Here we will take a look at the DTX Token which will be used on the Databroker DAO platform, how it will work, what its utility is and why it might increase in price.
Firstly, just to summarise briefly what Databroker DAO is all about: basically it will be a decentralised marketplace for buying and selling Internet of Things (IoT) sensor data using blockchain technology.
The Internet of Things is the many billions of devices around us that soon will be recording masses of data and communicating with each other.
With Databroker DAO, owners of IoT devices will be able to sell their data to companies and organisations, which could be very valuable to them in the insights it provides about everything from electricity usage to health and fitness and consumer behaviour.
The Databroker DAO Token will essentially be the token on the platform that will allow participants to buy and sell IoT data.
All the data will be stored in a special DataStreamRegistry, which will also stream sensor data. Streaming data can be live data coming from an IoT sensor. Data can be bought on a timeframe basis or per download.
The owners of IoT sensors will also have to stake some tokens on the platform. This is as an incentive to conform with the system and offer good quality data.
Sellers of data will also be able to stake more tokens if they wish to be featured more prominently in the listings, much like for example in the paid adverts in Google.
There will also be mechanisms for purchasers of data to challenge the data if they believe it is not of good quality. If they want to do this, they will stake a certain number of tokens. Then if enough complaints are registered against a particular seller, an independent adjudicator from Databroker DAO will review the data. If they rule against the data provider, then the stakes of that provider will be split between the challengers and vice versa.
This mechanism will encourage data sellers to provide good quality data, whilst at the same time incentivising buyers to report bad data, but not to challenge unnecessarily.
The price of the token will initially be 1 ETH to 4,000 DTX tokens. Their aim at the outset is to have 1 DTX token cover the average value of the data from a sensor for one week, which seems very reasonable.
There is scope for the value of the token to increase over time however, quite simply if there is more demand for it. This is one of the more straightforward token economies to understand — the more users of the platform there are (both buyers and sellers) and the more data they want to buy and sell, the more demand for tokens there will be.
There aren’t too many other outside factors to consider, other than perhaps the overall cryptocurrency market, which often moves in unison one way or the other.
According to the calculations of Databroker DAO, the potential demand for the tokens could be considerable.
They estimate that the market for IoT sensors will reach a staggering $1.3 trillion by 2020, equating to 34 billion devices worldwide. By 2024, they hope to have $2.5 billion flowing through their platform, with 225 million sensors on it. Whether or not they can achieve this however remains to be seen of course.
The IoT revolution that is coming over the next few years will change the way so many industries operate and collect data.
Creating a marketplace for this data is a great idea — so much of the data could otherwise sit idle and not be used, or could miss out on being enriched and providing valuable insights about our cities and society.
The Databroker DAO Token (DTX) will provide a simple mechanism for the buying and selling of this data on their platform, with incentives for offering good quality data.
Its value could increase in time if there is strong usage of the platform and therefore demand for the tokens.
So what do you think — will this project be a success? Will you be buying some tokens? Let us know in the comments below!