DeFi second half: If you encapsulate data into assets and enter the DeFi system, how can you still play?

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Token assets have been played crazy by the DeFi world. In the next step, Oasis Protocol said to help ordinary people encapsulate personal data into assets and earn income by DeFi.

Written by: LeftOfCenter

The DeFi ecosystem uses the composability and programmability of the blockchain to realize the use of perfect infrastructure for token assets, mortgage, lend, re-token into synthetic assets, and use decentralized methods to conduct transactions and confirm rights. A new gameplay of token asset flow is realized. However, the lack of high-quality assets in the DeFi world has become a bottleneck affecting the further expansion of the decentralized financial market.

At present, there are mainly two common practices for introducing DeFi system assets: one is to use cross-chain technology to open up token assets of different blockchain ecosystems and flow into the more complete blockchain network of the DeFi ecosystem. For example, many decentralized The BTC asset cross-chain protocol is working hard to introduce Bitcoin assets into the Ethereum DeFi ecosystem ; another attempt is to issue non-homogeneous tokens (NFT) to achieve off-chain assets on the chain and become a chain List the assets that can be used in the DeFi system.

Now, another new attempt to introduce new assets into the DeFi ecosystem is about to emerge: cryptography can be used to encapsulate data into assets and enter the DeFi system.

How to play this?

In fact, the reason is very simple. With the convergence and integration of information technology and human production and life, data has shown explosive growth and has become the most precious resource closely related to people’s daily lives. However, the data generated by users is owned and controlled by large companies and has become the main source of their income. As the true owner of the data, they are excluded from this system. In addition, the mechanism of a single enterprise to control personal data also leads to frequent security incidents. . It is not an exaggeration to say that the current data system in front of us is close to “all harm but no benefit” to ordinary people who actually own the data. Blockchain technology can not only solve the problem of “ownership” of data, but also solve the problem of capitalization of data owned by individuals.

In this regard, the blockchain privacy computing platform Oasis Protocol proposed a solution to reconstruct the data production relationship, using data as an asset, and constructing a new data production, management and consumption model, allowing users not only to re-control Your own data can even be used to earn income through staking and other methods-obviously, this is the simplest and common way to play in the DeFi world, opening up the possibility of turning data into on-chain assets and introducing DeFi ecological assets.

In addition, Oasis also designed the first smart contract that supports privacy computing, which can not only be applied to the use case of data sharing under privacy conditions, but will also have a revolutionary impact on decentralized finance, greatly reducing the current The over-collateralization rate that is common in decentralized finance unlocks a larger decentralized lending market and is expected to expand the volume of DeFi to 1,000 times the current volume.

Specifically, Oasis adopts a technical solution that separates the consensus layer and the computing layer, which can greatly improve the availability of DeFi and solve the current problems of slow transaction speed, high transaction cost, and low throughput on the Ethereum blockchain.

It’s time to learn about Oasis, a blockchain startup that has received much attention due to the support of many of the world’s largest cryptocurrency investment institutions, the exploration in the past two years and the new attempts that will be introduced to the market.

What’s wrong with the current Internet data market?

“The Economist” once compared data to oil in a cover article. The implication is that it is a precious resource in the new era. In the era of the digital economy on the Internet, constantly emerging user data has become an important asset to promote the modern economy. In fact, for most Internet companies, making money from user-generated data has become a fairly mature business.

Among them, online advertising is currently the largest personal data market. This model will display advertisements based on users’ personal habits and charge advertisers based on clicks. According to the consulting firm Strategy& data, the global business scale of the targeted advertising industry reached 178 billion US dollars in 2018. Not only that, by tracking thousands of data points of individual users, data agents can also establish a personal information business model that sells personal information to institutions such as banks and telecom operators. The industry’s annual revenue exceeds 21 billion US dollars.

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In addition, providing insights through data mining is also a good business. This is exactly how Facebook and Google make money. Although they do not directly sell data, they make money by providing advertisers with precision marketing by providing “who is the best target group for advertising”.

It can be said that constantly circulating user data is an indispensable element for the survival of most Internet companies.

However, the current status quo is that user-generated data is owned and controlled by large companies, and becomes the latter’s revenue model, and as the true owner of the data is excluded from this system. On the other hand, this mechanism of controlling personal data by a single enterprise can easily cause user privacy data to be leaked and data abused.

In January of this year, Microsoft leaked 250 million customer support records and PII (Personal Verification Information). Microsoft confirmed that its customer service and support (CSS) records were made public online due to a misconfiguration of the database. In March of this year, 538 million Weibo users’ bound mobile phone number data was leaked, and personal information was sold by hackers on the dark web. On July 16, the Twitter accounts of many celebrities and dignitaries and some companies were hacked, including Apple, Tesla CEO Elon Musk, Bill Gates, former U.S. President Obama, and U.S. presidential candidate Biden Other Twitter accounts have released information about digital currency phishing scams.

Frequent security incidents and privacy leaks have made users increasingly distrustful of the company. According to data from the Pew survey, more than 80% of respondents said they did not trust the use of data by companies.

For companies, they are facing the pressure to bear the responsibility of large-scale data breaches and the increasing pressure of personal privacy data compliance costs.

According to CNBC, an “economic impact assessment” prepared by an independent research institute for the California Attorney General’s Office shows that the state’s latest privacy law, the California Consumer Protection Act, may make the company’s initial compliance costs up to 550 in total. One hundred million U.S. dollars. Compared with large companies, the proportion of privacy compliance costs borne by small companies may be higher.

In addition, the existence of data ownership, data islands, and a large amount of underutilized data problems have led to a series of potentials that require large-scale use of data, such as large-scale smart cities, autonomous driving, and predictive analysis to better Confirm population health trends, etc.

As data becomes more and more valuable, issues surrounding data ownership, data value extraction, and large-scale data sharing risks and availability have gradually surfaced.

Oasis’ new idea: the business of activating data

In 2011, the World Economic Forum predicted that data will become a new asset class. However, judging from the status quo, this is not easy to achieve. The fundamental reason is that most data cannot be transferred or become a tradable asset.

In response to this problem, Oasis proposed a solution to reconstruct the data production relationship, namely data economics, which uses data as an asset to construct a new data production, management and consumption model, allowing users to re-control their own data. , You can even get income through investment transactions with your own data.

DeFi second half: If you encapsulate data into assets and enter the DeFi system, how can you still play?

In the Oasis network, the user’s data is owned by the user. At the same time, the user can choose whether to tokenize the data for sale or provide it to others. This means that the user can control the data by himself, retain privacy, and also sell the data. Earn revenue, this is the responsible data economy that Oasis focuses on.

Specifically, the user’s data will be encapsulated in a form of a capsule. The user owns and controls the data capsule. If you want to use the data, you need to meet certain conditions. The conditions are set by the user, such as a certain fee. Or value exchange can be used, and each use requires the user’s permission (multiple use requires multiple payments), which means that data can be priced as an asset to establish a possibility of obtaining a trading market.

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DeFi second half: If you encapsulate data into assets and enter the DeFi system, how can you still play?When there is a data request, a payment must be made before the corresponding data result can be received. At the same time, the data seller can pledge the data to obtain income if the data seller agrees to the data retrieval

In addition, because Oasis Network supports privacy computing, it allows users to share data while retaining the privacy of the data, which can unlock a variety of different use cases.

For example, the CryptoSafe platform developed by Oasis Labs in conjunction with Binance allows multiple exchanges to share malicious actors’ data to identify and prevent malicious actors. Because Oasis Network supports private computing, even if the exchanges share data for comparison, each transaction So also keep the data between each other private.

Nebula Genomics, another consumer-oriented gene sequencing service company, uses Oasis’ data framework to allow customers to retain ownership of their genomic data. On the other hand, the company can analyze the user’s data without viewing the original information. , The company hopes to compete with peers with a differentiated approach that gives users data ownership.

Most importantly, Oasis, a smart contract that supports privacy computing, can also be applied to DeFi to solve the problem of low capital utilization that has been unsolvable in open finance.

DeFi second half: If you encapsulate data into assets and enter the DeFi system, how can you still play?How do smart contracts that support privacy computing solve the problem of over-collateralization in DeFi?

Specifically, Oasis’ security privacy model allows the use of valuation models of various decentralized lending platforms to analyze user data and calculate the credit score of each user while preserving user privacy, which can greatly reduce the current situation. The over-collateralization rate prevailing in centralized finance improves the utilization rate of funds and unlocks the larger-scale decentralized lending market, which can expand the volume of DeFi to about 1,000 times the current volume, and the global decentralized lending market can reach The scale of 6 trillion U.S. dollars will eventually promote the transition of DeFi from trader users and early adopters to the mainstream market.

DeFi second half: If you encapsulate data into assets and enter the DeFi system, how can you still play?

In addition to unlocking a large number of new use cases, Oasis can also revolutionize DeFi in terms of performance. The scalability of Ethereum has always been a headache. With the popularity of DeFi mining, on-chain activities on Ethereum have grown rapidly, and the transaction processing speed of Ethereum is becoming slower and slower, and transaction fees are increasing. The more expensive it is, it can be said that under the circumstance that the realization of ETH 2.0 is indefinitely, low throughput, slow speed and high transaction fees become the bottleneck restricting the further development of DeFi.

Oasis’ unique technological innovation can greatly improve the usability of DeFi, including improving DeFi’s scalability and transaction speed, while reducing on-chain transaction fees. Compared with Ethereum’s only 13.3 TPS, Oasis’ throughput can reach 1000 TPS, which is approximately 75 times the former, and transaction fees will also be greatly reduced.

Understand technical principles: Separate the consensus layer and the calculation layer

Behind this series of extremely revolutionary industry-leading use cases is the unique technological innovation of the Oasis development team.

Oasis pioneered the separation of the consensus layer and the computing layer. Specifically, the Oasis network consists of two parts: the consensus layer and the ParaTime layer.

Among them, the consensus layer is composed of a set of decentralized validator nodes, which are responsible for running a highly scalable, high-throughput and secure proof-of-stake consensus. The ParaTime layer hosts multiple different parallel runtimes, each of which has Computing environments that share the same state.

DeFi second half: If you encapsulate data into assets and enter the DeFi system, how can you still play?The ParaTime layer supports customized functions, that is, you can customize and develop specific ParaTime to meet specific application requirements, such as EVM-compatible ParaTime, enterprise ParaTime that needs to be allowed, and ParaTime that supports privacy computing.

Such a separation of consensus and calculation allows multiple ParaTime layers to process large transactions in parallel, which means that if one ParaTime is processing a more complex workload while another ParaTime is processing a relatively simple transaction, then the former will not Slow down the latter’s speed. In addition, the difference detection function in the Oasis network makes Oasis more efficient than sharding and parallel chains.

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In other words, this layered processing method can not only solve the current problems of high transaction fees and low throughput that have plagued Ethereum, but also the efficiency of Oasis’s solution will be higher than that of sharding and parallel chain mechanisms.

In the world’s first private ParaTime designed by Oasis Network, nodes must perform secure calculations in TEE (Trusted Execution Environment).

DeFi second half: If you encapsulate data into assets and enter the DeFi system, how can you still play?

At this time, TEE acts as a black box assumed when the smart contract is executed. In other words, when the encrypted data and smart contract are sent to this black box, the data is decrypted and then processed by the smart contract. After the data is processed, it is encrypted and sent to the TEE. The data throughout the process is guaranteed to be private and will never be leaked to node operators or application developers.

This “confidentiality” feature can unlock a series of application cases involving personal sensitive data on the Oasis network, such as personal social security information, bank statements and health information related information, and if it is directly on the first-layer blockchain Using these data will have a great risk of leakage.

With the advent of 5G, the Internet of Things, and the Industrial Internet, data volume growth will explode, and user data privacy protection has become an urgent issue. Oasis combines blockchain and secure computing, and its innovative modular architecture can provide privacy protection for a variety of application scenarios. At the same time, it can also greatly release the potential of DeFi, which is expected to unlock a larger-scale decentralized lending market With the upcoming mainnet release, we look forward to seeing such a theoretical paradigm take effect in reality.

A few things you must know about Oasis network

  • Mainnet will be launched soon

The blockchain privacy computing platform Oasis Network has officially launched the mainnet Beta phase in early October. This is the first phase of launching the Oasis Network mainnet. It is also the mainnet and the establishment of a responsible data economy and a blockchain network with privacy protection functions. The last major milestone before the launch. This stage includes the finalized mainnet founding document and several functional features that were available when the mainnet was launched, but token transfers will be prohibited when the network starts. The Oasis Network mainnet will be launched in the coming weeks.

  • Participate in income farming on CoinList to get Oasis ROSE tokens

Oasis Network and CoinList have just launched a new mechanism called “Oasis ROSE Garden” to reward the community with the native token ROSE. Community members can contribute to the network and support the development of the Oasis network, while winning ROSE token rewards. The activity is divided into two parts. In “ROSE Farm” users can invest USDC or USDT to get ROSE, in “ROSE Cultivate” users can invest ROSE to get ROSE, the former is similar to liquid mining or Lockdrop, the latter is similar Staking for equity pledge. ROSE Farm allocates a total of 10 million ROSE, and the USDC or USDT invested will be returned in one month. ROSE Cultivate allocates a total of 20 million ROSE, and the invested ROSE will be returned in 5 months. In addition, users who participated in the first week can also receive an additional 15% of ROSE tokens from ROSE Farm reward tokens.

  • Star investment institutions gathered

Oasis Labs, the development team of Oasis Network, completed a round of US$45 million in financing in 2018. Its investor list is quite luxurious, and it can be said that it has gathered the most star projects supported by the world’s top venture capital institutions. The list of investors announced by Oasis Labs includes a16z crypto, the largest cryptocurrency investment institution in the world, Binance Incubator, Foundation Capital, Metastable, Pantera and Polychain. Coinbase co-founder Fred Ehrsam also participated in this round of financing in his personal capacity.