Data, Computing & Privacy
Building crypto thirsty Cryp2Gem community. Searching and researching for blockchain future disruptive innovators.
Cryp2Gem is a community-based research group. We are constantly researching and searching for future blockchain disruptive innovators.
Our Cryp2Gem Telegram Community group is open for everybody interested in learning and sharing knowledge about blockchain technology, cryptocurrencies and trading. This article is part of our research which is intended for the community. All the feedbacks and critiques are highly appreciated.
The author of this research is looking to invest or is invested in some of the included projects but tends to stay unbiased while researching and writing. This research is not intended as a promotion and is not part of any paid promotion. Cryp2Gem strongly believes in unbiased researching, sharing knowledge and transparency even when possibly invested, which will always be stated.
This is not financial advice; anything you read should not be perceived or conveyed as financial advice. The author takes no responsibility if you choose to invest in any project to produce a research piece. Cryp2Gem solely produces research to assist the cryptocurrency community and state when invested or looking to invest. It is significant for all to do their own due diligence when considering an investment.
The author of this article is invested in some of the mentioned projects in the following content. The investments are with API3, ANKR, Crust, Cudos, Oasis, 0Chain. Looking to possibly invest in Akash, Covalent, Pocket Network, Secret Network and The Graph in the future.
You can find previously published ALT Reports:
*Cryp2Gem ALT Report — Part 1: 2020: A Year in Review, Finance & InsurTech
*Cryp2Gem ALT Report — Part 2: Blockchain Platforms, Interoperability & Scaling
DATA
Data is gold. And we are after gold. Well, gems!
Jokes aside, data is what powers the world today. And centralised data handlers are in charge of huge amounts of data volume. Involving precious private data. Corporate but also yours and mine. No one asks you if they can use your data for research and analysis to boost their service, charge you more and try to be one step in front of the huge competition. Apart from our governments, there are probably 6 companies processing the most data: Apple, Google, Amazon, Microsoft, Facebook and Alibaba.
Distributed ledger technology offers new enterprise and personal solutions for data storage and processing, in a more cost-effective, transparent, decentralised way. Decentralised APIs, indexing services and oracles but mostly decentralised storage clouds and marketplaces just might become standard in the future. Blockchain is allowing hybrid private/public solutions with open and permissionless public blockchain connected with private sidechains. This way, the data can be processed and exchanged in a secure and private environment.
As soon as the global corporate world adopts and learns about the decentralised alternatives to process and aggregate data, blockchain data solutions' adoption will get valuable. C2G believes that decentralised data marketplaces, cloud storage providers and APIs are among the most important sections of the crypto and blockchain space.
DATA ORACLES, APIs and DATABASE INDEX
Chainlink has been named one of the 2020s most outstanding technology pioneers by the World Economic Forum (WEF). WEF will be exploring the importance of decentralized oracles for connecting existing systems to blockchains and how Chainlink provides a universal gateway for enterprises to adopt smart contracts easily. Chainlink, securing $5,1 billion in value, is the most widely used oracle network for powering universally connected smart contracts, enabling any blockchain to access external data sources. It is one of the pillars of crypto and blockchain space and one of the most important tokenized blockchain projects. Chainlink’s network purpose model is ultimately about enabling smart contracts to securely access external data sources — or oracles as it is known in blockchain terminology — in a decentralized manner while ensuring that the information can be trusted and has not been tampered with (source). With the continuous growth of DeFi TVL, the adopting and demand for oracle providers is growing.
Several other blockchain-based decentralised oracles like Band Protocol, Tellor, Razor, Witnet, DIA and many others but Chainlink have huge community backing, strong developers team, first-mover advantage and wide and deep adopting throughout the crypto space and with off-chain real-world clients. The demand for decentralised data feed oracles is huge, and there is plenty of space for others. It is always better to use several data feed sources to minimize false info and results. (source)
API3 is building a solution to have first-party oracles, which are oracles operated by the data source itself. This will be enabled by the Airnode protocol, which will also allow the usage of multiple Ethereum providers simultaneously. Airnode API is actually an oracle of cloud service infrastructure. API3 will be governed by the DAO and take on a unique approach compared to other data feed networks.
The Graph is currently the first option for indexing and a solution to optimize accessing your database and process queries more efficiently. Data access and processing is an essential part of all systems, software and devices. When you think about blockchain data and database management, it all becomes more difficult. Distributed ledger technology databases are exchanged and stored in a decentralized network of nodes and access of that scattered data is way more challenging. The architecture of The Graph’s protocol (detailed description) consists of open API subgraphs which can be composed into a united global graph of publicly available information. All those databases can be queried, indexed, processed and shared. The developers can use existing subgraphs or issue new ones for DApps. The Graph might become one of the best solutions for indexing in the future. A gateway to data on different blockchains is not easy to index due to the scattered information in a decentralised architecture on several nodes. Their queries marketplace will enable optimization of accessing databases and processing of queries and indexing and sharing, more efficiently.
The numbers of users, indexers and queries are growing weekly. The Graph just might become one of the pillars for Web 3.0 as an access point, a decentralised APIs alternative and a bridge to the blockchain databases.
If we consider some of the currently most widely adopted essential blockchain solutions like IPFS and Filecoin for storage, Chainlink for data feed services, Ankr for node deployment infrastructure and Matic for scaling, we can also mention The Graph for indexing in that context.
Covalent provides a unified API to bring full transparency and visibility to assets across all blockchain networks—Cross-chain API and indexing provider aggregating data from a public blockchain in real-time. There is now a way to index public blockchain governance/non-fungible token activity and calculate taxes on decentralized finance platforms makes Covalent blockchain niche special.
C2G Picks: Chainlink, API3, TheGraph, Covalent
Far from ignoring: Band, Tellor & Witnet
DYOR: Razor & Bonfida
The Graph — Research by Cryp2Gem
DATA EXCHANGE
We have mentioned data exchange on a hybrid blockchain with LTO and Aergo already. But what if you had an option to have a private and sensitive data marketplace powered and secured by the regulation and compliance protocols. AllianceBlock is allowing traditional off-chain finance to enter DeFi while providing layer-2 regulatory and compliance framework. The hybrid (POA/dPoS consensus mechanism) layered architecture of AllianceBlock protocols seems a great combination of privacy, security and decentralisation that would work perfectly for governing the introduced regulated data layer-2 solution. Currently building Liquidity Mining products which is an important part of their growing ecosystem. AllianceBlock will work with Ocean on a Proof-of-Concept, including generic Data Tunnel, dynamic datasets and the foundation for a decentralized, reusable & anonymized KYC service on Ocean Protocol. Their partner API3 will start playing a role in the Data Tunnel use case with Ocean, especially regarding trustless identity verifications. In contrast, their other partner ParsiQ will build the dataset, monetize it and publish it on Ocean data marketplace to their Data Tunnel or in another world through AllianceBlock’s Data Hub. Interesting future ahead for them. Recently AllianceBlock launched the first official Liquidity Mining Program on the Binance Smart Chain. Cryp2Gem is proud to follow the progress and developments of AllianceBlock since their early beginnings. You can find the latest open interview summary with the founders here.
Decentralised blockchain connection between AI developers and data owners for machine learning and AI purposes — protocol and network on which data marketplaces can be built to unlock data for sharing and selling — combining Ocean Protocol envisions data storage, computing and services solutions. There is a total of 274 data sets & unique data tokens published by 168 accounts so far. Ocean’s goal is to enrich data service marketplace, computing and data storage decentralized networks with connective tissue to create full solution supply chains. They have a powerful Enterprise partner ecosystem with companies like Daimler, dexFreight, MOBI, Roche, XPrize and Zuhlke. Amongst their Service partners and Ecosystem, Collaborators are Chainlink, Filecoin, Molecule, Outlier Ventures, SingularityNET, Web3 Foundation, Weave and others. Fully permissionless protocol and balanced governance model are planned for the near future.
C2G Picks: Ocean Protocol & AllianceBlock
AllianceBlock — Research by Cryp2Gem
AllianceBlock vs Cryp2Gem: Open Community Forum
DATA STORAGE
We want and need decentralised data storage. Google Cloud, Microsoft Azure or Amazon AWS/S3 aggregate global data. We need transparent and more cost-effective decentralised alternatives.
One of the currently most used is Interplanetary File System (IPFS) of which cloud storage service is widespread throughout crypto and blockchain space. Filecoin, built on top of IPFS, has raised $257 million in its ICO in 2017. Their valuation is highly exaggerated.
Arweave, promoting its permaweb and permanent storage is also getting adopted lately. Both Filecoin and Arweave enable decentralized, trust-minimized, censorship-resistant data storage. Arweave did also enable the creation of new kinds of dApps that rely on permanent, immutable storage.
There are plenty of other older projects working on decentralised data cloud storage solutions like SIA utilizing spare capacity from globally dispersed computers or Storj, which already has some clients and revenues. But actually, none of those two really got adopted in the last years.
Upcoming Crust Network implements the incentive layer protocol for decentralized storage and crust will connect other cloud computing and storage solutions. It is adaptable to multiple storage layer protocols such as IPFS for example. They might have found an interesting niche within the Polkadot Ecosystem.
Probably the most interesting but often overlooked project is 0Chain. Built from the ground up, 0Chain is a fast decentralized storage platform with built-in privacy, including private sharing. They are heavily focused on privacy and security enterprise markets. Actually, 0Chain is the only enterprise-grade decentralized storage. The enterprise-grade market is much bigger as even consumer and archival storage combined. Based on the testing documents, the requirements for use are minimal, and the chain is flexible and super fast. Interesting comparison of leading distributed storage providers can be found here: LINK TO ARTICLE.
Based on the founder Saswata Basu major differences from Arweave and Filecoin, they mostly focus on the archival data. At the same time, 0Chain targets enterprise markets but can easily do archive. Based on the founder's statement, the main advantages of 0Chain are also configurable high performance, security, availability, cost-effectiveness, built-in SLA and sharing of encrypted data.
0chain uses service providers for data exchange, storing blocks and providing storage service. Clients and applications can use 0Chain for a private, transparent, anonymous storage solution for photos, messages and also videos as it streams really well. The 0Chain protocol takes a different approach compared to traditional blockchains. Performing consensus, storing blocks, and data storage are divided into 3 separate service providers enabling high security and decentralisation.
The service is cost-effective, scalable and with a high level of security. 0Chain’s architecture distributes data across multiple servers, making it nearly impossible for a hacker to obtain all the keys to all the servers to gain access. Besides, users can have complete ownership, control and visibility of their data. For enterprises, data protection allows them to reduce dispute resolution, liability and audit costs. (source)
0Chain is already getting revenues from permissioned infrastructure. They will start with permissioned, followed by permissionless products. 0Stor is their current private product. Oracle, a partner, and 0Chain already integrated dStorage into Hyperledger Fabric which will become active after the upcoming launch of the mainnet.
To combat the recent Schrems II ruling and joint controller GDPR issues, enterprises can easily deploy a 0Stor Private on Oracle Cloud Infrastructure.
C2G picks: 0Chain
Far from ignoring: Arweave
DYOR: Crust Network
Some exciting projects are building decentralised platforms and protocols for geospatial data services (data collected by drones, satellites, cars, etc.) like FOAM, AI & ML database processing and understanding platform developed by Vectorspace AI or data validation and file protection platforms like the ones built by Tierion and VI-D.
CLOUD COMPUTING
Decentralised cloud computing might be the next frontier of blockchain. The demand for cloud computing services is rapidly increasing. The global cloud computing market size is expected to grow from $371.4 billion in 2020 to $832.1 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 17.5% during the forecast period. (source)
By adding to the network the billions of electronic devices that are spread worldwide, distributed computing is one of the keys to the mass-adoption of distributed ledger technology.
We have already covered the decentralised cloud data storage projects. One of the biggest cloud computer projects is surely Dfinity which collected a huge amount of money and had very favourable terms for early investors. They are yet to launch their public Internet Computer.
Ankr has made a lot of progress over the last 6 months and has pivoted to a crypto-native business solution with a real use case and actual revenues coming in. They have found a great niche and become one of the most adopted projects. They have become a pillar of the crypto space with their easy to use node deployment infrastructure.
Node operators can utilize idle cloud resources from high-specification data centres to run blockchain nodes, which are easy to access and deploy in just a few clicks.
Ankr provides a management platform for cloud computing resources, building an ecosystem of resource demanders, resource providers, application developers, consumers, and more. Its team believes that cloud computing is the future. Instead of being monopolized by tech giants like Amazon AWS, Google Microsoft Azure and Alibaba Cloud, it should be affordable for everyone. Ankr is building a marketplace for container-based cloud services using shared resources. Ankr will provide developers and enterprise clients with the ability to deploy 100+ types of blockchain nodes. Ankr aims to provide a pragmatic business solution, where node operators can utilize idle cloud resources from high-specification data centres to run a variety of services, such as running blockchain nodes. In contrast, data centre owners monetize their idle resources through the Ankr cloud platform. (source)
Stkr, developed by Ankr, is a decentralized protocol and platform that combines staking and DeFi, implementing traditional staking elements with non-custodial staking, micro pools and decentralized governance. The protocol will bring benefits to staking, in a way that Ankr has done for node hosting with removing the barriers of entry, simplifying participation and opening staking up to everyone, without depending on any centralized authority. No new token introduced — Stkr relies on ANKR. (source)
Current statistics found on the web site: 50+ protocols supported and 8000+ nodes deployed. Such adopting is rarely seen within young crypto space.
One of the most interesting decentralized marketplaces for cloud computing resources is being built by iExec. They have an interesting partner ecosystem with the IBM cloud, Intel, Ubisoft, and others and are part of Enterprise Ethereum Alliance, Confidential Computing Consortium and Industrial Internet Consortium. They were also selected by the European Commission to implement a software ecosystem for the Next-Generation Internet in Europe.
Akash, built with Cosmos SDK, is also building a peer-to-peer (P2P) decentralised cloud computing marketplace. Developing hardware called Supermini will offer more cost-effective cloud computing, allow complete privacy, and sovereignty over your data. Supermini will be a plug and play device. One can run a node with Supermini on an Akash DeCloud and earn passive income offering Supermini’s unused compute power. Akash partnered with Interchain Foundation to accelerate the IBC interoperability protocol development and maintain and build the relayer for IBC. Akash is already reaching out to other blockchains in the Cosmos Ecosystem. They want THORChain node on Akash. Akash might become a node infrastructure for the Cosmos environment.
Another upcoming decentralised global computing network, Cudos, provides scalable compute solutions to provide secure layer 2 computing capabilities to blockchains and improve cloud services offerings. However, connecting the two, providing a novel layer 3 to blockchain networks for the first time, allows them to run any compute jobs seamlessly integrating its cloud solution to the blockchain one. The Cudos network comprises smart contracts that act as compute oracles, connecting blockchains to secure external sources in a decentralised way. By allowing smart contracts to request off-chain computation, Cudos offers a Turing-complete solution which can run code in any language, such as Python, Go or C++.
The connection to the outside world is made via the Cudos Validator Nodes (CVNs), one of the main pillars of the Cudos network. Blockchain developers can choose through the Cudos smart contracts the decentralisation level that they want, by selecting how many CVNs should receive and run the desired code. This gives developers the power and freedom to choose and select the most appropriate settings and configuration for each job.
Developers pay quite a lot to different centralised API providers and infrastructures like Infura and Alchemy and AWS to use their services. Pocket has a unified and multi-chain API solution which might save quite some time and money.
“What matters is who provides the best service and the cheapest service, which is what we aim to do,” said Jack Laing, Governance Lead of Pocket Network.
Pocket Network is a decentralized relay infrastructure designed to connect any app, to any blockchain, from any device. Pocket is providing a simple to use, cost-effective layered relayer infrastructure. The protocol is comprised of App, Nodes and Network layers. The data/API request is sent from a DApp to the targeted blockchain with the nodes' assistance. The network layer provides the protocol rules, governance, record tracking, and economics for nodes and applications. Since the launch of the Mainnet in the 28th July 2020, there is speedy growth in demand and issuance of API requests. In August Ethereum based DApps have requested almost 2,8 million relays. In the first week of September, there was already 6,5 million relays served and validated. That makes 1 million requests per day currently. They have almost tripled the number of relay sessions in just one week.
The queries and transactions are enabled with the decentralized relay infrastructure of node operators and infrastructure providers. The SDK will allow easy node deployment as well as simple entry and use for developers. The cost reduction will be desirable and effective as it will supposedly be even up to 10x more cost-effective than the costs of existing centralised solutions. So Pocket will be saving developers time and money.
C2G Picks: Ankr, Akash & Pocket Network
Far from ignoring: iExec
DYOR: Render Network & Cudos
Cudos — Research by Cryp2Gem
Pocket Network — Research by Cryp2Gem
PRIVACY
Decentralised cloud data storage and computation services need privacy layers and protocols. Finance, enterprise, healthcare, and personal data often need to be exchanged safely and privately.
Secret Network is a privacy protocol for decentralized computation of sensitive data with secret contracts feature. Secret Network is the first-ever layer 1, privacy-enabled blockchain, featuring “secret” smart contracts with encrypted inputs/outputs/state. They run a mainnet with 50+ validators (source) which allows the creation of secret versions of ETH and ERC-20 tokens as Secret Tokens (SNIP-20 standard) for private transactions. Other secret bridges will follow. Secret Network might become a front-running resistant, private-by-design, cross-chain DeFi ecosystem. It offers a unique platform to build censorship-resistant applications that keep data encrypted, using TEEs (Trusted Execution Environments) to conceal data from the network. (source). Bridge mining will be delivered soon and incentivize users who lock their ETH and ERC-20 tokens on the bridge.
Enigma team is one of the many entities working on Secret Network. Enigma was fined by the SEC in February 2020 and had to return $45 million to 2017 ICO investors and pay $500k fine on top of that. ENG tokens could be exchanged to Secret’s SCRT tokens. The Secret Network is a decentralized sovereign network run by independent validators and delegators and shouldn’t have any issues with the SEC.
“Enabling programmable privacy is one of the biggest opportunities for the decentralized web. Secret contracts and Secret Network set the stage for this next exciting step in building out decentralized systems in general, and blockchains. By clearly defining the problems, outlining possible solutions, and clarifying current misconceptions about privacy and blockchain technology, we hope that we will more easily converge on real solutions. After all, to admit we have a problem is part of the solution already.” Guy Zyskind — CEO and cofounder, Enigma (source)
Intending to build tools to share and control data in an easy, secure and private manner Prof Dr Dawn Song, an award-winning professor at the University of California at Berkeley, founded Oasis Labs in 2018. She wants to build an ecosystem where data privacy exists online, is well protected and kept anonymous. Oasis is building SQL query and indexing tools, B2B private data marketplace, user Privacy-as-a-Service (PaaS) integration and the self-serve Parcel SDK allowing developers to easily access the Oasis Network and leverage confidential compute to build their own private-first data tools and applications. Oasis Labs is backed by well-respected investors including Andreessen Horowitz, Accel, Binance and many others. (source)
We have mentioned Matic and Skale as two important layer 2 scaling solutions for the Ethereum Ecosystem. Another layer 2 solution built on Ethereum, the NuCypher Network, is a privacy layer using proxy re-encryption (PRE) to provide decentralized access controls and key management. Applications, data systems or marketplaces, can use NuCypher as security infrastructure for sharing data. NuCypher introduced WorkLock, a novel node distribution mechanism that was used to launch the network. Participants had to lock ETH to a smart contract, receive NU tokens to run NuCypher nodes, and receive fees and rewards in return for strengthening the network.
C2G Picks: Secret Network
Far from ignoring: NuCypher & Oasis Labs
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