A comprehensive list of key terms, concepts, and acronyms used in the Ocean Protocol ecosystem
Ocean Protocol is a decentralized data exchange protocol that enables individuals and organizations to share, sell, and consume data in a secure, transparent, and privacy-preserving manner. The protocol is designed to address the current challenges in data sharing, such as data silos, lack of interoperability, and data privacy concerns. Ocean Protocol uses blockchain technology, smart contracts, and cryptographic techniques to create a network where data providers can offer their data assets for sale, data consumers can purchase and access the data, and developers can build data-driven applications and services on top of the protocol.
The Ocean Protocol token (OCEAN) is a utility token used in the Ocean Protocol ecosystem. It serves as a medium of exchange and a unit of value for data services in the network. Participants in the Ocean ecosystem can use OCEAN tokens to buy and sell data, stake on data assets, and participate in the governance of the protocol.
The transaction value is a key metric that refers to the value of transactions within the ecosystem.
Transaction volume(TV) is often used interchangeably with data consume volume (DCV). DCV is a more refined metric that excludes activities like wash trading. DCV measures the actual consumption or processing of data within the protocol, which is a more accurate measure of the value generated by the ecosystem.
Ocean Data Challenges is a program organized by Ocean Protocol that seeks to expedite the shift into a New Data Economy by incentivizing data-driven insights and the building of algorithms geared toward solving complex business challenges. The challenges aim to encourage the Ocean community and other data enthusiasts to collaborate and leverage the capabilities of the Ocean Protocol to produce data-driven insights and design algorithms that are specifically tailored to solving intricate business problems.
Ocean Data Challenges typically involve a specific data problem or use case, for which participants are asked to develop a solution. The challenges are open to many participants, including data scientists, developers, researchers, and entrepreneurs. Participants are given access to relevant data sets, tools, and resources and invited to submit their solutions
The Ocean Market is a decentralized data marketplace built on top of the Ocean Protocol. It is a platform where data providers can list their data assets for sale, and data consumers can browse and purchase data that meets their specific needs. The Ocean Market supports a wide range of data types, including but not limited to, text, images, videos, and sensor data.
While the Ocean Market is a vital part of the Ocean Protocol ecosystem and is anticipated to facilitate the unlocking of data value and stimulate data-driven innovation, it is important to note that it is primarily a technology demonstrator. As a decentralized data marketplace built on top of the Ocean Protocol, the Ocean Market showcases the capabilities and features of the protocol, including secure and transparent data exchange, flexible access control, and token-based incentivization. It serves as a testbed for the development and refinement of the protocol's components and provides a sandbox environment for experimentation and innovation. As such, the Ocean Market is a powerful tool for demonstrating the potential of the Ocean Protocol and inspiring the creation of new data-driven applications and services.
Ocean Shipyard is an early-stage grant program established to fund the next generation of Web3 dApps built on Ocean Protocol. It is made for entrepreneurs looking to build open-source Web3 solutions on Ocean, make valuable data available, build innovations, and create value for the Ocean ecosystem.
In Shipyard, the Ocean core team curates project proposals that are set up to deliver according to clear delivery milestone timelines and bring particular strategic value for the future development of Ocean.
In exchange for locking tokens, users can earn rewards. The amount of reward depends on how long the tokens are locked. Furthermore, veTokens can be used for asset curation.
- As a veOCEAN holder, you get passive rewards by default.
- If you actively curate data by allocating veOCEAN towards data assets with high Data Consume Volume (DCV), then you can earn more.
When a user locks their OCEAN tokens for a finite period of time, they get veOCEAN tokens in return. Based on the quantity of veOCEAN, the user accumulates weekly OCEAN rewards. Because rewards are generated without human intervention, these are called Passive Rewards. OCEAN Data Farming Passive Rewards are claimable every Thursday on the Rewards page.
When a user allocates veOCEAN tokens to Ocean Market projects, then weekly OCEAN rewards are given to a user based on the sales of those projects. Since these rewards depend on human intervention to decide the allocations, these are categorized as Volume DF rewards. OCEAN Data Farming Volume DF rewards are claimable every Thursday on the Rewards page.
When users submit accurate predictions for the price of Ethereum to the Challenge DF program, they have a chance to win OCEAN rewards by being in the top 3 submissions based on predicted value accuracy.
The H2O non-pegged stable asset is a friendly fork of RAI. Whereas RAI uses ether (ETH) as its asset for collateral, H2O uses OCEAN. The price of H2O is managed by an algorithm that rebalances to bring the redemption price close to the market price and participants are incentivized to aid in this process. Traditional stable assets are pegged to a price such as 1 USD. In contrast, RAI (and soon H2O) are free-floating but typically settle around a price; for RAI this has been ~$3.
- Ungovernance: once governance minimization is finalized, POSEIDON holders will be able to remove control from any remaining components in H2O or, if needed, continue to manage components that may be challenging to ungovern (such as oracles or any other component interacting with other protocols).
Web3 (also known as Web 3.0 or the decentralized web) is a term used to describe the next evolution of the internet, where decentralized technologies are used to enable greater privacy, security, and user control over data and digital assets.
While the current version of the web (Web 2.0) is characterized by centralized platforms and services that collect and control user data, Web3 aims to create a more decentralized and democratized web by leveraging technologies such as blockchain, peer-to-peer networking, and decentralized file storage.
Ocean Protocol is designed to be a Web3-compatible platform that allows users to create and operate decentralized data marketplaces. This means that data providers and consumers can transact directly with each other, without the need for intermediaries or centralized authorities.
A distributed ledger technology (DLT) that enables secure, transparent, and decentralized transactions. Blockchains use cryptography to maintain the integrity and security of the data they store.
By using blockchain technology, Ocean Protocol provides a transparent and secure way to share and monetize data, while also protecting the privacy and ownership rights of data providers. Additionally, blockchain technology enables the creation of immutable and auditable records of data transactions, which can be used for compliance, auditing, and other purposes.
Decentralization is the distribution of power, authority, or control away from a central authority or organization, towards a network of distributed nodes or participants. Decentralized systems are often characterized by their ability to operate without a central point of control, and their ability to resist censorship and manipulation.
In the context of Ocean Protocol, decentralization refers to the use of blockchain technology to create a decentralized data exchange protocol. Ocean Protocol leverages decentralization to enable the sharing and monetization of data while preserving privacy and data ownership.
A tool that allows users to view information about transactions, blocks, and addresses on a blockchain network. Block explorers provide a graphical interface for interacting with a blockchain, and they allow users to search for specific transactions, view the details of individual blocks, and track the movement of cryptocurrency between addresses. Block explorers are commonly used by cryptocurrency enthusiasts, developers, and businesses to monitor network activity and verify transactions.
A digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies use blockchain or other distributed ledger technologies to maintain their transaction history and prevent fraud.
Ocean Protocol uses a cryptocurrency called Ocean (OCEAN) as its native token. OCEAN is used as a means of payment for data transactions on the ecosystem, and it is also used to incentivize network participants, such as data providers, validators, and curators.
Like other cryptocurrencies, OCEAN operates on a blockchain, which ensures that transactions are secure, transparent, and immutable. The use of a cryptocurrency like OCEAN provides a number of benefits for the Ocean Protocol network, including faster transaction times, lower transaction fees, and greater transparency and trust.
dApps (short for decentralized applications) are software applications that run on decentralized peer-to-peer networks, such as blockchain. Unlike traditional software applications that rely on a centralized server or infrastructure, dApps are designed to be decentralized, open-source, and community-driven.
dApps in the Ocean ecosystem are designed to enable secure and transparent data transactions between data providers and consumers, without the need for intermediaries or centralized authorities. These applications can take many forms, including data marketplaces, data analysis tools, data-sharing platforms, and many more. A good example of a dApp is the Ocean Market.
The ability of different blockchain networks to communicate and interact with each other. Interoperability is important for creating a seamless user experience and enabling the transfer of value across different blockchain ecosystems.
In the context of Ocean Protocol, interoperability enables the integration of the protocol with other blockchain networks and decentralized applications (dApps). This enables data providers and users to access and share data across different networks and applications, creating a more open and connected ecosystem for data exchange.
Smart contracts are self-executing digital contracts that allow for the automation and verification of transactions without the need for a third party. They are programmed using code and operate on a decentralized blockchain network. Smart contracts are designed to enforce the rules and regulations of a contract, ensuring that all parties involved fulfill their obligations. Once the conditions of the contract are met, the smart contract automatically executes the transaction, ensuring that the terms of the contract are enforced in a transparent and secure manner.
Ocean ecosystem smart contracts are deployed on multiple blockchains like Polygon, Energy Web Chain, Binance Smart Chain, and others. The code is open source and available on the organization's GitHub.
The Ethereum Virtual Machine (EVM) is a runtime environment that executes smart contracts on the Ethereum blockchain. It is a virtual machine that runs on top of the Ethereum network, allowing developers to create and deploy decentralized applications (dApps) on the network. The EVM provides a platform for developers to create smart contracts in various programming languages, including Solidity, Vyper, and others.
The Ocean Protocol ecosystem is a decentralized data marketplace built on the Ethereum blockchain. It is designed to provide a secure and transparent platform for sharing and selling data.
ERC stands for Ethereum Request for Comments and refers to a series of technical standards for Ethereum-based tokens and smart contracts. ERC standards are created and proposed by developers to the Ethereum community for discussion, review, and implementation. These standards ensure that smart contracts and tokens are compatible with other applications and platforms built on the Ethereum blockchain.
ERC-20 is a technical standard used for smart contracts on the Ethereum blockchain that defines a set of rules and requirements for creating tokens that are compatible with the Ethereum ecosystem. ERC-20 tokens are fungible, meaning they are interchangeable with other ERC-20 tokens and have a variety of use cases such as creating digital assets, utility tokens, or fundraising tokens for initial coin offerings (ICOs).
The ERC-20 standard is used for creating fungible tokens on the Ocean Protocol network. Fungible tokens are identical and interchangeable with each other, allowing them to be used interchangeably on the network.
ERC-721 is a technical standard used for smart contracts on the Ethereum blockchain that defines a set of rules and requirements for creating non-fungible tokens (NFTs). ERC-721 tokens are unique and cannot be exchanged for other tokens or assets on a one-to-one basis, making them ideal for creating digital assets such as collectibles, game items, and unique digital art.
The ERC-721 standard is used for creating non-fungible tokens (NFTs) on the Ocean Protocol network. NFTs are unique and non-interchangeable tokens that can represent a wide range of assets, such as digital art, collectibles, and more.
ERC-1155 is a technical standard for creating smart contracts on the Ethereum blockchain that allows for the creation of both fungible and non-fungible tokens within the same contract. This makes it a "multi-token" standard that provides more flexibility than the earlier ERC-20 and ERC-721 standards, which only allow for the creation of either fungible or non-fungible tokens, respectively.
The ERC-1155 standard is used for creating multi-token contracts on the Ocean Protocol network. Multi-token contracts allow for the creation of both fungible and non-fungible tokens within the same contract, providing greater flexibility for developers.
A consensus mechanism is a method used in blockchain networks to ensure that all participants in the network agree on the state of the ledger or the validity of transactions. Consensus mechanisms are designed to prevent fraud, double-spending, and other types of malicious activity on the network.
In the context of Ocean Protocol, the consensus mechanism used is Proof of Stake (PoS).
A financial system that operates on a decentralized, blockchain-based platform, rather than relying on traditional financial intermediaries such as banks, brokerages, or exchanges. In a DeFi system, financial transactions are executed using smart contracts, which are self-executing computer programs that automatically enforce the terms of an agreement between parties.
A Decentralized exchange (DEX) is an exchange that operates on a decentralized platform, allowing users to trade cryptocurrencies directly with one another without the need for a central authority or intermediary. DEXs typically use smart contracts to facilitate trades and rely on a network of nodes to process transactions and maintain the integrity of the exchange.
A strategy in which investors provide liquidity to a DeFi protocol in exchange for rewards in the form of additional cryptocurrency or governance tokens. Farming typically involves providing liquidity to a liquidity pool and earning a share of the trading fees generated by the pool. Yield farming is a type of farming strategy.
Liquidity Pools (LPs) are pools of tokens that are locked in a smart contract on a decentralized exchange (DEX) in order to facilitate the trading of those tokens. LPs provide liquidity to the DEX and allow traders to exchange tokens without needing a counterparty, while LP providers earn a share of the trading fees in exchange for providing liquidity.
Machine learning is a subfield of artificial intelligence (AI) that involves teaching computers to learn from data, without being explicitly programmed. In other words, it is a way for machines to automatically learn and improve from experience, without being explicitly told what to do in every situation.