Databroker DAO is building a DAO-framework on the Ethereum blockchain specifically for IoT sensor data to be sold globally. To some, this may appear to be very specific. However, IoT sensors will far exceed the total number of internet connected devices in use today. This means they will generate vast amounts of data. The way to correctly look at the Databroker DAO project is to imagine the world in 10 years time, not immediately. This is because due to a number of reasons, IoT sensors are still on the expensive side and not widely used.
The success of a project like Databroker DAO depends a lot on the industry trends, i.e. not the current state of the world, but how the world will be in a few years. Here are some of the main trends that will be helpful for the wider adoption of a protocol like Databroker DAO.
- The cost of sensors is dropping exponentially. This will make it easier to manufacture and ship cheap sensors all over the world.
- Internet bandwidth continues to improve, but is still limited.
- Storage continues to get cheaper, and will likely do so over the coming years.
- More and more sensors are connected to the internet, forming the whole ‘Internet of Things’ connectivity framework.
- A lot of work on self-driving cars will further reduce the cost of certain types of sensors for daily use, due to efficiencies of scale for manufacturing these sensors.
These are just some of the important trends that will drive more and more internet connected sensors. With more sensors coming online, there is going to be a vast swathe of data that is generated by these sensors.
An Alternate Revenue Stream
While the creation of data itself is quite interesting, the more interesting aspect is the use of this data in a global ecosystem. Companies are increasingly becoming global but need to think locally to stay ahead of the curve and serve their customers better. This will mean collecting local data and then working through the algorithms, like AI algorithms, to process that data to understand local markets better.
However, even for large corporations, covering every part of the planet is prohibitively expensive. How then can they get their hands on this data, which could become the lifeblood of their internal algorithms. After all, the world is moving towards a future filled with machine learning and AI algorithms, that need a huge amount of data to be trained and be accurate.
The Appeal of Databroker DAO Marketplace
In such a world, the appeal of a marketplace like Databroker DAO becomes pretty apparent. Instead of having to buy, plant, and maintain millions of sensors, companies can instead rely on existing sensors from everything from homes to cars. The companies of course will need to pay for this data, but it is cheaper than trying to do it themselves. Therefore it is a win-win really. Consumers get paid for the generated data, which can help subsidize costs of maintaining these sensors. Companies get the data that they need.
Companies here can be everything from multinational corporations to research institutes. We are moving towards a world in which data is the new oil. This will mean marketplaces for data can become globally important.
Photo Credit: Eric Fisher