Oasis Foundation
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Oasis Foundation

Programming Data and Money: The Data Market Yield

How incentives for users can break the data paradox and why the Oasis Network is critical to enabling it.

Breaking the data paradox with an incentive-based model

Fresh data has become a valuable tool for many companies — it can inform critical product decisions, improve personalization, enable user growth, and create better analytics. Alternatively, users don’t derive the maximum value from their data, in part because they aren’t offered easy, clear, and transparent ways to do so. The two sides of the negotiation, users and companies, differently price the data, leaving a gap in the equation.

Programmability and Privacy

Blockchain creates protocol level incentives. Smart contracts create computers that can make commitments, introducing strong guarantees that code will continue to operate as designed without relying on humans or organizations. The Oasis Network also provides data encapsulation, that allows users to establish selective and consent-based computation on their information, and data privacy, which allows users to maintain ownership and confidentiality of the data even when the right to compute is granted to a 3rd-party.

Programmatically attaching money to the flow of data creates the possibility to establish a direct and repeated relationship between the data producer/owner and the data consumer/buyer, making it possible for companies to ‘continuously’ cooperate with users.

Data Market Yield

The above model changes the data collection practice. Instead of finding creative ways to collect data and then hide the policy behind long T&Cs, applications can create incentive-based models that encourage data-based cooperation between users and applications. Users remain the owners of the capsules that contain their data and give temporary access to computation models that are allowed to perform specific tasks only. Data requestors lock an asset that serves as a payment for the corresponding usage of the data and the transaction is settled, automatically, without any negotiation to be done or legal contract to be established. The resulting consumption-based model allows data to generate a yield: ‘control your data, invest it, and earn a payout’.

Where we go from here

We built APIs to abstract the complexity of blockchain. We partnered with some of the main players in DeFi to integrate their protocols and services on the Oasis Network. We are supporting and incentivizing companies and developers that align to the vision; Through our Dev Accelerator program and the Parcel SDK developed by Oasis Labs, the Oasis Foundation is focused on encouraging developers to start incorporating privacy as an incentive for the final user.

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Luca Cosentino

Product Lead into #fintech, #crypto, #btc, helping founders. — @oasislabs , ex google, americanexpress, proctergamble