Before we start, it’s worth noting that Prometeus Network (‘Prometeus’) is not limited to a specific use case. The Prometeus solution can be applied to any industry that would benefit from a decentralized data market, such as Medical and Insurance industries.
However, with previous knowledge, work, and first-hand experience of barriers, the team chose to focus the initial application on influencer marketing.
In essence, the aim of Prometeus is to connect all parties interested in the use of specific and broad personal data. These parties include Data Owners (the influencers themselves), Validators, those who need data for machine learning or wish to optimize data through machine learning, buyers, and data storage companies or individuals.
By utilizing blockchain, Prometeus aim to create a transparent, censorship-resistant, and mutually beneficial ecosystem that is run by the people, for the people.
Social Networking Data Control Is Changing
The environment surrounding influencer marketing, and especially influencer data has significantly changed over the last few years. Social networking websites like Facebook have made third party collection of data difficult, and in some cases impossible (think about the Facebook-Cambridge Analytica scandal, it makes sense that governments and technology companies don’t want this). Furthermore, with legislative changes (think GDPR) moving towards individual control over data, we can expect the collection, analysis, and use of influencer data and therefore influencer marketing to be impacted.
Currently, Facebook, Google, Instagram and Twitter allow all users to download their personal data. Furthermore, Facebook, Google and Microsoft aim to make the connection between different social networking accounts easier. This means influencers have greater control over their data and are therefore empowered to utilize it in a way that meets their interests.
In addition, marketing agencies looking to engage influencers need to analyse such data (engagement, audience, geographical location, bots, etc.) to ensure they’re optimizing their spending and marketing campaigns.
Essentially, influencers and marketing agencies need a way to connect, to enable:
- influencers to monetize their brand, and
- marketing agencies to optimize their campaigns
To achieve this, a decentralized protocol or centralized system is needed.
Why use a decentralized protocol?
You can probably guess with route Prometeus have chosen. Compared to a centralized system, blockchain better aligns with the values of personalized data control, transparency, and fair markets.
How exactly?
With current trends in legislative and institutional changes, a centralized system appears to present a greater risk of falling foul of future changes (think GDPR again).
Additionally, in a centralized system, once data is collected from users, they do not know what is done with it, whereas in Prometeus Network it can be tracked via blockchain (Public IDs will be used for Validators, Enrichers and DataMarts — introduced later).
These parties make up Prometeus Network’s ecosystem and subsequently impact the data before it’s sold to the final buyer.
Finally, a centralized system (assuming they are a for-profit) is intrinsically incentivised to increase profit, whilst possibly dictating price, whereas a decentralized protocol can allow all parties to achieve personal interests in a fair manner.
Ultimately, a decentralized protocol like Prometeus Network better aligns with the current direction of legislative and institutional changes.
Solution: Prometeus Network
The ecosystem Prometeus aims to create involves multiple mechanisms with different groups carrying out varying tasks. In the same order as the data is expected to flow, these groups are Data Owners, Validators, Enrichers, DataMarts, and Data Buyers.
Additionally, Prometeus contains other influential mechanisms and parts; this includes a Ranking System and Nodes.
So that the above flowchart makes sense, let’s introduce the players in the Prometeus ecosystem.
Data Owners
Data Owners are the influencers themselves. To start, Data Owners need to validate their identity (i.e. KYC); this is done via a Validator (will be discussed next). From here, Data Owners provide their data to Validators, whereby setting the price they wish to receive. Notably, the data is not yet uploaded and stored on the blockchain; rather Validators and Nodes do this job.
Validators
The Validator’s job gets a little more complicated, as they have several duties to perform. As outlined above, Validators are required to verify and collect data from Data Owners, creating a user-friendly interface (including payment gateway) whilst verifying data ownership and quality. The Validator also needs to encrypt that data, then send it to a node to be stored on the blockchain. From there, if the Validator wants, they can have the data enriched, meaning it is analysed by AI to provide new insights and therefore increase its value. This is done by Enrichers.
Enrichers
Marketing agencies do not want an influencer’s raw data. Rather, they want information that provides insights into the influencers reach, likes, audience, bots, etc. so that they can choose the optimal influencer for their campaign.
Enrichers work with Validators via two avenues, one where they pay for the data first and then sell, and alternately where they Enrich the data first aiming to acquire profits later. Notably, all communication and transfer of data between Validators and Enrichers is done via Nodes.
It‘s expected that Enrichers need a significant amount of data to perform their tasks, thus going beyond a Validators scope. For this reason, Validators are not expected to enrich the data themselves.
Moreover, the relationship between Validators and Enrichers is reciprocal, as each needs the other to provide an optimal service (i.e. improve Validators data and improve Enrichers algorithms).
DataMarts
At the other end of the Nodes are DataMarts. DataMarts are responsible for selling and providing the data to the final buyer (Data Buyer).
Here, they are expected to create a user-friendly interface and means of purchase. The DataMart sets the final price for the buyer, which includes their fee and that which they paid the Validator (and possibly Enricher).
Data Buyers
As the name alludes, Data Buyers are the companies, groups, or individuals looking for insights into influencers.
It’s expected that this audience will mostly be marketing agencies, individual brands/companies, and influencers looking for insights into other influencers.
Ranking System
Prometeus Network will use a ranking system to mediate dishonest Validators and Enrichers. The Ranking System is mostly based on Data Buyers behavior and is applied to Validators, Enrichers, and DataMarts.
The Ranking System is dictated by five main components:
- The ranking is proportional to the volume of data sold. (Volume is measured in tokens).
- Returning customers. Here, returning customers will have a higher value than independent individual customers.
- High volume buyers will have a greater impact on the ranking of Validators, Enrichers, and DataMarts.
- The distribution of aggregate sales and purchases typically follow a power law, thus major participants could have a disproportionately large impact. For this reason, volume is factored non-linearly.
- Historical and potentially less relevant information will be gradually factored out.
Nodes
The Nodes serve two main purposes; data storage and network support. For data storage, Prometeus Network is considering the use of IPFS, BigChainDB, orbitDB, Fluence, Ethereum Swarm and Postchain (Chromia).
As outlined above, Validators collect data and send it to nodes to be stored, whereby creating metadata (publicly available data) and encrypted data.
For network support, Prometeus will use Proof-of-Stake for consensus. Prometeus are to provide more information on the Proof-of-Stake algorithm at a later date.
For greater insight and understanding of how Prometeus Network functions, we strongly recommend reading the Prometeus Network whitepaper.
The Industry
According to Statista, the overall market value of Instagram influencers will be US $2.38bn this year. With over 50m influencers (categorized as having more than 1,000 followers), this number has grown over the last 3 years.
Furthermore, between the most dominant platforms in the market a total of $631.8m has been raised, with some companies being acquired for upwards of $1bn.
Clients
Prometeus Network provides a list of impressive clients on their website (alongside testimonials). Such clients include Reebok, Wholefoods, and Sony Music.
In discussing with the Prometeus team, we clarified that these clients were users of the team’s app, which they aim to make their first commercial application of their protocol.
To be clear, these are not users of any live Prometeus deployed platform.
Partners / Investors
Token Economics
The value of Prometeus Network’s native token [PROM] can be viewed under two functions; utility and work.
Utility
- As outlined above, DataMarts interact with Validators and Enrichers, whereby all transactions utilize PROM.
- If a Data Buyer wishes, they can purchase from DataMarts using PROM.
- Data Owners can choose to be paid in PROM.
*(Both Data Owners and Data Buyers can use fiat currency, meaning influencers and marketing agencies do not have to learn about and use tokens, thus removing an unnecessary barrier for adoption).
Work
- Validators and Enrichers must use PROM for insurance deposits, therefore helping to align economical interest and discouraging bad actors. Furthermore, the insurance deposits incur a tax, which is acquired by the network’s Nodes.
- PROM is required for Node’s Proof-of-Stake deposits (the necessary deposit will be relatively small, thus encouraging decentralization).
- PROM is used for transaction fees on the blockchain.
- PROM is a reward for data storage and processing fees.
The flow of tokens can be viewed under two mechanisms for Nodes. Initially, they will receive a set reward for minting/mining blocks (i.e. Proof-of-Stake rewards), which will run out once the total supply is reached. From there, nodes will be rewarded the insurance deposit tax from Validators and Enrichers. For storage, payments come from a storage reward pool, which in essence plays out similar to Proof-of-Stake ecosystem.
A more comprehensive description of the tokenomics can be found in section 7.0 of Prometeus Network’s Whitepaper. That said, a more precise Proof-of-Stake algorithm will be released later.
Token Metrics
- CODE: PROM
- TYPE: ERC20
- TOTAL HARDCAP: $4,850,000
- INITIAL CIRCULATION: 2,450,000 PROM
- TOTAL SUPPLY: 20,000,000 PROM
- PRIVATE RAISE: $4,000,000 (for 20% of supply)
1 PROM = US $1. PROM unlocked at listing will be 40%, with the remaining 60% locked for 6-months, then vested for a following 6-months (receive 10% each month) - PUBLIC RAISE: $850,000 (for 4.25% of supply)
1 PROM = US $1. - LIQUIDITY POOL: (5.75% of supply)
For exchanges, liquidity, and marketing. Released at TGE. - COMPANY RESERVE: (15% of supply)
Used at the discretion of Prometeus Network. 12-month lock from TGE, followed by 3% monthly release. - TEAM & ADVISORS: (5% of supply)
For team and advisors. The release is the same as company reserve. - COMMUNITY/MINING: (45% of supply)
Incentive for Nodes, Data Owners, and Enrichers. Fully minted during a 5-year period. - ECOSYSTEM: (5% of supply)
For partnerships, integration, customers; 25% at TGE, 25% released every 6-months.
Team
Arthur Suilin [CEO]
An entrepreneur with a data science background and 15-years experience. Successfully founded Webvisor and Talk.ru. Winner of Kaggle competition.
Sergey Bryukov [CTO]
Ex-head of R&D at LAToken. Participated in smart contract development at Acropolis, Melonport, and DHARMA. 10-years R&D experience at Intel and Bosch.
Armen Beglaryan [Head of Operations]
Has been in IT for over 15-years, with experience creating, managing, and marketing IT companies.
Daniil Minkov [Blockchain Team Lead]
Has lead and managed the creation of complex IT and blockchain projects. Daniil is responsible for managing both internal and external blockchain developers.
Maksym Maljuk [Senior Blockchain Developer]
An experienced blockchain developer with Bitcoin, Ethereum, quorum, Hyperledger fabric/Burrow, and EOS. Graduated from the National Technical University of Ukraine with a Masters in Software Engineering.
Dmitry Vizhnitsky [Tokenomic Modelling]
PhD in economics, MA in international Finance, Associate Professor of National Economy at Ivan Franko National University of Lviv, Ukraine.
Roadmap
- Q2, 2019: Proof of concept, whitepaper and seed funding.
- Q3, 2019: Prototype. Integration of Ethereum smart contracts and SWARM, BigChainDB and NuCypher.
- Q4, 2019: MVP Alpha testnet. Incorporate Validators, Enrichers, and Nodes.
- Q1, 2020: MVP Beta testnet. Bug fix and AI integration.
- Q2, 2020: New features. Dead Man Switch, mass Data Owner adoption, optimization.
- Q3, 2020: Mainnet. Scaling and global expansion.
Summary
Whether you realize it or not, you have probably experienced influencer marketing first hand. With a growing number of Instagram users and an estimated market value of $2.38bn, this will likely increase.
With current institutional and legislative changes moving toward personal data ownership, Prometeus Network stands to fill a much-needed hole. Prometeus Network is an ambitious project with many working parts. They are at the beginning of their blockchain journey, but through prior experience have gained needed knowledge and experience (and clients) in the influencer marketing industry.
It will be interesting to see Prometeus Network’s first product (data market for influencer marketing) in action.
With that said, it’s worth remembering that Prometeus Network is creating a data marketplace for any form of data, therefore having a rather large scope of possible applications.
Website
https://www.dbcrypto.io
Twitter
https://www.twitter.com/dbcryptoteam
Telegram
https://www.t.me/dbcryptochat
YouTube
https://www.youtube.com/c/dbcrypto
This report was written using publicly available information and some information was corroborated by the team. Thank you to the Prometeus Network team for supporting our work and sponsoring this report.
