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October 2 2017

ICO Alert Report: DataBrokerDAO

ICO Alert Report: DataBrokerDAO

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What is DataBrokerDAO?

DataBrokerDAO is a peer to peer marketplace for IoT sensor data. So, buying and selling of data from IoT sensors. Co2 and PH levels in the air and ground, temperature, congestion, etc. The market for IoT sensors is huge, $600 billion a year in 2017 and expected to reach $1.2 trillion a year by 2019. Yet all this data is locked away in organizational silos and only used for its primary goal, which is quite a sunk cost. Despite this siloed ecosystem, there are over 5,000 companies worldwide active in acquiring just fractions of the available data and repackaging it for sale, currently a $150 million business. A lot of effort and mostly by large consultancy firms.
Besides these companies, the use cases that would thrive on commoditized access to this data are uncountable. Smart cities, agriculture, academia, automotive, and about every AI and big data company around.
Unlocking the sensor data in a secondary market is estimated to have a value to these secondary users between $30-$90 billion a year in 2017 and is expected to triple by 2019, following the growth of sensors from $9 billion to $30 billion in 2020. And this is where the DataBrokerDAO platform comes in, it provides data owners with a direct path to monetisation and data buyers with commoditised access to valuable data, powering the next wave in innovations and improving everyone’s life.
Roderik van der Veer, CTO and Co-founder

Presale Information
The presale is now live and ends on October 16. 2017 at 4 p.m. UTC. Five percent of total tokens (11,250,000) are available for purchase during the presale, and a goal amount of 9,375 Ether. The price per DataBrokerDAO token (DATA) is 1,200 per 1 Ether, and there is a hard cap of fifteen percent of tokens (33,750,000).

There is a discount of 20% during the presale and only Ether is accepted as contribution. Any unsold tokens will be sold during the crowdsale.

During the presale, users will be given a referral link. When others use the referral link, the user will receive additional tokens in the amount of 5% of the total tokens purchased by the new contributor the user referred.

Crowdsale Information
The crowdsale will start 1–2 months after the presale is complete, with a firm date and time to be announced by the team in the near future. 60% of the total tokens will be distributed during the crowdsale. The price per DATA during this crowdsale period is 1,000 per 1 Ether contributed.

Token Distribution Information
Tokens are distributed to users immediately after contribution. There are a total of 225,000,000 DATA tokens, and 146,250,000 will be available for purchase across the presale and crowdsale.

Allocation
5%: Presale
60%: Crowdsale
20%: Platform (reserved for liquidity needs for the token)
10%: Team members
5%: Contribution referrals

Use of Crowdsale Proceeds
50%: Business Development
30%: Platform Development
15%: Marketing
5%: Operating Expenses

Team
Matthew van Niekerk, Co-founder and CEO
Linkedin
Matthew has founded and exited two companies in Japan, then got his MBA in Belgium after which he joined a large financial institution where he performed a variety of roles ranging from COO of the consumer finance business line, to head of platform innovation for the brokerage and crowdfunding platform. In 2016, he left the bank and co-founded SettleMint. He also currently works for the website service business t0.com.

Roderik Van Der Veer, Co-founder and CTO
Linkedin
After Roderik built one of the largest ecommerce computer store sites in Belgium in 1999, he worked in the IT development sector, and as CTO, grew a traditional marcom agency into a digital powerhouse. He exited this business to focus on blockchain technologies when he co-founded SettleMint in 2016.

Els Meyvaert, Communications Director
Linkedin
Els worked as an account manager in various financial institutions until she moved back to her first love: communication. As account director, she handled communication for the largest FMCG group in Belgium before joining SettleMint. She founded The Agile Agency, a company focused on business strategy and internal efficiencies within teams.

Cassandre Vandeputte, Solution Analyst
Linkedin
Cassandre earned her stripes in the blockchain innovation labs at Accenture before joining SettleMint this year. She has her master’s degree in information management and business intelligence.

Social Media
Slack: https://slack.databrokerdao.com/
Facebook: https://www.facebook.com/DataBrokerDAO/
Telegram: https://t.me/databrokerdao
Twitter: https://twitter.com/DataBrokerDAO
Medium: https://medium.com/DataBrokerDAO
Bitcointalk: https://bitcointalk.org/index.php?topic=2113309.0
Github: https://github.com/DataBrokerDAO

Q&A

ICO Alert: How does the DataBrokerDAO token (DATA) function within the platform and why is it needed?

Roderik Van Der Veer, Co-founder and CTO: Commoditizing the access to sensor data means we need to enable micro-transactions. Buying one second from one sensor out of 30 billion, at high speed and with no or at least extremely small network transaction fees. And finally, a direct remuneration for each party involved in the ecosystem.
To do so, we need three key components:
1. A token with a large divisibility (18) at a significantly lower one-to-one rate compared to ETH, and with a lot more granularity than fiat currency can offer.
2. A token to be used in the state channels needed to provide immediate and no cost microtransactions.
3. A token that can evolve, grow, and be cloned over time since the IoT/Blockchain scene is not stopping for anything or anyone, which means that the features of the token need to change over time as well.
And, you guessed it, DATA is that token.

ICO Alert: How is the price of data set by those with IoT sensors? Are data buyers able to acquire this type of data in today’s environment, and if so, are they forced to purchase the data or is it free?

DataBrokerDAO: For the price setting, we rely fully on free market principles. The supply and demand for the data offered for sale will determine the price set by the sensor owners.
In today’s market, there are about 5,000 active companies in this space. Mostly large consultancy companies. Slow, pricey, small parts of the total market and generally not practical for smaller organizations.
Aside from these payed datasets, there is the open data movement. Mostly governments that expose data gathered by their sensors, and since those are funded by the taxpayer, freely distributed. This is not a sustainable business model in the long run.

ICO Alert: How important is it for the large telecom companies acting as network operators to allow for DataBrokerDAO to utilize their gateways? How does DataBrokerDAO plan on incorporating these large pieces of the data market puzzle without being viewed as competition, and thus pushed away from collaboration?

DataBrokerDAO: The network operators are crucial. While the marketplace is peer-to-peer, supporting, controlling, and managing the owners of 30 billion sensors is in no means practical nor feasible. Converting that many client to join the platform is equally difficult.
The path via the network operators is much more streamlined, as one client onboarded on the platform brings in a few million sensors. And these sensor owners already have a contract with the operators, so the management of these clients is transparent. The same holds true for manufacturers.
In regards to the competition, there is none. Sellers of data will, in a lot of cases, not even know there is such a thing as DataBrokerDAO. They will have a checkbox and a price field in their operator dashboard. For the network operator, this only brings in extra revenue, with little to no effort.

ICO Alert: Is there a marketing emphasis behind onboarding those who will be selling data? What’s the plan surrounding the creation of the ecosystem itself?

DataBrokerDAO: Without a good supply of data, a marketplace is a moot point. That is why our marketing efforts focus on the network operators and manufacturers that can bring large volumes in one go. We have been actively forming an alliance since early this year and are in the final stages before announcing the first members.
The drawback with targeting large players, is that we are working with multi-month enterprise sale cycles. This sale is needed to provide the leverage to carry is through these long negotiations.

ICO Alert: Imagine I am a farmer who owns an IoT sensor. What is the process I have to go through in order to sell my data on the DataBroker marketplace?

DataBrokerDAO: In the network operator model, he would check a box when signing the contract for the transportation of his data over the network, and be done with it.
In the manufacturer model, it would be a checkbox when setting up the sensor.
And finally in the direct model, he would either create an account and his sensor on the marketplace and use a shared API to push his data (direct or via IoT pipeline tools). Or he would deploy his own node and API, but we assume that this is only for large scale users for now.

ICO Alert: There are a variety of data marketplace related cryptocurrencies/ICOs. What makes DataBrokerDAO unique as a platform and in it’s roadmap to success?

DataBrokerDAO: The difference is that we focus only on the marketplace and not on replacing the entire nuts and bolts of the IoT ecosystem (nor creating a new blockchain) like Iota or Streamr.
The DataBrokerDAO marketplace is different since:
1. It is built to go into production this year.
2. It is built to interface with the large players in the ecosystem (manufacturers and network operators) in a non-invasive way. The only way to get market scale fast enough.
3. It focuses on being a complementary component in the current and future ecosystem, meaning in these two cases that Iota can function as a network operator in our schematic, and that DataBroker can essentially be the “marketplace” box in the Streamr schematics
Just to give some numbers, there are 9 billion sensors right now that work using the current “pipes.” By 2019, there will be 30 billion sensors. We do not feel like any of these “replace everything” companies can get sufficient market share to dominate the sector. And if they do, or are even a bit successful, we can integrate with them easily.
Our narrow scope allows us to be successful in the short term, not in the moonshot way

ICO Alert: There are various use case examples on the website. What do you believe is the largest, most reasonable use case for the DataBroker marketplace today?

DataBrokerDAO: Most interest has come from Smart Cities initiatives, AI companies, and academics. It is the Smart Cities, however, that I’m most excited about because if we can make every city, village, or street smart, the quality of life will significantly increase for us and our children. And that is something that makes me personally very motivated to be a small part of this evolution.

ICO Alert: How far along is the project today? What does the roadmap look like for the rest of 2017, and 2018?

DataBrokerDAO: The plan is to go to the mainnet this year, in production, with several suppliers offering data for sale.
Most of the development focus will go into the final form of the state channels, improvements we can use from the Byzantine and Metropolis forks, and in discovery, reputation, and curation tools in the platform.
The sales efforts will be grown significantly to form a growing alliance and get through the enterprise sale cycles.

ICO Alert: As a non-DataBrokerDAO question, we like to ask for unique predictions on the cryptocurrency and ICO space in the near future. Where do you see the industry in 3–5 years?

DataBrokerDAO: I really feel that, after the first wave of half-baked ideas have burned through their millions, that the ICO space will grow up and really look at business value. In the end, the success of the business will be the long-term value generator, not the short-term trading perspective.
On the industry itself, I believe that it will have permeated into every corner of our society with real solutions for everyone. I was lucky to grow up in the analogue eighties and I have seen first hand what the Internet has done for the better over the last 20 years. Blockchain will do the same, or even more, and in a fraction of the time.
But with great power, comes great responsibility. It’s the industry’s job to make sure the change it brings is for the better.

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View the DataBrokerDAO Website here.

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References
(1) DataBrokerDAO Website, Settlemint, (2017)
https://databrokerdao.com/

(2) DataBrokerDAO Whitepaper, Settlemint, (2017)
https://databrokerdao.com/whitepaper/WHITEPAPER_DataBrokerDAO_ENG.pdf

(3) DataBrokerDAO One Pager, Settlemint, (2017)
https://databrokerdao.com/whitepaper/onepager.pdf

Topics: Blockchain, ICO, Data, Cryptocurrency, Finance