Why we are building DIA
Data on crypto and financial assets is non-transparent, expensive and error-prone
As financial markets are becoming more complex and fast-paced everyday, the need for accurate and reliable financial market data is greater than ever. In present-day markets, access to financial data is controlled by a handful of information providers such as Thomson Reuters and Bloomberg, which offer proprietary, expensive products that are unaffordable to smaller market actors. These centralised data vendors create inefficient market conditions as they gather and process data in isolated silos and do not share the sources and underlying methodologies of the information presented.
Crypto investors have to deal with similar obstacles as the quick emergence of crypto assets and a lack of market regulation have led to an opaque datasphere, which is mainly controlled by one platform: Coinmarketcap (CMC). The website has repeatedly received negative publicity due to data glitches and incorrect methodologies. Several studies¹ ² ³ have shown that trading volumes on CMC are overstated by up to 80 percent, since the platform does not validate the data it pulls from the exchanges. Most other digital asset websites scrape their data from CMC and also fail to track their information feeds intelligently in order to ensure authenticity. This non-transparency and error-proneness provide the breeding ground for price manipulations and have led to a growing lack of confidence in the validity of basic market information on digital assets. This was confirmed once more by the recent Tether data affair, which revealed the urgent necessity for more transparent and reliable data in the crypto market.
Data is expensive
- Traditional financial market data providers such as Bloomberg charge up to $25,000 annually per user.
- The high monetary entry barriers give bigger market actors information advantages and create adverse conditions for smaller and individual investors.
Data is error-prone
- Trading volumes on Coinmarketcap could be overstated by 80 percent or more¹ ² ³. This coincides with several reported glitches on the data presented on CMC.
- Many alternative websites that offer market data of digital assets (e.g. Onchainfx, CoinCodex, CryptoCompare) scrape their data from CMC without ensuring its authenticity.
Data is non-transparent
- Concerns about underlying methodologies of digital asset data have led to an increasing lack of trust in basic crypto market information. Most digital asset data platforms do not publish sources or methodologies for the information presented.
- The same applies to most of the traditional financial data as methodologies are opaque, cause tremendous risks and can lead to the outright rigging of market information (e.g. the LIBOR scandal).
DIA (Decentralised Information Asset) is an open-source, crowd-driven financial information platform powered by blockchain. It will enable all market actors — regardless of their size — to supply, share and use financial and digital asset data. DIA does not seek to privatise or monopolise market data but aims to provide holistic access to financial information to everybody. As a Swiss-based non-profit association, it is DIA’s mission to democratise financial data, similar to what Wikipedia has done in the broader information space with regard to central encyclopedias.
Who are the users of DIA?
Any data seeker — meaning any person or entity with an interest in transparent, affordable and reliable market data. This entails the following interest groups:
Traders and financial institutes
Individuals or entities involved in any trading activity strongly benefit from open-source and trustworthy data. This includes fund managers, traders, individual investors and anyone else in the financial or crypto space.
Anyone aiming to provide accurate information on digital asset or financial markets can source highly reliable data from the DIA platform. This group comprises content suppliers such as financial news sites, crypto data platforms, market research institutes and more.
Regulators and financial authorities
Financial regulation and taxation authorities depend on reliable market data for solid decision-making and will be served optimally by the DIA platform.
How does the DIA platform work?
By allowing multiple stakeholders to contribute and analyse financial information, everyone benefits from a broader crowdsourced and validated set of market information. The combination of token incentives, crowdsourced data validation and game-theory-optimised flows ensures the integrity of all data and aligns the interests of all platform stakeholders.
DIA explained step by step
- Data request: People or entities seeking a particular set of data that has not already been published on the DIA platform can submit a request ticket. The successful provision of the corresponding data is linked to a bounty, which is paid by the data requester in DIA tokens once the information is validated.
- Data submission: Acting on posted bounties, data providers create scrapers to access the requested data.
- Crowd validation: Data analysts verify the submitted code through a staking mechanism. If a submitted data scraper is suspected to be wrong, anyone can challenge the submitted code through staking DIA tokens. The DIA community determines through a stake voting process who supplied the right solution and who will be rewarded with the stake in question. Analysts can also gain fixed bounties for finding errors, bugs, manipulation attempts or security flaws as well as for improving and building the overall platform structure and security.
- Data storage: Validated data is stored in an immutable, open-source database and published on the DIA platform.
- Apps & dApps: Apps and dApps can access data through oracles (on-chain) or through APIs (off-chain). Historical financial data can be accessed free of charge, while DIA tokens are charged for accessing live prices or specific APIs. More details on github.com/diadata-org/diadata.
DIA has created the first MVP dApp based on decentralised crypto data: coinhub.DIAdata.org.
Open and transparent governance
DIA was established as a Swiss non-profit association with the purpose of democratising financial and digital asset data. The association aims to provide all market actors with the same level of information to create equal market conditions for everybody and to fuel a future economy that is more fair and transparent. DIA is owned by the community as every token holder automatically becomes a member of the association with the right to vote and to propose changes.
While the initial impulse and basic framework is given by the founding members of the DIA association, the technological development will be entirely community-driven in the future and will not be controlled by a single entity. In particular, the DIA association aims to:
- promote the development of the DIA platform and related technology
- promote and support applications based on the DIA platform
- drive projects with fixed goals and rewards for improving algorithms
DIA was founded in 2017 and has already achieved the following milestones:
- Legal set-up in Switzerland
- Definition of token mechanics
- Successful MVP launch (coinhub.diadata.org)
- Generation of DIA tokens
DIA is proud to announce that the first dApps are already connecting to the platform and that the developer community keeps growing at an exceptional rate. The founding members of the association are working at high pressure on the DIA ecosystem and preparations for the upcoming ICO are in full swing.
The DIA token
DIA is an ecosystem that uses a utility token model. DIA tokens can be used for generating data, purchasing live access to data streams and as a reward for validating data and building the DIA platform.
Tokens are employed for activities such as:
- Paying for accessing live data streams and specific APIs
Historic data can be accessed free of charge, whereas access to live data streams and specific APIs can be purchased with DIA tokens.
- Compensating data suppliers for developing data scrapers
Data suppliers who build scrapers to source particular sets of data will be rewarded with a bounty that is paid in DIA tokens.
- Validating data through staking
If a submitted data scraper is suspected to be wrong, data analysts can challenge the submitted code through staking DIA tokens. The DIA community determines through a stake voting process who supplied the right solution and who will be rewarded with the stake in question.
DIA token offering
In order to finance the development of the DIA platform, 15 million DIA tokens will be sold in an ICO during the first half of 2019 (the exact date will be announced soon).
- Token name: DIA Token
- Token symbol: DIA
- Token type: ERC-223 Utility Token
- Hard cap: €15.000.000
- Value: 1 DIA = 1 EUR
- Minimum invest: €100
- Currencies accepted: BTC, ETH, CHF, EUR
- Distribution: After ICO
- Restricted regions: USA
- Audit: DMF Treuhand GmbH (www.dmf.ch)
- Mainsale start: H1 2019 (Date TBC)
- Private sale start: Live
- Whitelist: Yes
- KYC/AML: Yes
Use of funds
All ICO collected funds will be allocated in the best interest of all DIA stakeholders. In detail, funds will be distributed as follows:
Technical Development | 50%
- Ongoing development of new oracles and data feeds
- Security management (including HackerOne bounty programme)
- Quality management
- Local and global data protection/privacy (GDPR)
- Token holder relations tool
- Hosting & IT infrastructure
Communication | 15%
- Community management
- Social media
- dAPP management
Legal | 25%
- Annual audit
- Token holder representative
- Tax advisory of DIA payments
- Corporate, FINMA, EU regulatory compliance
- Ongoing legal management
- Annual token holder meeting
- GDPR compliance
Operations & Buffer | 10%
- Token reserve/buffer
Are you as excited as we are to build the financial information platform of the future? On our website, you will find more information about the upcoming ICO, including our Whitelist. Let’s free data together!