# OtterTank | Data Tunnel | September 2023 Edition - Channel: [CryptoCanal](https://streameth.org/cryptocanal) - Date: 2023-10-07 - Duration: 26:38 - Topics: People & Blogs - Watch: https://streameth.org/watch/yt-YVRWFZulyaw - YouTube: https://www.youtube.com/watch?v=YVRWFZulyaw ## Description Data Tunnel: decentralized data marketplace, unlocking the hidden potential of data and making it easy for users to access and use. OtterTank is an in-person pitching stage in the center of Amsterdam. Welcoming crypto-curious, developer, investor, marketing, VC folk to mingle and attend presentations of young projects! Apply to our January edition! https://forms.gle/XJyNSQwepot2U2Xs7 - Connect with our community of devs, product managers, VC’s, angels and more. - Get ready for the real world. - Get critical feedback and inspiration. - Receive emotional and marketing advice from CryptoCanal & have a video of your polished pitch. Our Judges: Experienced, knowledgeable and fair.e ready for their critical input. Thijs van Boven - Digital Asset Trader at VanEck. Justin Bons - CIO & Founder at Cyber Capital. David Truong - Aave Grant DAO, developer, Truong.VC. Sterling Schuyler - Copy and content writer for emerging fund managers & crypto enthusiasts, Founder Added Value Agency. Upcoming OtterTank events: 31st January 2024 24th April 2024 🌷 Meetups sponsored by Bitvavo. 📸 Photographer & videographer Margherita Agostini. CryptoCanal offers education, event and consultancy services for the crypto industry and we're not afraid to be political. We organize ETHDam, an annual conference and hackathon in the heart of Amsterdam. Follow us on Twitter and join our Telegram group for the daily updates. https://twitter.com/CryptoCanal https://t.me/CryptoCanalCommunity ## Transcript [Music] all right thank you so much everybody for being here for our first edition of uto tank for those who are not used to our usual format we usually just have drinks so now we wanted to spice it up a little bit and give a stage for startups and we were really inspired after organizing e them uh our annual hackathon and seeing all these projects you know hack for the weekend have a good time and then where do they go what happens after that so in that Spirit we thought it's time to give them a stage and dve is going to be joining us as well so we'll have four uh presentations tonight from different uh projects that we selected please um we have very important for people on stage we're going to be reviewing and asking the hard questions um they have little you know boards with them as well they'll have their final grade as well um so tonight first the presentation they have five minutes then the judges have their moments you will also have your moment uh we you can all join us on slido it's the usual place for a question and the the code for tonight is auto T and you'll find it and I'll be looking at your questions and uh that's it thank you so much for for being here for supporting all these startups I would like to welcome to the stage data [Applause] tunnel okay great to be here uh with all of you during this uh difficult be Market still full room so that's great to see uh my name is Daniel um and I represent uh the data tunnel oh that's a bit too far let's give some time for slides so and actually I'm not only here to talk about blockchain but also data next slide please so did you know that are staggering 97 zettabytes of data is waiting there to be analyzed and monetized that's a staggering 90 billion gab of data 80% of Enterprises have diable data and the majority of these Enterprises even want to monetize this data with all these opportunities out there now with AI why aren't more Enterprises monetizing their data next slide please according to us the answer lies in the extremely fragmented data ecosystem and like you can see on this slide every player here is actually focusing on a niche and this often increases complexity and complexity increases cost cost makes sure that there is a hesitance to start even this do monetization process it's not seen as an opportunity anymore next slide please it's very ironic we're drowning in data data wor billions yet Enterprises seem to be caught in a paradox this Paradox is that they are not able to monetize their data they're reaching information yet poor in actionable inside next slide please at data tunnel we are on a mission to to make data easier to share easier to find and easier to monetize we want a less fragmented data ecosystem an ecosystem that's more inclusive and interoperable all powered by blockchain technology next slide we do this by focusing on a few core values we make it very easy to monetize data and thanks to blockchain technology you can work together with others and monetize the data everything is checked on the blockchain and revenue is fairly disent next slide please but data quality is also very important and that is why we use our community of data Enthusiast to contribute to the metadata to improve this data everything is again checked on chain and revenues are fairly distributed next slide please learning how to code is not for everyone but finding information in data is very important nowadays that is why we have also created a low code um uh rapid development environment to let you analyze uh the data clean it and combine the data sets all for non teep users and of course Enterprises are very important to us because we want to help them start the Journey of data monetization but they have the requirements for data governance and we make it very easy for them to share which data they want to some of the data to their trusted partners and some publicly and again it's all powered by by blockchain technology and due to blockchain technology they can trust that who has access has really access we're going to launch the data tunnel in about a month and we have a lot of exciting things coming up for the coming years we want to integrate large language models and also support different data formats next slide please yeah almost done that's it that's it you have five minutes okay [Applause] be horrible you have a mic next to you Sterling have to you you can also introduce yourself sure I'm uh Justin bonds I'm the founder of cyber Capal all right nice to meet you too so um first of all I'll say um I like the use case so the use case to me makes um a lot of sense to to me actually um I do Wonder though um why you need a blockchain for this and I would even question if a blockchain is even necessary um the reason for that is you know how do you keep the data private um you know you also because you know this is mostly B2B um I assume um you know this would all require like kyc and and wh listing and all of these things and um basically if you try to build this on a blockchain you'll uh you'll inherit none of the advantages and all of the disadvantages so this to me seems more like a kind of traditional service company in web 2 as opposed to web3 and by you know adding blockchain I don't see what you know your you're gaining you're actually losing out I think more so if anything else especially since companies would be weary to work with blockchain you're just adding extra challenge so that would really be be my main cique I think um to start with at least much how long we have but I'll pass it on okay can I respond to that or oh yeah sure sure please go ahead yeah so yeah how long do we have for this 15 minutes oh that's your questions cool cool cool yeah so um why we use actually blockchain technology um is for the administrative needs when you start working together with data um it's very easy to track where the revenue is going and when you pay you can split this Revenue very easily and that is very much the use case for blockchain technology but in that case you're just using cryptocurrency as a means of payment on top of a traditional service yes but when you publish the the data set you get digital representation of the data set and that is kind of Fairly split if you are for example uh publishing data and I contribute to this data I get a a fragment of this nft and then when someone else is paying you I get part of this Revenue right but this is all on a whd listed kyc centralized system this is uh we can do also kyc our company has zero knowledge technology for kyc so you can say You're Just in bonds I don't just don't have to know it yeah uh you just can tell you can verify that the data you publish is from cyber capital for example yeah but I mean the verification depends upon the attestation of the system that you're building on so it's I mean it's essentially still a trusted and permission system well you do it on a on a permissionless uh uh blockchain I mean uh the fact that you have to go through a verification process doesn't necessarily make it centralized no but it does if you build it on a centralized system right yeah but we're not we're building this on top of avalanche Network okay so subchain yeah and then you control the consensus of that subject well uh you can have a validator you can run a validator right so and then it decentralizes more yeah but I mean the whole system is still permissioned because you're in control of it you're doing the kyc you're you're doing all the compliance you can't really build compliance into a decentralized system right and these companies will require compliance we we are convinced that we can build a certain amount of of compliance in the system we have a rule engine that allows you to set certain rules to who you want to share this data and this can be executed basically on chain yeah I'm I'm skeptical that you can achieve that but but I would love to see you pull it off I think I've taken upud let's hear from the other judges I have I have a related question um because I had the same question but I'm also wondering have you talked to anyone who who wants this solution and is willing to try it yeah um sadly I couldn't finish the slid but if you can I still put the slice on we have a a few ecosystem Partners you can go ahead and just share them yeah so um we have a partnership with grunch base and another company called SSA group and they are are going to start publishing their data on uh our data tunnel from inception uh last week I uh had a talk with the prospect that was very enthusiastic about the product and is also ready to publish on our uh data T platform uh so already some initial truction and cuz like I paid for crunch Bas I pay to access that data so I'm not sure what their incentive is to to share the data with a platform like yours yeah that's a a great question um actually they want to go after different uh different target market and uh we can also uh sell just part of the the data set and you don't have to pay them for full subscription anymore and well crunch Bas was very interested in the use case to only sell parts of their data to people so yes some questions here T from Van um yeah I just um I wanted to ask something about the um the data um where do you store the data is one of my questions I have yeah so we have two models uh currently you can either upload the data and then it's stored on our uh Amazon instance or uh we're currently also Building Technology that's why it's also called the data tunnel that you can literally tunnel the data so you can leave the data on premise you're from V you want to monetize your data keep it on your servers just tell us which data you want to uh publish and then we literally someone on the other side can run the query towards your uh in and how how are you going to have enough data on your platform because you have to you match supply and demand right uh I saw some protocols ocean protocols a good example I think they lost all their users because there was not enough data on the platform uh so how are you going to ensure that there's enough supply of data first of all and then how are you going to onboard use so what kind of data is Val aable to use in crypto yeah so um we're not necessarily only focusing on on on users in crypto um but we will also publish some crypto data there so that might be interesting for the the crypto community uh but currently we're very much focusing on training data for AI because we identified there's a lot of Market potential there with the boom happening uh currently uh so we're going after those and um yeah we have different different data sets I mean we need to start somewhere and indeed bring Supply demand together uh ASA group has for example lot of Amazon data well you can think of a lot of use cases uh competitor analysis uh based if you want to bring a new TV into the market great do you have any idea what kind of fees you are charging on this data so if I'm if I'm correct the total n of Market in 2040 is assumed in 15 billion so maybe decentralized is taking 1% of that 150 million y that's that's we we estimate a bit larger because we have also there's already a existing market for traditional data marketplaces so for us we are around we estimate 275 million uh with this now this Market growing in decentralized well yeah in decentralized we we we in the end want to with account abstraction uh make blockchain basically the the accounting model uh and the verification uh but you don't we don't want Enterprise to log in with our metal so let's assume you take 10% of the decentralized data Marketplace which is 26 million in that case yeah uh what kind of fees are you charging on 26 million how how much is left for you as a protocol yeah so 35% if the data is stored with us because we have to run the whole data infrastructure and around 15% uh if you leave it on your own premise because then you have your cost there so that's currently the the model that we are uh starting to experiment with yeah and are you also going to produce your own data and yeah we have actually a product that is uh very very much uh a data Focus but on the on the crypto market and we are going to bring that uh that uh data uh into our platform it's called Data quazar um yeah it's from another spin-off for company new on yeah thanks there's one more Jud Shing y hello um I'm David from a ground style also out of DCd uh Angel Collective and I do Angel Investing um crypto for a long time I I think I think one of the like Justin highlighted uh one of the problems here is you know you talk about decentralization but it's not decentralized so so I think what so so I think from from just a marketing perspective it's probably not a good thing like it's sort of like when when I hear that it's and it's it's just like dishonest in a way um and I don't think you mean to do that it's just like for crypto natives it's like okay this is like hijacking the the the conversation of decentralization when it's not actually right what you really are is a Marketplace you know and that's that's fine like there's no nothing wrong with being a Marketplace for D data um so I think that would be part of my feedback and then uh I think the the other thing is like what what about like traction like what what what have you done like besides the idea of this besides having you know this bunch of uh logos right what what what does that mean when they' like shown interest right yeah yeah yeah well the the thing is we're launching the product in about month uh so no users using the platform at the moment other than that we had of course demos with prospects and they are quite interested in it uh and now interest mean though that they want to publish and uh they see a future in the in the product they want to uh even go to Enterprises um help us on the technological side uh some of our Partners will help on the technological side and others will help us with go to market yeah yeah I think it's um so you have the supply side of data right and and like the the hard thing is that the supply side of data they're going to give the data right cuz it's it's very low barrier they're not losing anything right they're just going to give it so the problem for you is like is the demand there like people are they willing to pay for it so do you have any like traction on the demand side not yet because we couldn't uh test it out because yeah if you don't have your Marketplace live it's uh very hard to uh to create a a pool towards yeah so uh we have uh conversations with data scientists and they use a lot of free data out there um but our engine also standardizes the data and they find that very interesting willing to pay for also some interesting data um it's sometimes also a matter of time because uh some data can be scrap for example uh and uh yeah do you want to start doing that as a company um or do you want to just acquire that data yeah that's already scraped by others so yeah that makes sense my my last um comment would be that like I appreciate entrepreneurship is like very hard so I appreciate what you're doing um I I think I think you should have started at a much like um stronger pain point and then have like the demand and supply side like set like just matching one supply of data with someone that needs that data and getting that person to like pay I think that would have been a stronger like pitch a stronger deck just saying at least look we got one or two people look they've made a transaction and you can do that like by hand you don't need software that so yeah that's yeah it'll be interesting to see how you go like you're going to have a bunch of data but you know the hardest part is getting both sides of the marketplace y but yeah that's all thanks uh d actually made me think of another question um who asked for this solution how did you decide that this was a solution that people needed and then it had to be blockchain yeah so uh basically the the founders of uh of Alliance block were actually having uh struggling with this um they uh got clients that wanted to combine all Financial uh types of of financial data uh and combine that with the blockchain well the data comes in different forms for formats Etc uh so they started building actually data standardization engine and there actually it came uh further than well once you have standardized this this data um there there's probably also demand for that data because you did already a lot of of of actions beforehand uh and there's value in in in data in general um so then the the idea for the data tunnel was uh was born actually yeah but why blockchain but by blockchain yeah because they are also in the blockchain space so they want to make it really their in their Vision they want to really do this in a in the most permissionless way as possible no no I'm the product lead yeah why not because I'm the product lead yeah um yeah again I think David you made a really good point this is not a permissionless or desensi system so I strongly think you should stop marketing that way I was going to ask since uh in preparation for this a lot of the links were uh not working and uh you did link a economic uh paper that talked about the uh I think the ALF token so how does this token tie into uh data tunnel and like why is this necessary or are you just adding extra friction uh through the use of a separate token uh no uh this is actually the token will be used for the for the validators on the network uh so there comes the the utility of the token and the token is also used within our other ecosystem it's a defi prot so the numbers were mentioned before so your Security will be tied into the total value of this token right which would be a tiny value considering the size of this marker and this is this ties back to what I was saying before if you attempt to put this on such a blockchain as you put it one you're still permissioned and two You' got some major security problems now so you're asking these companies to host data on a system that could potentially be uh exploited well we're here to agree to disagree but okay thank you thank you all right uh thank you everybody for there's a one question that I have here on Slide data tunel folks might want to look at quondo and numerai for your operations sorry I I'll give you the quondal maybe the person who asked the question can expand quondal and numerai okay no all right we write it you should look it up okay any Live question that everybody you feels inspired yes go ahead um and Loud hello hello you hear hey hello yeah uh so maybe I missed this but like what is the actual nature of the monetization of the data can you give a couple of examples of like how the data will be monetized how is data monetized the the fact that if you have a data set right say you're a scraping company and you normally would do uh an assignment for a company to scrape say Amazon data now you have a big data set and data scientists uh like to work with uh data sets so different types of data sets now if you are looking for this Amazon data well there you have it supply and demand brought together and normally a company might hire a scraper for that uh but you also have ready made data sets available currently already traded uh by other data marketplaces um all right does that answer your question I'm assuming it is because now I'm going to ask ask pay for the I um and you can always answer and afterwards I'm going to ask the judges to look at their little boards that they have I know this part and and grade this project uh and how they answered the question out of 10 and this will then give you your final grade that you can walk away with tonight uh as well as the video of tonight's presentation and that will be the same same for all the projects in what context is the grade in what in what context is the grade like um as an investment or as like just a company that we think would do well or what that's your overall grade of you for I I don't want like there's no like it's what is the out of 10 how would you rate this project overall holistically and I will then we will then merge your four grades and that was it well I have some criteria here I'm is more prepared I'm ready on a few things here so I'm ready is there a problem first of all and then out of 10 uh is is the solution to the problem out of 10 is there is the team that's behind Alliance block is able to solve it one out of 10 not one of 10 out of 10 for me as well total rful Market out of 10 token the token model out of 10 isn't blockchain needed out of 10 so if you if you're are going to uh give it a grade of all I will start but it's not the best grade probably I'm giving five out of that okay all right thank you Ty maybe you can put that wonderful little four questions you have with the telegram group for everyone to use it Forward I was a little more generous I thank you all right five thank you five three thank you all right thank you so much [Applause] you