Why Investors Should Be Paying Attention to DATA
Blockchain technology is constantly described as being “trustless”, and this might be one of the most useful benefits it has. Even though there are artificial intelligence elements to smart contracts, similar efficiencies exist where the need for a “trustworthy” middleman disappear.
Digital Advertising Needs a Change
As recent news about Facebook and other technology giants has made clear, nobody can truly be trusted in the world of digital advertising. This is where companies like Basic Attention Token originated from, and is exactly the problem DATA is trying to combat.
DATA stands for Decentralized AI-Powered Trust Alliance, and is a digital data authentication protocol that depends on blockchain technology to manage information. Much of the infrastructure is based on AI and P2P frameworks
At its core, DATA is about getting to the root causes of fraud and redesigning the system so it can work much more honorably. Right now, the centralized advertising companies are able to collect massive “rents”, grow in size, and are easily “gamed” by players who learn how to manipulate the system. Additionally, you have the wild statistic that 40% of online ads traffic is bot traffic, which makes you wonder how much actual value companies like Facebook are truly able to add.
And just like Basic Attention Token, DATA wants to make sure that users get compensated for their “attention”. A world where ad-blockers aren’t necessary is a world with a much better functioning Internet.
Understanding the Model
DATA’s cryptocurrency, DTA, is the currency by which advertisements are conducted. Advertisers pay fees to the platform and those fees are distributed between the protocol and the users. In comparison to BAT, DATA has several advantages that include more decentralized reward management, ability to be used across the whole Internet, and having a standalone blockchain.
In recent news, DATA finally launched their Mainnet on December 31st, 2018. Surprisingly, this has had little effect on the price of DTA. The switch is still underway, so perhaps there will be more of a market reaction once it is completed.
DATA is currently ranked as 281 in terms of market capitalization. Looking at the chart of performance in the past month, the price has hovered between 23 and 30 satoshis, which definitely makes it a “different” sort of purchase.
A Risky Buy
Low satoshi coins are generally considered riskier in the same way that penny stocks are considered risky. You always have the people claiming “it only needs to go up 10 satoshis and that’s a 40% return”, but that ignores the true fundamentals of the company.
DTA spent the first half of the last month bouncing between 26 and 27 satoshis. Around Christmas, it sharply dropped, recovered, broke out, and then re-entered the original zone. Since then, it has declined to approximately 24 satoshis.
Many would avoid this sort of a downtrend, but it also makes for the perfect buying opportunity. Assuming the survival of the coin, there is very little room left for it to give, and it is about due for a recovery to its past levels around 50 or 55 satoshis.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.