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Earn 7.0% APY staking with Solana Compass
Help decentralize and secure the Solana network delegating your stake to us and earn an impressive 7.0% APY yield on your SOL, while supporting us to create new guides and tools.
Breakpoint 2023: Using Compression + NFTs to Build a Data-Rich Blockchain
An exploration into using NFTs and compression methodologies to enhance blockchain data richness.
During Breakpoint 2023, Tony Plasencia and Kevin Arifin, co-founders of Underdog Protocol, discuss the potential of using compression and NFTs (non-fungible tokens) to build a more data-rich blockchain environment. Plasencia’s background spans several large consumer marketplaces, including Uber and thumbtack, where he observed the issues related to data silos and interoperability in technology. Arifin later demonstrates the practical application of these concepts. This topic is particularly newsworthy because it addresses the pervasive problem of data immobility and the inefficiencies that plague current blockchain data storage, presenting a viable and innovative solution that could potentially reshape the blockchain landscape.
The Problem with Data Silos and Interoperability
Tony Plasencia outlines the challenges users face with data silos, which are isolated pools of data that cannot be easily shared or accessed outside of their systems, and the lack of interoperability, which refers to the ability of different systems to work together seamlessly. Users crave a fluid experience, expressing a need to move data efficiently across various platforms.
The Role of NFTs and Compression in Blockchain
Post-identifying the problems, Plasencia dives into the use of compression techniques and NFTs to address these issues. Compression drastically reduces the costs associated with storing data on the blockchain, thereby allowing for a more efficient and scalable solution. The innovation lies in leveraging these methods to store not just NFTs, but any form of data, leading to a more enriched blockchain.
Market Research Findings and User Sentiment
A study conducted by BCG highlights that most users are interested in personalized experiences and convenience but lack an incentive to share their data. Blockchain and compression could pave the way for a new paradigm where users are rewarded for their participation and data sharing, which could be a breakthrough in data management and user engagement.
Underdog Protocol's Minting API and Applications
The Underdog Protocol’s minting API was showcased in a real-time coding demonstration by Kevin Arifin, illustrating how developers can mint, manage, and index NFTs efficiently. The protocol aims to make blockchain development more accessible to various entities, from technology giants to individual developers.
Facts + Figures
- Tony Plasencia is a cofounder of Underdog Protocol with a background in consumer marketplaces like Uber.
- Underdog Protocol focuses on using NFTs and compression to increase blockchain's data capacity.
- A BCG study in 2020 surveyed 10,000 individuals about data personalization, convenience, and incentives.
- 65% of users want personalized ads; 33% seek convenience, and 55% see no incentive in data sharing.
- Customer data platforms used by enterprises can cost between $5,000 and $50,000 per month.
- Underdog’s solution could lead to a 100x cost reduction by using compressed NFTs.
- The company has partnerships with Solana Mobile, Metaplex, and other notable blockchain entities.
- The live code demonstration involved creating a Breakpoint project and minting NFTs directly.
- The Solana blockchain is described as a “global state machine” and a decentralized database.
- Data solos and lack of interoperability were identified as significant barriers in the current tech landscape.
- "The valuable data is things like user demographics, user preferences, user actions. All of the things that big web2 companies are currently collecting."
- "If we want Solana to win, we need to bring activity on chain and be both interoperable and decentralized."
- "What we're able to do is cut that almost 100x by bringing that data on chain to compressed NFTs."
- "We're enabling anyone to claim compressed NFTs with their Google. Finally, that means we're able to tie web three actions to a web two identifier, creating one of the richest data sets we've ever seen."
- "If I can code on stage, make an NFT collection, make an NFT with the dashboard and the terminal, then you should be able to do this at home."
What is a data silo?
A data silo is an isolated pool of data that cannot be easily shared or accessed outside of its system. This isolation can create inefficiencies because it restricts the free flow of information, hindering the ability to leverage data across different platforms or services.
Why is interoperability important in technology?
Interoperability is crucial because it allows for different systems and software to communicate, exchange data, and work together harmoniously. In the realm of technology, it enhances user experience by providing a seamless transition of data and functionality across various platforms.
How can NFTs and compression contribute to blockchain?
NFTs and compression techniques can significantly enhance blockchain technology by allowing more data to be stored on-chain in a cost-effective manner. By reducing the expenses associated with data storage and enabling richer data sets, blockchain can become more scalable and practical for extensive data management.
What kind of data can be stored using the Underdog Protocol’s minting API?
Underdog Protocol’s minting API enables the storage of various types of data as NFTs, which can include user demographics, preferences, actions, and more. This affords the ability to tokenize a wide array of data points that go beyond traditional collectibles.
What is the practical use case of Underdog Protocol demonstrated at Breakpoint 2023?
At Breakpoint 2023, Kevin Arifin performed a live coding demonstration, highlighting the practical use case of the Underdog Protocol’s minting API. By minting an NFT live on stage, he illustrated the ease with which developers can create and manage NFTs, effectively showcasing how the protocol can serve as a bridge between web2 identifiers and web3 actions.
- Key Points:
- Facts + Figures
- Top quotes
- Questions Answered