Data Tokenization

Data Tokenization Flow

1. Validation of Data

   • Objective: Ensure that only high-quality, validated data is eligible for tokenization.

   • Process:

     • After data is submitted and validated using smart contracts, it is marked as "validated" or "rejected."

     • Only validated data will proceed to the tokenization step.

2. Creating Tokens

   • Service Used: Hedera Token Service (HTS)

   • Inputs Required:

     • Data File Hash: Unique identifier for the validated data file.

     • Token Name: A descriptive name representing the data asset (e.g., "Validated Data Set 1").

     • Token Symbol: A short identifier for the token (e.g., "VD1").

     • Token Supply: The number of tokens to be created, typically set to one for unique data assets.

     • Decimals: Number of decimal places the token can have (usually set to zero for unique assets).

     • Metadata: Information about the data, such as origin, type, and validation date.

   • On-chain Recording:

     • Create the token using the Hedera Token Service, linking it to the validated data file.

     • Store the token ID and relevant metadata on the Hedera ledger, ensuring traceability.

3. Distributing Tokens

   • Objective: Allow data owners or providers to distribute tokens representing their data.

   • Process:

     • The token can be transferred to buyers, researchers, or organizations needing access to the data.

     • Each transfer is recorded on the Hedera ledger, maintaining a clear ownership history.

4. Access Control and Licensing

   • Inputs Required:

     • Token ID

     • Licensing terms (e.g., usage rights, duration)

   • On-chain Recording:

     • The Climate Intelligence smart app can enforce licensing terms and record them on-chain, ensuring compliance and clarity regarding how the data can be used.