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22 Oct 2021

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What is Ocean Protocol? – Work, Market, and More
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What is Ocean Protocol? – Work, Market, and More

The Ocean Protocol is an open-source protocol that allows businesses and individuals to exchange and monetize data and data-based services.

Built on top of the Ethereum blockchain, the Ocean protocol uses ‘data tokens to gate access to data sets. The tickets then redeem by users who need access to the information.

The Ocean is seeking to make the data sets on its platform available to startups and researchers without the data having to leave the hands of those who store it.

Ocean’s software construct facilitates this data exchange, linking users who need data or do not have resources to store it with those who have resources to spare.

And in return for their work, providers award OCEAN, Ocean’s native cryptocurrency.

The OCEAN token (sometimes referred to as OCEAN coin or OCEAN crypto) design multipurpose. It uses to validate the best data tokens and allow users to participate in governance and buy and sell data.

And further, Ocean enables marketplaces to implement its protocol to connect parties and facilitate transactions between them.

For example, Ocean Market, created by the Ocean team, is a place where data tokens are publicly available for trade.

For extra regular updates from the Ocean Protocol team, you can bookmark the Ocean Protocol Blog, including product details, new releases, and project integrations.

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How does Ocean Protocol work?

The Ocean Protocol uses custom programs is called intelligent contracts. It ensures that each data token can become exchangeable across Ethereum’s blockchain and its decentralized applications.

And it make the system work; Ocean operates through three main components:

Providers

Firstly mint data tokens and sell the right to access off-chain data sets

Consumers

Secondly purchase data tokens and redeem access to datasets

Marketplaces

Lastly it connect providers and consumers and facilitate transactions

What is the Ocean Market?

The Ocean Market is the automated market maker (AMM) built to facilitate the minting and exchange of data tokens.

In contrast to traditional order book style trading that matches the ‘bids’ and ‘asks’ of participating parties, automated market makers use the collection of liquidity pools.

And similar to Uniswap and Balancer, allowing each trade to settle through the set of smart contracts.

And when the provider seeks to mint and publish a data token, they specify several fields to inform consumers about their product.

It including a title, description, price, and a URL where the data can create, encrypted, and stored on Ethereum.

Ultimately, when consumers decide to redeem a data token, the data is decrypted and subsequently downloadable directly from the wallet connected to the marketplace.

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