Data Marketplace
- 3 December 2021
What is data marketplace?
In the near future, everyone will have access to a truly global market with frictionless transactions and data privacy. Data Wallet will be that connective tissue.
The decentralized Data Marketplace enables entities as individuals as well as companies to sell their data directly. In other words, it provides a platform for people to control and protect their own information. The wallet allows them to do so without relying on any mediator, because its agents are smart contracts in the network riding on blockchain technology. "Data is a new currency”, says Michael Ben-Or, VP of product management, "and one way or another we're going to pay for things with it". That might be an exaggeration but there is certainly great in the ability to use your data.
What is Snowflake data marketplace??
Snowflake is the first data marketplace to provide a data sharing and monetization platform for businesses of all sizes. The company has developed a unique data sharing and monetization platform that enables businesses of all sizes to share anonymized data sets with each other to create new insights, products, services and business models.
The company currently has over 1,000 customers, including BMW, Procter & Gamble, Ford Motor Company and Kimberly-Clark.
How does it work?
The Snowflake platform consists of three components: the Data Sharing Hub, the Monetization Engine, and the Data Marketplace. The Data Sharing Hub is the central repository where businesses can share anonymized data sets with each other. The Monetization Engine enables businesses to monetize their data by selling it to other businesses or by using it to create new products and services. The Data Marketplace is the online store where businesses can buy and sell anonymized data sets.
Why is this important?
Businesses of all sizes can use the Snowflake platform to share anonymized data sets with each other to create new insights, products, services and business models. This enables businesses to:
- -Generate new insights and understand their customers better
- -Develop new products and services
- -Create new business models
- -Reduce costs and increase efficiency
In a world where data is becoming increasingly more valuable, the Snowflake platform provides a way for businesses of all sizes to share and monetize their anonymized data sets with each other. The Snowflake platform is built on the foundation of blockchain technology using Hyperledger Sawtooth, which was incubated by the Linux Foundation.
--- Read More! WHAT IS DATA MANAGEMENT PLATFORM (DMP)? ---
What is Live Ramp marketplace?
Live Ramp provides a comprehensive set of identity-based services that enable the world's leading companies to enrich their first party data, increase revenue, reduce risk, and improve customer experience.
Enrichment is the service that enables businesses to append object level attributes from Live Ramp’s Identity Link product suite onto any first party dataset so they can be synced with third-party DMPs or used for other downstream applications.
Aggregation combines multiple user profiles into broader audience segments and groups them by common traits (age, income level, etc.) and matches those segments against the profiling attributes provided by various partners/publishers within Live Ramp’s Identity Link product suite.
Why do data marketplaces fail?
A data marketplace is a platform where people can trade their data or sell it to others. According to Gartner, worldwide revenues for data marketplaces are predicted to reach $13 billion by 2022. However, the marketplaces fail because they rely on intermediaries that are centralized and that require trust between peers in the network.
What are the problems with today's approach?
The problems with today’s approach include:
- -Bifurcation of user identity across different platforms/parties
- -Data silos result in wasted user time and lost revenue for companies
- -Vendor lock in limits choice of high quality, vetted solutions for businesses
- -Customer acquisition costs rise dramatically due to reliance on third parties
What is different about Snowflake?
Snowflake uses blockchain technology that enables an unbiased marketplace without the need for central authority. Snowflake does not rely on third parties to connect buyers and sellers, which eliminates costly data-sharing fees, vendor lock-in and the hassle of having to maintain multiple connections across dozens of platforms. In addition, because it’s built on Hyperledger Sawtooth, Snowflake has a patent-pending consensus mechanism that restlessly engages participants in a fair transaction. The platform also provides instant access to anonymized data sets through a user interface instead of forcing customers to have coding knowledge or familiarity with APIs.
