Modern computer and storage systems are enabling massive data to be stored, processed and communicated cheaply. Recent advances in Data Analytics as well AI technologies are making data more valuable than ever before. Companies generate and use a lot of data. Hence, big opportunities exist for companies to monetize their data assets. Data market platforms can bring together buyers and sellers of data by offering data catalogs and dynamic data pricing as well as transactional and programmable data trading services.
Data Markets have the potential to revolutionize the way businesses operate by providing a secure, transparent, and efficient system for transactions. Although the potential benefits of these markets are clear, businesses have so far been hesitant to adopt them due to concerns around complexity, cost, regulatory issues and security. Decentralized programmable data trading and pricing systems can allow businesses to trade data with each other in a secure and automated way. Data markets that utilize blockchains can enable businesses to set their own contractual data licensing rules and protocols for data sharing, which can help to reduce the risk of data breaches, improve auditability and data privacy.
FAME Horizon project aims to develop Federated Decentralized Trusted Data Marketplace for Embedded Finance. In the FAME project, TRAILBLU is participating in tasks on FAME platform requirements, specifications, architecture. FAME will deploy a permissioned blockchain to realize a decentralized and trustless infrastructure for recording auditable transactions for data markets. Smart contract based tokenization technologies will be used to represent access to data, data assets and to mint utility tokens that can be acquired with fiat money and later be used to facilitate purchasing, selling and trading of data assets.
Even though public blockchains have been around and used on a global scale for a decade, just like it took some time to develop regulatory frameworks when the Internet was born, in a similar fashion, it is taking time to develop regulatory frameworks for assets transacted on blockchains. Blockchains offer a lot of disruptive opportunities to enterprises. Enterprise adoption of blockchains is also taking time since enterprises must comply with legal and regulatory frameworks and need to address other important requirements such as identity management, privacy and confidentiality, performance and efficiency, integration with existing systems, data standards, interoperability and scalability. Very recently, European Union member states approved a regulation on Markets in Crypto Assets (MiCA)[1]. This is of worldwide importance, since it can be characterized as the world’s first comprehensive set of crypto asset regulation.
The FAME project will pay special attention to European regulatory as well as data privacy requirements and deliver a blockchain based system that will unite data markets under a federated structure. Such an approach is expected to bring significant benefits to businesses that want to adopt these technologies. Several leading companies and research institutions are participating in the project to ensure its success.
Businesses that adopt blockchain technology and decentralized programmable data trading and pricing can expect to see significant benefits in the long run. TRAILBLU can potentially play a role in the development of these technologies by bringing its experience and know-how on embedded software development, blockchain technology, software verification and smart contract programming to the FAME project.
In conclusion, blockchain technology and decentralized programmable data trading and pricing offer a secure, transparent, and efficient system for transactions that can help businesses to monetize their data, improve their operations and gain a competitive advantage in the market. The FAME project will demonstrate how these technologies can be used to create a more efficient and revenue generating market as well as secure regulation compliant systems for data.
[1] https://data.consilium.europa.eu/doc/document/PE-54-2022-INIT/en/pdf
