Datum, a post-ICO decentralized storage network and data marketplace, is putting personal info back into the hands of its rightful owners.
In a previous article about Datum, we discussed what the project is doing and how they’re doing it. You may want to check it out before returning to this page… go ahead… I’ll wait for you right here.
You’re back. Great!
Now, as you just read, there was some talk of tokenization but we didn’t get into the specifics of how those tokens flow throughout the network.
In case the title didn’t tip you off, DAT tokens are the topic of this article. And, if you missed it last time, here’s a little info for you to process…
Disclaimer: This is not investment or financial advice. I’m not a financial expert by any stretch of the imagination. Most information within this article is speculative and merely my own personal opinion. Always conduct your own research before contributing to any startup projects.
Always remember that what you do with your funds is your decision to make. And if that decision proves too difficult for you alone, seek guidance from a financial professional.
I may or may not receive a small allocation of tokens for creating this content. That said, I will do my best to remain unbiased and fair. I try to avoid all FOMO and FUD and never wish to impart those emotions on my fellow crypto-heads.
A Gargantuan Stockpile
Let’s go over a few DAT token basics. And we’ll start with the DAT token’s towering total. Yes, it’s huge. But it’s also deflationary.
Although the Datum project’s whitepaper lists a total supply of 3 billion tokens, CoinMarketCap begs to differ.
CMC puts the total at 2.65B, which is close. But a discrepancy of 35M — over 10% under the whitepaper’s figure — is more tokens than the entire stash of some other cryptocurrencies.
Regardless of which source is most accurate — the whitepaper is 10 months old and CMC has a reputation for token supply shenanigans — there will be plenty of DAT tokens flowing through the network.
However, even though the DAT token’s overall supply is in the billions, it’s still a fixed supply. After all, we’re talking about crypto and not print-on-a-whim fiat. I much prefer the concept of the former.
What CoinMarketCap doesn’t tell you is that the overall DAT token supply will decrease over time. Tokens exchanged for network privileges will be eliminated.
Now, when calculating a token’s value, a huge supply is one part of the equation that can drag the price down.
But if you’re in the camp that believes coins and tokens with solid fundamentals will one day return to — and hopefully, exceed — their all-time highs, take a look at the current under-a-penny price.
Now compare that to the DAT token’s ATH of 13+ cents in January of this year. Remember, I’m not trying to give you any financial advice here. I’m not saying you should go fill a bag with DAT tokens today.
I’m merely sharing a little tidbit of info that I found interesting… let’s leave it at that.
Until the crypto market gains additional fiat gateways, it can be a little tricky to pick up certain coins, especially if they’re restricted to decentralized exchanges.
The process can go like this:
- Discover token
- Research token
- Decide to fill bag with tokens
- Hope token is available on an exchange you already have an account with
Although you don’t see all of them listed on CMC, here’s the list of exchanges now trading DAT tokens:
I find KuCoin’s user interface to be fairly straightforward. If you’ve traded on Binance you’ll be at home there. But if you’re after high DAT volume, OKEx is the winner.
Earning DAT Tokens
Monetizing your anonymized data is at the heart of the Datum project and the main reason for exchange within the platform.
When you give an advertiser permission to use your encrypted info, you’re awarded DAT tokens. And, you can also choose to deanonymize certain data to earn greater rewards.
Plus, if you’ve taken the time to enrich your data, it carries a higher value on the Datum network. Methods of enrichment include linking your data to social media profiles and Datum’s external partners.
Another way to make your data more valuable is by syncing it to a blockchain-based identity verification service. Current choices are uPort and Civic.
I’d used Civic in the past — the connection process is quick and you can finish everything using only a smartphone.
Decentralized networks are secured by individual computers — regular nodes. By definition, these nodes are spread out all over the globe.
Nodes are responsible for securing a network. Each node can verify transactions and contains a real-time copy of the entire blockchain it’s helping to run.
There are no breaks for nodes as they’re expected to have zero downtime while running 24/7.
Run one of these for Datum and you’ll get rewarded with DAT tokens.
Now, some contributors to networks are content with operating a storage node. But others expect a little more from their computational power.
If a standard node wants to achieve Grandmaster status, it’ll have to work a little harder…
Masternodes are special pieces of equipment that are near and dear to the success of any blockchain project. And in some situations, operating one can be a very lucrative endeavor.
Here are a few of the special functions performed by masternodes:
- Creating a Treasury System
- Enabling Instant Transactions
- Enhancing Transactional Privacy
- Participation in Governance & Voting
Masternodes don’t come cheap though. Node-runners are essentially hosting a wallet that’s supposed to be accessible at all times.
And for that, you’ll need dedicated storage space, your own server or VPS, and a static IP address.
On top of it all, you’ll need a minimum number of tokens to ensure the viability of your wallet. Minimum balances vary from project to project.
As for Datum, I couldn’t find the lowest amount of DAT tokens needed to run a node anywhere in their documentation.
So, today I reached out to the team on Telegram. They let me know that the details of running a DAT masternode — including minimum deposit — are still being ironed out.
Spending DAT Tokens
The Datum project isn’t made for personal data only. Developers and businesses can pay to have their data secured by Datum’s network.
Storing data is paid for in, you guessed it, DAT.
But data storage is only one side of the token…
The Ad Connection
Facebook’s Cambridge Analytica debacle was fed by a burning desire for personal data.
Self-curated data — your everyday Internet activities — is invaluable for advertisers. I’m sure you’re familiar with those endlessly annoying sidebar ads that follow you anywhere and everywhere you surf online.
By using Google and FB and all the rest, you build a personal profile that advertisers capitalize on by feeding you highly targeted ads.
But, Datum’s major upgrade to this system lies in a simple concept: Permission.
You want my anonymized data, Mr. Adman? Sure, take it. But it’s gonna cost you some DAT. Thanks for asking first though!
That’s how it’s supposed to work within civilized societies. We don’t just take things that aren’t ours, we ask and we share.
Initially, the DAT token’s massive supply was a turn-off. I don’t like to see coins run up into the billions. I made the mistake of brushing the project off.
But digging a little deeper revealed a planned system of deflation.
Coins with a deflating supply are welcome within the crypto market. Trimming the supply provides the means to adjust value without relying upon a change in demand.
In addition to their deflationary nature, DAT tokens have real-world use cases. And, the project is tackling an issue that’s long overdue for a blockchain disruption.
We’re in a data-ruled era. Your personal data is becoming your most valuable asset. And it rightfully belongs to you.
The Datum project’s mission to put control of data back into the hands of the people is certainly relevant today, and will only increase in relevance as the global adoption rate of technology continues to grow.
In this series’ final article, we’ll go over the project’s Android app.
But until then…
If you haven’t yet, I encourage you to take a look at the Datum Whitepaper. The document is an easy read with colorful illustrations.
And, here are even more resources for you:
By the way…
If you like what you see here and need help getting your crypto message to the masses, I’d love to hear about your project.
Feel free to reach out to me here: blockchainauthor at Gmail