The British mathematician, Clive Humby, was not wrong when he stated that “data is the new oil”. The ability to exploit data has led to the revolution of mindblowing ideas and driven innovation/civilization in every walk of life. This has led to creative transformation in industries such as finance, health, and education, just to mention a few.

To begin, we must explore some keywords used to gain a better grasp of this article's content:

The Web3 Era

Web3 is an emerging technology that paves the way for an open, more secure, and decentralized internet. Fundamentally, the Web3 is powered by the blockchain technology. Blockchain technology is a system that keeps a distributed ledger that records and verifies transactions securely.

This state-of-the-art technology has challenged the traditional ways of conducting business in all ramifications. However, when web3 or blockchain technology is mentioned, the first thing that comes to mind is cryptocurrency - a decentralized currency that facilitates local and international trade without the need for an intermediary. Nevertheless, cryptocurrency is just one wonder of the wonders of Web3.

Below are the core benefits of Web3 has over our conventional web;

Ownership: Web3 is powered by blockchain technology and decentralization, democratizing content creation and eliminating the middleman.
Privacy: A decentralized identity system allows you to control your online identity and personal information.
Security: The Web3-backed blockchain technology is secure and tamper-proof. Hence, data cannot be changed or hacked without the interference being detected.
Collaboration: Web3 projects are open source, and anyone can intellectually contribute to other projects.
Opportunity: Web3 runs on a DAO (Decentralized Autonomous Organization), a new management model without boards and executives. DAOs instead operate according to a set of rules written in code, allowing an unlimited number of people to participate in it.

Data

Data are raw and unorganized facts, figures, and information that have been translated into a form efficient for movement or processing. These pieces of data are collected from the source, stored, and processed to arrive at meaningful insights, aid decision-making procedures, and facilitate processes.

Tokenization

According to Nasdaq, tokenization is the process of converting an asset or the ownership rights of an asset to a unique unit called tokens. Tokens are commonly referred to when discussing blockchain technology, where they are used to indicate the ownership or digital representation of a valuable asset.

These assets can include physical assets like real estate or art, financial assets like equities or bonds, non-tangible assets like intellectual property, or even identity and data. Tokenization can create several types of tokens. Stablecoins, a type of cryptocurrency pegged to real-world money designed to be fungible, or replicable, are one example. Another type of token is an NFT—a nonfungible token, or a token that can’t be replicated—which is a digital proof of ownership people can buy and sell.

Data Market

The data market is a very broad concept that focuses on buying, selling, and sharing data. In the blockchain context, it is more of an emerging platform where data represented as digital tokens is traded on the blockchain.

Tokenized Data Markets

Tokenized data markets are blockchain-powered digital platforms where data-transformed tokens are traded (bought and sold). This blockchain arrangement has the following advantages;

Aiding Monetization: Data tokenization allows individuals to earn from their data via direct sales or by granting access to others.
Data Ownership and Democracy: individuals can own and control their data since blockchain technology has bridged away third parties.
Transparency and Security: Blockchain technology provides a secure and transparent audit trail/digital footprint for data transactions. This drastically reduces concerns about privacy manipulation and data misuse.
Fractional Ownership: Data can be divided into smaller tokens, enabling granular ownership and participation in data-driven ventures.

Amongst others, the following are examples of blockchain solutions that support the monetization of tokenized data;

1. BNB Chain: BNB Chain is a blockchain storage platform that aims to revolutionize the data economy by harnessing the power of decentralized technologies, including integrating with BNB Chain’s smart contract network, the BNB Smart Chain (BSC). BNB Chain allows users to store their data securely and privately on a distributed network of nodes, and also to monetize their data by selling it directly to buyers who need it.

2. Brave: Brave is a web browser that blocks ads and trackers by default, protecting user privacy and enhancing browsing speed. Brave also rewards users with its native cryptocurrency, Basic Attention Token (BAT), for viewing opt-in ads or engaging with content. Users can also tip their favorite creators with BAT, or use it to access premium content or services.

3. Audius: Audius is a music streaming platform that is powered by blockchain and owned by its community of artists and listeners. Audius allows artists to upload their music directly to the platform, without any intermediaries or fees. Artists can also set their terms for monetizing their music, such as streaming royalties or fan subscriptions. Listeners can discover new music, create playlists, and interact with artists directly.