- Ocean Protocol will develop a data market based on Balancer’s Automated Market Maker technology
- This will solve long-standing problems of data markets
- Data will become an asset class under DeFi management
The Ocean Protocol has announced that they are partnering with Balancer Labs intending to develop the first data market based on Balancer’s Automated Market Maker (AMM) technology. It will be an open-source community-centric marketplace solution for the Initial Data Offerings.
Ocean Protocol entered this partnership because Balancer’s AMMs solution decreases the burden on liquidity. AMMs allows the creation of pools that feature unequal token weights.
Balancer’s technology also comes with the advantage of dynamically changing weight among tokens. This collaboration was made easier by Ocean Protocol’s founder, Trent McConaghy, and his role as an advisor at Balancer Labs.
Ocean Protocol and Balancer Labs are planning to develop and launch the Ocean Market, a decentralized data marketplace that will feature automated data price discovery and authentic data curation. Data marketplaces are the main focus of Ocean Protocol and broadening access and data monetization opportunities.
Ocean Market will solve the trust issue between data providers and marketplace operators, potential loss of privacy, price determination, and much more. It allows data to be published as ERC20 datatokens, auto-priced, auto-discovered, and purchased or consumed as data services.
These features are realized on the decentralized blockchain foundation. The role of Balancer’s AMMs will be primarily the price discovery, but also will add the ability for developers and data providers to fork Ocean Market into their marketplace.
Balancer’s expansion into new realms
This news comes as a part of Balancer’s continues to explore new applications of their AMM technology. The creation of Ocean Marketplace will add an entirely new class of assets under the DeFi management, the data.
“Adding liquidity to these data pools is OCEAN staking, as well as authentic data quality curation signals. It’s been a pleasure to work with Fernando and the rest of the Balancer team to enable world-leading data marketplaces and to help provide feedback towards their next generation of technology”, were the words of Trent McConaghy, founder of the Ocean Protocol.
The data market is $380 billion worth in Europe alone. But this market has always suffered from how to price the data, which significantly hampered its growth. Automated Market Maker technology promises to solve it and allow for future expansion.