How the Decentralization State of Crypto Opens Up a Huge Data Pool & Why This Would Change the User-Data Relationship?

How the Decentralization State of Crypto Opens Up a Huge Data Pool & Why This Would Change the User-Data Relationship?

Data by the users for the users We are all too familiar with the experience of feeling spooky seeing suggested recommendations on some apps after a certain topic was discussed in a conversation (as if our smartphone is eavesdropping on us 24/7) & having an algorithm at work flooding us with issues related to our previous view/watch isn’t great.

Web2 tech companies atrociously hoard our data for free & use it back on us — at the expense of our attention span, the bombardment of ads, and recommendations.

It’s all big data at play.

In the current digital world, the abundance of data is akin to the new gold .

The irony of the users who produce the data are being sold to with these data that are collected free of charge — with ads, content and whatever means that the current world can make out of this gold mine.

The familiarity residing with the frustration of “skip ads” and dopamine influx day-in and day-out — that’s the gameplay of the current social media towards the users.

For Web2 companies, what a time to live in — to be able to sit on top of such a huge pile of a gold mine, to be able to hoard data from users & sell products/services back to them.

However, as grandiose the idea of big data changing the world, in reality, the data that we see today remain gated, behind each company that helps to generate that. As companies are bound to act in the best interest of shareholders’ profitability & at the same time bearing the risk of breaching anti-competition law, any form of partnership or collaboration with competitors is not in the best interest of the companies, resulting in each of them protecting their data as a form of competitive advantage.

So, how can Web2 “big data” changes things when accessibility & coverage remain missing from all the data pool we see today? Data

The advancement of technology, adoption of smartphones & addiction to social media have all but created the influx of digital data, especially on individuals’ behaviors which are not possible a few decades ago.

The thought that big tech like Google perhaps know us better than ourselves sound scary & interesting but it is only possible with many of its products being widely used in their respective domain.

However, as much as Google is able to track certain data, they do not have visibility towards the bigger picture with the inclusivity of transactional-based data like e-commerce transactions or banking data.

So, this creates data clusters that are neither accessible nor has the coverage to show the bigger picture of how each user, segment, industry or landscape is performing.

But what if, there are data out there that is able to provide not just coverage or free accessibility, but could even provide real-time data that makes it even more valuable? Crypto Data

Crypto data that is transparent, accurate & real-time are only possible with blockchain, the underlying digital ledger technology that makes all the other crypto projects to be able to be in or at least in the progress of getting to the state of decentralized.

Any applications that run on Ethereum (the main dominant blockchain in the crypto space), will have their data captured on the Ethereum blockchain.

This signifies on-chain data.

On-chain data opens up a whole new avenue for the data world, given that it’s a free “gold” readily available for us to mine.

These data have to be extracted and processed into easily readable formats. Ethereum ETL is an open-source project that allows users to convert blockchain data into convenient formats such as CSV.Transactions that happen on the blockchain, will be captured on-chain, which is irreversible & transparent. In short, on-chain data will be able to provide data that previously was locked in each of the banks/institutions/companies like: Transactional data between seller & buyers Amount of asset (bitcoin, ether, etc) a user holds in his/her wallet Amount of asset that a crypto project hold Given that the crypto space has been booming, having on-chain data that provides the bigger picture of how the landscape is performing would help the users to determine where they want to stash their assets & which project is performing.Below are some examples of data for each sector within the crypto space. DeFi Decentralized Finance (DeFi for short) has been gaining traction in the past 2 years, in which 2020–2021 has been deemed as DeFi Summer. The total amount of DeFi assets locked as of 20th Aug 2022 amounted to $60.58 billion. Various […]

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