Ocean Protocol:Public Utility Network

For Data and AI

Dimitri De Jonghe@DimitriDeJonghe

Head of Research - Ocean ProtocolBigchainDB, IPDB, ascribe, Interledger, Spherity

Centralized Economies

from

Silo-ingResources

I’ll only open my data set if I gain insights and/or profit from it!

The tragedy of the commons is an economic theory of a situation within a shared-resource system where individual users acting independently according to their own self-interest behave contrary to the common good of all users by depleting or spoiling that resource through their collective action.

Users Applications B2C Service $$$ Services

Consumer goods

E-commerce

…

ConsequencesA

pp u

sage

Dat

a ga

ther

ing

& s

ervi

ce p

rovi

sion

Dat

a tr

adin

g &

sel

ling

▪ Lack of data control and multiple versions of “you” on different databases

▪ No right to be forgotten

▪ No user share in ad revenue

Individual

How to farm Digital Me (d-Me)?

How online services “share” your data

Her

e’s

your

per

sona

l

dat

a

Roses are redviolets are blue

with silo and moatthe service reads you

And shows you adsfor flower shops

and tracks your clicksand never stops

It cares not thatprivacy's harmedmoney is green

so people are farmed

Twitter is cyanfacebook is blue

your friends are the productand so are you.

Common ObjectivesIncentives make people do stuffSelf-sustainingAnti-fragile

Decentralized Communities

from

PoolingResources

Blockchain Superpower:Get people to do stuff

By rewarding with tokens

Bitcoin goal: maximize security of networkToken rewards if: run compute to secure network

Economic Incentive for Bitcoin

Objective: Maximize security of network

• Where “security” = compute power

• Therefore, super expensive to roll back changes to the transaction log

E(Ri) α Hi * T

E() = expected value

# tokens (BTC) dispensed each

block

block rewards

hash power of actor = contribution to

“security”

Bitcoin goal: maximize security of networkToken rewards if: run compute to secure network

TerraHashes / sec

Ethereum: The World Computer

“Be your own bank”

“Value store for e-gold”

“Tokenize Networks”

“An ICO launch platform”& cryptokitties

ETH: Blockchain 2.0BTC: Blockchain 1.0

Public Utility Networks => Blockchain 3.0?

PublicPermissionless, rent-freeToken is the reward for good behavior > self-sustaining

UtilityThe service delivered is useful workProof of X drives down margin cost to produce X

NetworkCommunities: Horizontal > verticalBuilding blocks are co-owned, vision is shared

Decentralize the Reward Function (& Tokenize)

ProofStake

ReputationAttention

...

Proof of ...

Resource /Service /

Utility

Block/ClientReward

(aka Token)

Proof / Stake

Token

Hashing PowerTransactions

Business LogicCompute

StorageKnowledge

PrivacyAI/ML training/testing

ExistenceIdentity

BurnRoaming

Bandwidth...

PRO

TOC

OL

From Community to Utility PoolingPrediction/Knowledge High Perf. Compute Data & IoT

From Community to UtilityPrediction Markets Dec. Compute Data & IoT Markets

Know

ledg

e Po

ols

Compu

te P

ools

Data

Pool

s

DecentralizingData?

Decentralized Me (de-Me): Personal & Private Data

?DATA Blockchain

Self-sovereignty AttributionCommons

Data + Ownership[Blockchain] = self-sovereignty

But… Provenance & Attribution

Provenance of TITLE (IP) Provenance of COPIES

centralized application stack

FILE SYSTEMe.g. S3, HDFS

APPLICATION

PROCESSINGe.g. EC2, Azure

DATABASEe.g. MySQL, MongoDBBitcoin Blockchain?

PLATFORMe.g. AWS, Google App Engine, Heroku

CO

NN

ECT

NET

WO

RK

S e.

g. T

CP/

IP

HARDWARE

Towards a decentralized application stack

FILE SYSTEMe.g. S3, HDFSIPFS, SWARM

APPLICATION

PROCESSINGe.g. EC2, Azure, Ethereum, Hyperledger, Tendermint, Lisk, Corda

DATABASEe.g. MySQL, MongoDBBigchainDB, IPDB

PLATFORMe.g. AWS, Google App Engine, Heroku, Eris/Monax, BlockApps

CO

NN

ECT

NET

WO

RK

S e.

g. T

CP/

IP, I

nter

led

ger

ILP

e-Cash/e-GoldBitcoin, zCash, Ripple,

Blockstream, Multichain

HARDWAREIoTA, Riddle & Code, Chronicled, Sawtooth Lake

Immutability

Decentralized Control

Native Assets

Scalable

Queryability

Operationalized

TraditionalDatabases

Traditional blockchains

BigchainDB

“Big Data” + “Blockchain”- a blockchain database

Blockchain Consensus

Database Consensus

IMPLEMENT A 2 PHASE CONSENSUS

FEDERATION

Single Database

or

MongoDB RethinkDB

Database Options

Big Data Substrate + Federated Consensus / BFT

Users Applications 3th party services

Consumer goods

E-commerce

Automotive

Consequences

▪ Users and devices control their data and access can be provided and revoked

▪ Only one single version of your data

▪ Users get share of revenue generated from their data

Private Data

Access?

Data

…

Requ

est p

erm

issio

nSh

are

$$$

Bring YOUR DATA to the Service

Public ClaimsAccess?

Data /Permission

@BigchainDB @GETJolocom

Digital Twin / Twin of Things

Blockchain: a trust network for supply chains

Powered by IoT

32

Recordkeepingpaper, sms, email, calls, …

Inefficiencychange records, own versions/formats, disagreements

10

Tag unique ID to asset

Infoaddedto DigitalTwin

Data on Blockchain

Physicalpath

ofasset

Pathof

DigitalTwin

Factory Logistics Retail Customer End of life

Infoaddedto DigitalTwin

Infoaddedto DigitalTwin

Set DigitalTwininactive

Traceability across the supply chain with Digital Twin

Innovation as a Luxury

34

DATABASEIPDB

CLIENT SIDE APPBROWSER/JS OR MOBILE APP

A digital twin for Cars

Provenance+

Fraud detection

Data, AI & Tokens

1 ZB1

16 ZB2

2010

2016

2025

160+ ZB2

1) Source: Apixel2) Source: Storagenewsletter

Data is growing exponentially

1 ZB1

16 ZB2

2010

2016

2025

160+ ZB2

1) Source: Apixel2) Source: Storagenewsletter 3) McKinsey

% of data analyzed3

But only a small amount is analyzed and shared

Market value of data in 2030 GDP of Germany in 2016

Up to 3.8 trn. USD1 3.5 trn. USD2

1) Source: Ocean Protocol analysis2) Source: Worldbank

Unlocking data will open up Trillions in value

https://en.wikipedia.org/wiki/File:HTM_Hierarchy_example.png

Deep Learning: Neural Networks * Moore’s Law

≈1950s algorithms on 1000x+ more storage & compute

Deep learningmodels with >> capacity

Error 5% .. 0.01%

Models with limited capacity Error 25% .. 5%

Another 1000x more data

Deep Learning Loves Data

▪ AI needs data

▪ Without data, AI models are not accurate

▪ 150 fundamental use cases across all industry sectors identified

▪ AI advances 6x faster, if data is available

AI is starving for data

AI Start-ups & researchers Multinationals & governments

▪ Have algorithms

▪ ...but no data▪ Have data

▪ ...and want to monetize

Disc

onne

ctio

n

AI and Data aren‘t connecting

Have lotsa data(enterprises)

Have lotsa AI(AI startups)$$

Have lotsa AI(AI startups)

Have lotsa data(enterprises)

Have lotsa AI(AI startups)

Have lotsa data(enterprises)

Market Market Market Market

Market Market Market Market

A new data economy

Have lotsa AI(AI startups)

Have lotsa data(enterprises)

Market Market Market Market

Market Market Market Market

Ocean Protocol

A new data economy

Ocean goal: maximize supply of relevant dataToken rewards if: supply data, and curate it

Economic Incentive for OceanObjective: Maximize supply of relevant data• This means: reward curating data + making it available

• Where “curating” = betting on data. Reward taste-making.

E(Rij) α log10(Sij) * log10(Dj) * T *Ri

Expected reward for user i on dataset j

Dj = proofed popularity

= # times made dataset available

Sij = predicted popularity = user’s

curation market stake in dataset j

# tokens during interval

From AI data to AI servicesMotivations:

• Privacy, so compute on-premise or decentralized

• Data is heavy, so compute on-premise

• Link in emerging decentralized AI compute

Objective function: Maximize supply of relevant services=reward curating services + proving that it was delivered

E(Rij) α log10(Sij) * log10(Dj) * T *Ri

proofed popularity of service

predicted popularity of service

Ocean ProtocolPublic Service Network

Ingestion Service

Processing Service

Storage Service

Enterprise Service

Discovery Service

Ecosystem Service

Privacy Service

Compute Service

Ocean is a network of curated services. An AI services hub.

Availability Consumption Privacy GovernanceProduction

commons

Inter-OperabilityDiscovery

*Note: logos shown are examples and do not imply partnerships or integrations

Client

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Client Service

API

Keepers

Node

N2

N4

VerifierService

APIService

API

Proofask

bid

acce

ss

authorize

verifyaccess

chal

leng

e

1. Contract setup 2. Access Control 3. Verification

verify proof

CONTRACT 0x12345...

Lock: Consumer.fee Execute: Proof.validAbort: Timeout

resp

onse

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Service Integrity: Crypto-Proofs of Service

CONTRACT 0x12345...

Lock: Consumer.fee Execute: Proof.validAbort: Timeout

Data Source:● Tokenized access control● Curated

Decentralized Model● Community owned● Benefits for the commons

Service (Data + Proof)

Reward(Token)

CONTRACT

LockExecuteAbort

CONTRACT

LockExecuteAbort

Data Service:● Royalty Attribution● Contract-driven supply chain● Algorithms, labels,

visualizations, ...

% Royalty Reward(Token)

Reward(Token)

CONTRACT

LockExecuteAbort

CONTRACT

LockExecuteAbort

CONTRACT

LockExecuteAbort

CONTRACT

LockExecuteAbort

CONTRACT

LockExecuteAbort

CONTRACT

LockExecuteAbort

CONTRACT

LockExecuteAbort

CONTRACT

LockExecuteAbort

CONTRACT

LockExecuteAbort

CONTRACT

LockExecuteAbort

Autonomous DrivingSmart LogisticsIndustry 4.0Personalized HealthEnvironmental Monitor

Prototypes

Sandbox with Singapore Data Authority

What unlocking AI data & services

unlocks

Self-driving cars: fewer accidents, more mobility

>100x more data for health care research

Erode the data silos

Erode the data silos

Erode the data silos

Conclusion

AI data is siloed.AI services are siloed.

Let’s change the rules of the game with incentives.

Let’s democratize access to AI data & services!

Dimitri De Jonghe@DimitriDeJonghe

Dimitri De Jonghe

dimi@oceanprotocol.com

@DimitriDeJonghe

Project contributions:

oceanprotocol.com

bigchaindb.com

ipdb.foundation

interledger.org

ascribe.io

Thanks for listening

interledger