Become a Data Provider

Data Providers

When we think of data providers for real-time financial tick data, then we usually think of high-frequency traders with co-location near the exchange to have nanosecond delays. This is not the aim of Morpher-Data-Chain.

Morpher-Data-Chain will provide access to delayed, as well as un-delayed data feeds with sub 1-second update intervals from first class third party data vendors.

The way this works is by allowing anyone to become a Data Provider (DP). A Data Provider can provide any kind of data, be it financial data or any other asset data, such as rent prices, market place prices, product prices, weather data (temperature, humidity, rain, …), etc.

It is possible to directly monetize this data by making it available to consumer Smart Contracts.

Data Providers will get commission for the usage of the data, but will be held accountable for the data quality.

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Data Provider Participation

In our model Data Providers get compensated by providing data directly on chain.

To participate, a data provider stakes an amount X into a staking contract. He can then start to provide ticks to a special WebSocket endpoint to any node in the network. The node will take of routing the tick data to the appropriate validator at that moment.

Data Provider Tick Data Usage

Upon processing a regular Ethereum Transaction, the Validator has access to all latest ticks from all Data Providers. If a Smart Contract requests a rate from the Oracle, the Validator can inject a Transaction into the transaction queue to answer with a callback directly and take the latest rate from the Ticks Queue.

All latest ticks for a particular market are aggregated up into a weighted average and provided as a callback to the Smart Contract.

The Smart Contract thus gets not only an updated price on request, it gets the last available tick data from all data providers. Further information about the data provider and the reliability of data can be injected in the callback. The data can also be insured and it also opens the ability to dispute a certain rate counterfactual post execution.

Data Provider Compensation

As the transactions are running on the same system as the data validators are staking, its easy to compensate data providers according to some defined model.

If a Smart Contract is requesting a specific rate from a Data Provider, the request can already include the commission - as its usually done directly with the oracle provider. This can be forwarded to the data provider as commission and added to the stake.

Data Privacy and Usage Rights

A bit concern is licensing rights and data usage. On Morpher-Data-Chain data is entirely private and full encrypted with specific licensing and usage rights. For example, it should be possible to provide a public low-cost or free 15 minute delayed data feed and a paid real-time data feed to specific smart contracts.

It should also be possible to give licensing rights only to some Smart Contracts, which can be modeled through the oracle smart contract as well.

This will be discussed in more details below in the Nodes and Communication section.

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