The Data DEX: An Integral Component to Exchanging Data
At Itheum, we’ve come up with a hybrid on/off-chain model for data brokerage. This model is the first of its kind that will allow creators to sell, verify and accredit data ownership on-chain while the data is stored off-chain.
A core part of this model is our Data DEX (decentralized exchange) which directly facilitates the peer-to-peer cross-chain trading of your personal data with others within the Itheum community.
Our hybrid model ensures first that the data is verified first, hashed then encrypted making it viable for advertisement and discoverability on-chain. After hashing and encryption, we then upload the data to a centralized, private, and secure location. While we understand that the whole idea behind Web 3.0 is decentralization, data storage had to be centralized to achieve data sovereignty and security as blockchains are fully open and transparent. We also offer the alternate choices of IPFS and Filecoin, both of which are decentralized storage solutions that the user can opt into should they want full decentralization of their data assets (although these choices are not recommended for the storage of sensitive personal data, as it’s very difficult to delete the data assets once created).
The $ITHEUM token, which is native to Itheum, will be used to trade data within our DEX. These tokens will also be useful for staking data and running our Data Coalition DAOs.
How will Data be Exchanged?
Currently, the Itheum Data DEX allows you to trade your data in two ways: through Data Packs or Data NFTs. We’re also actively exploring the indirect bulk trade of data via data Coalition DAOs.
- Data Packs — Essentially, a data pack will contain details about your data, such as a preview, date of creation, and link to where it can be safely downloaded. You will then be able to advertise the data pack on-chain via its unique hash. Currently, data is automated depending on the type of information and market demand; however, in the future, we intend to make it possible for traders to set starting prices for the data pack and also enable for “market discovery” for pricing that’s based on supply and demand.
- Data NFTs — As personal data is unique to the owner, we’ve made it possible to package and mint your data as an NFT. Unlike data packs, which don’t allow for interoperability between chains, Data NFTs can be sold on any compatible NFT marketplace, therefore offering a wider market for your data.
Data DEX Components
The following features work hand in hand to make our Data DEX more convenient and fully decentralized. We believe that these features will eventually drive our product to mainstream adoption.
1. P2P Trading
Traditionally, data was sold by larger data collectors to data consumers, often without your consent. Our Data DEX gives you full control of your data and notably allows you to exchange data in a peer-to-peer manner. We have taken advantage of smart contract technology to facilitate a seamless exchange of data.
2. Data NFTs
As personal data is unique, we have made it possible to package and tokenize your dataset as an NFT. This allows you to both reap the benefits of trading assets as NFTs and protect sensitive datasets, either in JSON or any other interoperable format.
3. Data Coalition DAOs
Data Coalitions are an integral component of our Data DEX, mostly because they allow for grouping of data, thereby making it more valuable. Your isolated data alone may not be as valuable as data collected from a group of people who share similar characteristics. For this reason, we developed a platform allowing for Data Coalitions that will function as DAOs (Decentralized Autonomous Organizations). These coalitions will be run by board members who have a stake/incentive, motivating them to act in the best interests of data owners in a coalition.
4. Personal Data Proofs
At Itheum, we’ve come up with a framework where Web2 data can be seamlessly transferred to Web3. This means that we’ve enabled smart contracts to access personal data, making it more effective for on-chain decision making.
5. Data Vaults
We’ve created a data vault where you can store your sensitive personal data by encrypting it using your keys for security. This data is then stored in protected storage, making it inaccessible to third parties. From there, you can then choose to include it in your other data packs during a sale to make the data more valuable as it contains more demographic context on the person who generated the data.
Overall Use Case
Currently, the data brokerage industry is worth well over $200 billion per year. Through the aforementioned features, we’re incredibly optimistic that we’ll be able to allow you (creators and users) to own and control your data while profiting from it as well. Additionally, you can stake your data in a coalition and receive $ITHEUM tokens in return, making our project and Data DEX very practical and attractive options. The above technical stack also forms the “core data protocol” that will power our N.F.Me ID (Non-Fungible Me ID) technology. which is our personal data backed and NFT-powered interoperable gaming and metaverse avatar product.