Distributed Data Marketplace: Study Guide

Distributed Data Marketplace: Study Guide

Explain what is meant by “distributed” in a distributed data marketplace.

What are the roles of data sellers and data buyers in the marketplace?

What role do notaries play in a distributed data marketplace?

What is the difference between “on-chain” and “off-chain” operations, and give examples of each type of operation in a distributed data marketplace.

Briefly describe the role of smart contracts in a distributed data marketplace.

What is the function of a “data exchange” smart contract?

What purpose is a data ontology used for in a distributed data marketplace?

How do “batch payment” smart contracts address the costs associated with blockchain transactions?

Explain the atomic data exchange mechanism used in a distributed data marketplace protocol.

What role can delegates play in a distributed data marketplace?

In the context of a distributed data marketplace, “distributed” means that there is no central authority governing market participants, no central data repository, and no central funds repository. Data ownership remains with the data generator, and transactions take place directly between parties.

A data seller is an entity (e.g., an individual) that owns the data and has the right to sell it through the marketplace. A data buyer is an entity (e.g., a company) that wishes to purchase data from a data seller.

A notary is an entity that holds “ground truth” data and verifies the accuracy and validity of data offered on the marketplace. Before a data buyer purchases the data, the notary verifies the data to ensure it is not forged or fabricated.

On-chain operations are performed directly on the blockchain network, such as calling methods of smart contracts, while off-chain operations are performed outside the blockchain, such as messages sent between participants. In a distributed data marketplace, creating a data order is an on-chain operation, while the exchange of data between data sellers and notaries is an off-chain operation.

Smart contracts automatically execute the terms of an agreement stored on the blockchain. In a distributed data marketplace, smart contracts are used to facilitate the secure exchange of data and payments, ensuring fairness and transparency of transactions.

The “Data Exchange” smart contract allows data buyers to create a data order, specifying the type of data they wish to purchase and the price they are willing to pay. This order is then visible to potential data sellers, who can choose to fulfill it.

The data ontology provides a standardized framework to describe the available data on the marketplace, making it easier for data buyers and sellers to discover and exchange relevant data. It defines data entities, query models, and audience filters.

“Batch payment” smart contracts optimize the costs associated with blockchain transactions by bundling multiple payments into one blockchain transaction, thereby reducing the “gas” fees paid for each payment.

Atomic data exchange ensures that all transaction steps are completed successfully, otherwise the transaction is rolled back. This ensures that data buyers pay data sellers only after they have received the data and the notary has verified its validity.

Delegates can submit blockchain-based transactions on behalf of other market participants (such as notaries or sellers) in exchange for a percentage of token fees. This is useful if participants lack the necessary technical knowledge or resources to interact directly with the blockchain.

Distributed Data Marketplace A decentralized platform that allows data sellers and buyers to transact directly without the need for intermediaries. Data Sellers Entities that own data and want to monetize it. Data Buyers Entities that seek to acquire specific data sets. Notaries A trusted third party responsible for verifying the accuracy and validity of data offered on the marketplace. Blockchain A distributed and immutable ledger that records transactions and ensures transparency and security. Smart Contracts Self-executing contracts that automatically execute and enforce the terms of an agreement stored on a blockchain. On-chain refers to actions or transactions that are performed directly on the blockchain network. Off-chain refers to actions or transactions performed outside of the blockchain network. Data ontology A standardized framework that describes the types and structures of data available in the market. Batch payments A mechanism to optimize transaction costs by bundling multiple transactions into a single blockchain transaction. Atomicity refers to the property that all transaction steps must be completed successfully, otherwise the entire transaction will be rolled back, thereby ensuring fairness in data exchange. Represents an entity that performs blockchain transactions on behalf of other market participants. Ground truth data Accurate and reliable information used to verify the accuracy of other data sets. Encryption The process of converting data into an unreadable format to protect its privacy. Public key Part of a key pair used to encrypt data and verify digital signatures. Private key Part of a key pair used to decrypt data and create digital signatures. Hash A one-way function that produces a unique and fixed-length output for any given input