Ocean Protocol Presentation by CEO Bruce Pon 20171129

1. Bruce Pon
@brucepon
Building a new Data Economy that gives Power to People

2. What is more valuable? Your phone or the data inside?

3. Carpenter v. United States
https://www.aoc.gov/projects/supreme-court-west-facade-restoration

4. Detroit, 2010-2011

5. https://www.engadget.com/2017/01/03/samsung-goes-big-on-smart-fridges-with-ten-new-models/

6. http://blog.weatherby.net/2010/10/linkedin-social-graph.html

7. Source: AVA Retail

8. https://www.actemium.fr/smart-industry/smart-process/industrie-du-futur-rendons-linnovation-operationnelle-equipons-nos-usines/

9. Data is valuable for
Equifax Hack
September 7, 2017

13. We need to give more power back to people

14. Data AI Expertise
Who needs Data?

15. https://en.wikipedia.org/wiki/File:HTM_Hierarchy_example.png
Deep Learning is a technology from ‘50s
Combined with Moore’s Law
≈1950s algorithms on 1,000x more storage & compute

16. Deep learning
models with >> capacity
Error 5% .. 0.01%
Models with limited
capacity Error 25% .. 5%
Now add another 1000x
more data
Deep Learning loves Data

18. AI Start-ups & researchers Multinationals & governments
§ Have algorithms
§ ...but not enough data
§ Have too much data
§ ... want to monetize and scared to share
Disconnection
AI & Data haven’t connected very well

19. Data drives value
Source: Economist

20. Data can help solve humankind’s challenges

21. Data AI Expertise$¥€

22. Data AI Expertise$¥€

23. Now 2035
$4 T
Market Research
Personal
IoT
Health
Financial
$0.1 T
The Data Economy is poised to explode

24. The foundation of the Italian Renaissance economy
… Double entry bookkeeping

25. x

26. x

27. x

28. ● Multiple ledgers are required to be maintained - time-consuming, expensive
● Ledgers between parties are asynchronous, leading to errors and mismatches
● Captures only financial transactions, misses temporal aspects like momentum
and historical records
● Can be gamed and falsified by malicious actors – weapons of mass destruction
in the wrong hands
Disadvantages of Double Entry Bookkeeping

29. Blockchain technology is financial, technical and legal
innovation all at once

30. Bitcoin disrupts Banking

31. Digital
Cash
• Own your
own stuff
• Send
money
anywhere
in seconds
• Be your
own bank
• Digital
Gold

32. Ethereum disrupts VCs

33. A World
Computer
• Unstoppable
computer code
• Decentralized
applications
• Permissionless
capital
formation
“ICOs”

34. “Be your own bank”
“Value store for e-gold”
“Tokenize Networks”
“Company launch platform”
ETH:
Blockchain 2.0
BTC:
Blockchain 1.0

35. Validate transactions
Secure the network
Vote/fork on protocol changes
Validate business logic
Secure the network
Vote/fork on protocol changes
Public Utility Networks

36. Public
Permissionless, rent-free
Token is the reward for good behavior > self-sustaining
Utility
The service delivered is useful work
Proof of X drives down margin cost to produce X
Network
Communities: Horizontal, as opposed to vertical
Vision is shared, building blocks are co-owned
Public Utility Networks >> Blockchain 3.0?

37. Validate file storage
Proof of Space & Time
Vote/fork on protocol changes
Filecoin: A decentralized storage network

38. Prediction Markets Decentralized Compute Data & IoT Markets
Other Decentralized Data / AI Projects

39. Prediction Markets Decentralized Compute Data & IoT Markets
Moving from Projects to Public Utility Networks

40. Resource /
Service /
Utility
Block/Client
Reward
(aka Token)
Proof (or Stake)
Token
Hashing Power
Transactions
Business Logic
Compute
Storage
Knowledge
Privacy
AI/ML training/testing
Existence
Identity
Burn
Roaming
Bandwidth
...
PROTOCOL
Tokens provide incentives to build global public services

41. x
Whomever masters blockchain technologies will create
immense value and wealth

42. Let’s use blockchain to connect Data and AI
We can build a new Data
Economy that unlocks data
and value
… and gives power to people

43. Ocean Protocol
✓ Store the merkle roots of data or another structure for database compatibility
✓ Need to achieve and maintain global consistency in the data
✓ Provide an integration for our currently scattered clusters
Data keepers
# # # # # # # # # # # # # # # # #Chain keepers
BigchainDB clusters IndividualsDecentralized
storage
Any
database
Clouds
Ocean-specific
proofs
Ocean unlocks Data

44. Ocean Protocol
Data
Ocean is a backbone for a new Data Economy
Consumption Production Curation Privacy Discovery GovernanceDelivery

45. A data marketplace
for financial data,
and sharing of
trading algorithms
A marketplace for AI
kernels,
computations and
big data (PoCW)
Data marketplace
for personal data, to
be built using Big-
chainDB technology
A data marketplace
for ad data
A data marketplace
for streaming IoT
data.
A data marketplace
for mobile data
A data marketplace
for IoT data.
A data marketplace
for machine data
A marketplace for
ML models
Ocean connects Data and AI marketplaces

46. The Main Pieces
Blockchain Protocol Tokens
• Data as an Asset and
Intellectual Property
• Secure locking
mechanisms for
control, security, &
transparency
• Proofs of Space,
Time, Structure,
Query
• Framework for data to
be served and
consumed
• Incentivize keepers to
secure the network
• Token as the internal
currency - data
providers, marketplaces,
curators

47. Tokens

48. Equity financing & IPOs Crowdfunding Token Distributions
Investors Company
Investment
Shares in
company
§ Partial ownership of company
§ Rights to future cash flows
§ Value derived from ability of compa-
ny to generate cash in the future
Buyers
Investment
Products &
services
§ No ownership of company
§ Value derived from early access to
new products & services
Company Investors
Purchase
Tokens
§ No equity in foundation
§ Value derived from ability of
foundation to fuel token adoption,
which leads to value appreciation
of the token
§ SAFTE – simple agreement for
token exchange
Foundation
How projects raise money

49. • 1.41 Billion Ocean tokens, limited and
capped forever
• Ticker Symbol: OCN
• 15% (211.5M) OCN for exchange
• Hard Cap: TBD
• Public Token Exchange - date TBD
• Token Release: On network launch
Q1/2019
• Token Utility: No dividend, ownership,
voting or profits from the token. OCN is
inseparable from the network, protocol.
Ocean Token Distribution
For illustration purposes only

50. Token Allocation

51. 45% for Miners (Keepers)

52. Keepers
Secure network,
validate
transactions
Marketplaces
Provide
storefronts,
discovery
Curators
Refer, refine,
label and stake
on data for block
rewards
Data Providers
Publish data, set
pricing
Service
Providers
Compute,
storage, analytics,
etc.
Earning OCN

53. 15% available for Acquirors
Pre-Launch Distribution Public Distribution
≈ 105,000,000 OCN (6-8%) ≈ 105,000,000 OCN (6-8%)
Fiat, BTC, ETH ETH
Until Feb 28, 2018 After Feb 28, 2018
To fund the protocol, network, business
development, sandboxes
To fund the ecosystem, outreach,
developers and researchers
141M (10%) OCN held back for potential secondary offering

54. 20% to BigchainDB & DEX
each receive
10% OCN
over 5 years
in 6 equal installments

55. 10% to the Community & Ecosystem
Ocean
Protocol
Foundation
Developers / Startups
Bounties / Prizes
Outreach
Researchers “Data Credits”
Board / Advisors
The Foundation will receive 141M (10%) of OCN over 5 years in 6
equal installments to fund and incentivize the community and
ecosystem.

56. Token Supply Over Time
0%
10%
20%
30%
40%
50%
60%
70%
Oct-18
Dec-18
Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
Dec-21
Feb-22
Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24

57. Deployment of Proceeds from the Token Distribution
Ocean
Protocol
Foundation
Technology Partners
Administration
Ecosystem Developers
Bounties /
Prizes
Outreach
Protocol & network software
Marketplace, Business Development
Compute, Curation,
Analytics, AI, Tooling
Legal, Tax, Regulatory,
Governance
Token
Distribution
All funds raise go towards the ecosystem and
community

58. Disbursement of Proceeds from Token Distribution
10% and all funds after caps reached by
BigchainDB / DEX
45% up to a maximum of 25M€
45% up to a maximum of 25M€

59. Bruce Pon Trent McConaghy Daryl Arnold Chirdeep Singh
Chhabra
Don Gossen
Cristina P. Timothy Ley Tim Daubenschütz Dimi de Jonghe Dinh Xuan Nhat
§ Deep background in big data, blockchain, artificial intelligence and data exchanges
§ Industry experience spanning financial services, consulting, automotive, media and data
§ Proven track record of scaling companies and managing budgets in excess of $30 million
An experienced Ocean Protocol team

60. Government Partners Industry Partners Technical Partners
§ Provide indemnification for
companies
§ Enable regulatory sandboxes
§ Update legislation to support data
sharing
§ Provide data
§ Consume data
§ Act as partners during
development sprints
§ Expertise in governance, tax,
legal
and regulation
§ Provide technical components
for Ocean
To be announced soon
Lead Users & Partners to Kickstart a new Data Economy

61. Likelihood
Impact
LowMediumHigh
Low Medium High
Risk matrix
Price risk
Business
risk
Technical
risk
Regulatory
risk
Description
Price
Mitigation strategy
§ Price volatility
§ Total loss of
investment
§ Transparent investor
information &
communiation
Regula-
tory
§ Token bans
§ No liquidity on
exchanges
§ Close interaction with
government, compliance
§ Exchange roadshow
Techni-
cal
§ Cyber security
§ Technical hurdles
§ Independent audits &
security checks
§ Team experience & advisors
Business
§ Lack of adoption
§ Competition
§ Grow ecosystem rapidly
via partnerships
§ Cooperation with other
protocols
Some risks

62. How to participate in the Token Distribution
Pre-Launch Protocol Development
Global = Not a Security (Reg S) – KYC,
AML
US/CA = Security (Reg D) KYC, AML,
Accreditation
Follow on Slack, Telegram
Prepare datasets for publishing via
Ocean
Build marketplaces and tooling
Sign up at OceanProtocol.com

63. oceanprotocol.com
Join Us!
• Let’s fill the Ocean
• Create a new Data Economy
• Give people power and control

64. Ocean
Ecosystem
Ocean
Network
Ocean core software
Drivers for ID, compute, data storage Drivers for token & metadata storage
Ocean consensus
plugiin for BDB
BDB tokenized
read permissions
plugin for BDB
COALA
IP plugin
Identity/KYC Compute Data (blob) storage Token, metadata storage
Governments,
e.g. Estonia
Decentralized,
e.g. Authenteq
On-premise,
e.g. Amethix
Decentralized,
e.g. Golem
On-premise
(behind
firewall), e.g.
HDFS
Centralized
cloud, e.g.
AWS S3
Decentral.,
e.g. Filecoin,
Storj, Sia
Decentralized database
IPDB + BigchainDB
Data consumers
Data marketplace 1
DEX
Data marketplace 2 Data marketplace 3 ...
Data providers, custodians,
owners
Data referrers
1) Full technical whitepaper will be published on oceanprotocol.com
Ocean technology stack

66. Powering the Data Driven Economy
Trust in Data