- May 5, 2022
- Posted by: DxMinds
- Category: Blockchain Development
Being on the digital business ecosystem, most of the organizations are generating piles of data on an everyday basis, and almost every business across the world has realized that data-driven decision serves better results. Traditionally, decisions were taken intuitionally and were subjected to risk, but data-driven decisions have provided more than 90% of success rate. Hence, businesses have started generating data from almost operations. As data-driven decisions are not done on trial and error method, rather it is dependents on various analytics and market research.
Countless organizations are working in the same business industry and hence same data can prove beneficial for various firms. But, most of the data generated by one company is kept aside after a single use. Data is a potential asset for any industry and this asset can be shared and used by different companies. But sharing data of a company can be risky and can hamper the credibility and success of a company, and the risk of data theft restricts companies to share their valuable data with other companies.
A decentralized data marketplace based on blockchain is the one-stop solution for all the above-mentioned data-related issues. A decentralized data marketplace allows a company to sell its data while keeping its security, transparency, and control over data at the highest level. This enhanced data security is pulling the attraction of most businesses towards decentralized data marketplace development companies in New York.
The scope of a blockchain-based decentralized data marketplace is limitless and it holds the potential to transform the business ecosystem and level up the effective use of data. If you are also willing to develop a decentralized data marketplace using blockchain then you must hire blockchain developers in New York to get the best results and also must dive deep into the details of a decentralized data marketplace to get the most out of your development process.
Decentralized data marketplace:
A decentralized data marketplace is a network of smart contract blockchains offering robust security allowing users to hold control of their data and can also monetize the same data by selling it on the most secured network. A decentralized data marketplace offers a wide range of attributes making your data management easier. The decentralized data marketplace can be summarized as a platform where organizations can easily sell or buy data without any manipulation, data tampering, and data theft. The use of smart contracts makes this decentralized platform more secure and guarantees the following aspects:
Your identity on this decentralized platform is kept secret unless you wish to disclose it, whether you are a buyer or a seller.
- Forward privacy:
Privacy of your data is kept at higher priority even it is sold once.
The data seller can see the usage of his data by the customer
The data seller holds complete control over the data access rights. Hence decentralized data marketplace offers a better privacy control policy over the data.
Attributes of decentralized data marketplace are:
- Independent of the third-party server host
- Robust security with least to zero chances of data tampering
- Nonmanipulated rating and recommendations
- Free from Market platform operators
- Peer-to-peer data sharing
- Seamless payment options
Applications of decentralized data marketplace:
Verification and access:
Decentralized data marketplace holds certified data, offers advanced data privacy, decentralized identity, and autonomous network. Hence, this decentralized platform offers robust security against data privacy breach
Buying and selling of data:
Using smart contracts, users can effectively buy or sell data with digital currency payments. Being a robust blockchain network, it offers a secure payment option with lesser transactional cost.
How does it work?
Using a decentralized data marketplace is as simple as managing a social media account and uploading your images and other data. Here are the working steps of a decentralized data marketplace:
- Users submit their data
- The decentralized platform will encrypt the received data and anonymize the data
- If a user wishes to buy any data stream, he can search for the same and can acquire the required data stream using a smart contract
- Post-transaction, the decentralized marketplace shares tokens for both parties based upon the agreed price.
- The decentralized platform shares incentives for the users to encourage the usage
Challenges of decentralized data marketplace:
The benefits of a decentralized data marketplace are limitless, but still, it has a few challenges also that implementing a decentralized data marketplace is a tough job. A few challenges are listed below:
- Unknown seller:
In traditional ways, you were buying data from a trustworthy person with whom you might be having great communicational terms and faith. But when you opt to buy data stream from a crypto-driven marketplace, you don’t have any information about the seller.
- Confidential data sale:
Almost 50% of data available on the internet today is stolen or manipulated data and unfortunately, decentralized data marketplaces don’t have an algorithm to identify stolen or confidential data.
- Data piracy:
One of the biggest challenges for a decentralized data marketplace is data piracy. In a centralized data marketplace, data is licensed by the buyers where sellers can only sell data once, whereas in a decentralized data marketplace anyone can copy the available data and sell it again.
- Limited data:
The amount of data on the internet is continuously growing and evolving with the growing trends and market changes, but it is impractical for a blockchain network to sell dynamic data because the transaction of every new piece of data is practically impractical for a blockchain network.
- Data quality:
Data quality is always a serious issue on the internet, regardless of the platform, it is available. A decentralized data marketplace is a vast platform with the widest array of data availability. Hence, it is a tough task for the buyers to determine the quality of purchasing data.
A decentralized data marketplace offers various benefits to buyers as well as sellers. It helps to maintain the security of the data while selling it online and also allow the seller to hold complete control over the stored data. It also has digital currency payment options to avail the users of easy transaction options. A decentralized data marketplace also has certain limitations but still, the scope of this platform is continuously growing with the growing trend of blockchain.