no properties listed for hire then the platform would not have been successful that's why platforms like this initially focus on building up inventory on the platform before looking to send buyers over there basically there will be four ways to earn ocean tokens you can provide data quality control or curate the data open up a marketplace on the protocol or be a network keeper and provide validation and verification services to the network that all makes a lot of sense to me what's super interesting is that the teams allocated 51 percent of all ocean tokens to be distributed as rewards to incentivize just that given that ocean's current circulating supply is around 360 million this means that only around 25 of the maximum supply has been released so that's going to mean quite a lot of inflation for holders however it's not yet been decided exactly how ocean will distribute that 51 of the tokens as rewards what is for sure though is that at current valuation ocean has a sizable war chest to incentivize those value-creating behaviors the really crazy thing is that big data sales hit 187 billion dollars in 2019 so if ocean protocol can even grab a fraction of that market then there's going to be a sizable demand for ocean tokens to buy all that data given that ocean has a hard cap of 1.41 billion ocean then an increase in demand for the ocean token should lead to an increase in price so right now any ocean holders should expect an inflation-driven economic model to incentivize things like data provision however that should be at least partially offset when staking goes live as this will take tokens off the tradable supply in other news coinbase said it was reviewing 19 cryptocurrencies for possible listings and ocean protocol was amongst them so if you're the type of person that thinks coinbase listings are good for price you might want to keep tabs on that but do remember that right now demand for the ocean token is being driven by speculation and that its value will only be validated if ocean protocol succeeds in creating a successful data marketplace even then price appreciation will be driven by demand supply imbalances i now want to move on to swiftly tell you about key integration that's happened recently at ocean protocol in july ocean announced that its partner protofire had successfully completed integration with file coin storage that basically means that the project now boasts all of filecoin's decentralized cloud storage capabilities for those of you who don't know what filecoin is it's a yet to be released decentralized cloud storage protocol it's actually pretty damn exciting itself and i've covered it in a video i did earlier this year you can watch that right over here anyways what the protofire integration means is that it's possible to tailor a strategy in terms of software redundancy and the speed of data retrieval for each marketplace users can now either self-host data or store it on the ipfs protocol that brings it a greater range of customizable options in a decentralized way as a direct result of the integration with filecoin data providers have more configurable options for things like data replication and extraction geographic distribution of access rights and better control over the size of the data stored on top of that data publishers don't need to rely on middlemen to manage storage resources and are even able to cut costs sounds like good news all around if you ask me okay folks this video has been going on for a while and it's time to start winding things down honestly i do think there is a real problem in the traditional data markets the more we create the more we're forced to entrust it to a handful of companies who then exploit it for profit the problem is that the majority of data is being captured by a small number of powerful tech firms i somehow doubt they'll be happy sharing any of it with any competitors and that includes decentralized alternatives like the ocean protocol so i'm under no illusions in my book the vast majority of data is unlikely to ever be listed on a decentralized marketplace that's got me thinking what sorts of data will end up on ocean protocol and if it will be in any meaningful quantity the problem with incentivizing data providers is that it doesn't mean they'll supply good data that data consumers are willing to buy indeed that is why curators have such a critical role to play here ocean's solution to allow people to use private data in a responsible way seems pretty ingenious to me i can see why that would be appealing however it must be noted that there is a roadblock in terms of getting people to trust that system and entrusting it with private data when it comes to tokenomics i really don't mind that ocean will use a big chunk of the total supply to fuel the adoption of the protocol fundamentally this makes sense and i also completely agree with all the behaviors they intend to incentivize with these funds if ocean protocol is successful in providing that data marketplace with blockchain superpowers then any inflation should be more than offset by the net increase in demand for the token to buy and sell data however this really only holds true in the event of sustained growth in theory if buy and sell volume on the ocean protocol stayed stagnant and data sellers converted ocean instantly into bitcoin or fiat then there wouldn't really be any net increase in demand for the token this could then lead to a stagnant token price with all that being said ocean protocol is certainly competing in a niche with tremendous upside there are also short-term catalysts like those rumblings of a coinbase listing that makes it the type of token that's predisposed to be speculated on in the short term will ocean protocol pull it off and disrupt data markets i guess only time will tell and that's it my dears my overview of ocean protocol i've done a lot of talking and now it's time to hear your thoughts do you think ocean will make waves are there any other projects that you're backing use those comments below and finally if you like this video don't forget to moon up the likes and smash that subscribe button that way you'll see more videos from me real soon before i leave you there is something you need to know oftentimes i have so much more info that i want to share but time sadly runs away from me this is exactly the reason for my weekly newsletter one email every week that summarizes and crystallizes everything that's on my mind market moves unreported news and hidden coin views do you want to be a part of it alrighty then simply go to the description below and find the sign up link all you need do is flat your email and hit submit then just confirm your subscription and that's it you'll remember you may just be in time for my next email which includes a hidden coin tip you don't want to miss

Channel: Coin Bureau

Views: 98,346

Keywords: Ocean Protocol, Ocean, Big Data, Cryptocurrency, Ethereum, Review, Binance, Facebook, Amazon, ERC20

Id: Jr6ZuePmV-g

Length: 20min 21sec (1221 seconds)

Published: Tue Sep 01 2020