From Monopoly to Democracy: The Rise of Decentralized Data Empowerment

Sitting down to digest the videos in Andrew Ng’s Generative AI course it is hard to ignore the prevalent use of the term data and how important large data sets are when building these large language models such as Chat GPT and Bard. Andrew Ng is Founder of Deeplearning.ai, he was a co-founder and head of Google Brain and Chief Scientist at Baidu. It is fair to say he knows a thing or two about the power of data.

So, where do we get this data? Who controls the flow of this data? And how do companies find the inputs that will provide the greatest outputs when dealing with real-world use cases?

These are questions that many practitioners in the world of blockchain today are asking and answering by providing access to streams of reliable, transparent data from verified sources.

A seminal shift is underway when it comes to data-driven decision-making as AI and Blockchain technology emerge to put the power in the hands of the public. Breaking the barriers to entry and the age-old data monopoly held by larger corporations, blockchain technology, and decentralized data are democratizing information and transforming who and how companies of all sizes can use this information.

The Historical Data Monopoly

The phrase "knowledge is power" echoes through all discussions regarding access to data. As with the printing press empowering capitalist press owners, control over information governs us and shapes our destiny. However, the lessons from history underscore the need to ensure that power remains decentralized, preventing the concentration of control among a select few.

For years, the manipulation and analysis of vast datasets were privileges held by the corporate giants with deep pockets. Smaller businesses, startups, and entrepreneurs found themselves on the sidelines, unable to compete and essentially working with data that had already been manipulated. This data monopoly created barriers to entry, stifling innovation and limiting opportunities for those without substantial resources.

The rise of blockchain technology disrupts this narrative, offering decentralized access to data that redefines the point at which start-ups can get their hands on valuable data sets. No longer confined to the elite, data is becoming a democratized resource accessible to businesses of all sizes.

This decentralization is not just about breaking down data silos; it's about dismantling the barriers that have kept smaller players from harnessing the full potential of information.

Using decentralized data means that everyone has access but also that no single party is in control of the process. Nick Campion, Head of Marketing for Flare Network tells us that by avoiding single points of failure this type of data can help to prevent censorship, fraud, and downtime, which increases the security and integrity of the information being supplied.

Campion outlines Flare’s ambitious goals, “Flare’s optimization is through the network’s architecture and incentivization structure, with the validators securing Flare’s proof-of-stake consensus mechanism also responsible for supporting the provision of decentralized data as data providers for the network’s native oracles.

The goal is to grow the industry’s total addressable market, increasing what’s possible with blockchain by giving developers decentralized access to the broadest range of data and data proofs, provided at scale, low latency, and minimal cost.”

Empowering Start-ups and SMEs

One of the most significant impacts of decentralized data access is seen in how it empowers small and medium-sized enterprises (SMEs). Traditionally overshadowed by larger corporations, SMEs can now leverage blockchain and decentralized data to make informed decisions.

Whether it's understanding market trends, consumer behavior, or optimizing operations, smaller businesses now have a seat at the data-driven table using Blockchain and Artificial Intelligence.

Mat Yarger, Founder of Demia, a blockchain project securing data for carbon markets, notes that “Subject matter experts can leverage decentralized data for informed decisions by accessing high-integrity, real-time data. This empowers them to make data-driven choices, enhance research, and develop insights without compromising security or data quality.”

Transparency, a cornerstone of responsible business practices, is no longer a luxury reserved for the big players. Blockchain's inherent transparency features allow businesses to showcase their ethical practices without the need for extensive resources. This transparency becomes a powerful tool for consumer trust, irrespective of the size of the business.

Entrepreneurs and startups can now focus on creating value and innovative solutions rather than being bogged down by data access constraints. The democratization of information sparks a new era of creativity and problem-solving, where ideas, not resources, become the currency of progress.

Addressing the Challenges

While the shift towards decentralized data access brings about profound positive changes, it also poses challenges. Privacy concerns, security issues, and the need for robust regulatory frameworks are crucial considerations. The democratization of data also comes with a responsibility to actively participate in shaping how this data is used.

Many of today’s oracle systems suffer from meaningful drawbacks: they are often hard to decentralize, expensive, slow, and difficult to scale.

This is particularly relevant for emerging use cases such as machine learning and real-world assets, which have intensive data demands. Builders will realize that current systems are not able to handle this much data in a secure and decentralized fashion.

These challenges present opportunities for collaborative efforts to establish responsible guidelines that ensure the ethical use of decentralized data.

“Emerging applications require a highly scalable, low cost, decentralized, and low latency solution for data. New projects will be drawn to platforms with well-considered, native, decentralized data acquisition architecture - like Flare,” notes Campion.

“Data silos, security concerns, inconsistent data quality, and complex access procedures. These hurdles hinder seamless data flow, slowing down innovation and decision-making processes. Decentralized data solutions, like Demia, aim to address these challenges, enabling frictionless data access and trust,” says Yarger.

A Fairer Society

Decentralized access to data is a catalyst for societal change. Dismantling the data monopolies means that more individuals and organizations can contribute to an equitable and responsible future. How practitioners empower small businesses to leverage this data is critical as the role of data in shaping AI models like Chat GPT and Bard becomes increasingly evident.

Just last week, Google received an extreme level of negative backlash from the results of its released Gemini AI. Apologizing for the incorrect representation of the US Founding Fathers is one thing, but fixing a politically sensitive model that has been trained on enormous amounts of inaccurate data is a different beast to tackle.

Furthermore, the crucial questions of data origin, control, and utilization resonate across diverse industries.

The quest for access to transparent data sources becomes paramount as official bodies continue to explore the potential of these emerging technologies and foster more data-driven decision-making.