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June 17, 2025

From Clearing House to Observer: Redefining trust in data transactions

For years, the Clearing House held a central position in the IDS architecture, designed as a mechanism to ensure accountability in data exchanges and to verify that agreed actions were indeed carried out. But concepts evolve, and at times, terminology outlives its relevance.
Sebastian Steinbuss

A new position paper from the IDSA Working Groups on Architecture and Rulebook, ‘Observability in Data Spaces’, marks a clear and deliberate shift: the Clearing House, as previously defined, is no longer part of the IDS framework. In its place emerges a more refined and flexible concept: the Observer.

This is not merely a change in vocabulary. The paper responds to a growing operational need in real-world data spaces: the ability to observe data-sharing transactions – not retroactively, but as they occur. It is about verifying key contractual steps: Was a contract concluded? Was data actually exchanged? Was the transaction executed as intended?

In this context, observability does not imply omnipresent monitoring. Rather, it is focused and purposeful – targeted specifically at the contractual layer of data sharing, where legal compliance, billing structures, and governance responsibilities intersect.

Observability does not require a third party

Importantly, the paper emphasizes that observability is not a purely technical feature. It cannot be “plugged in” as a standalone component. Instead, it is a capability that arises from deliberate alignment among participants, governance frameworks, and the specific business contexts they serve. Governance models, participant responsibilities, and organizational processes must be established first. Only then can technical implementations be appropriately designed.

One of the paper’s most notable contributions is its clarification that observability does not always require a neutral third party. The Observer role can be fulfilled by either of the transaction participants or by an independent entity, depending on the data space’s governance model. This flexibility makes the concept highly adaptable across different architectures and operational setups.

Resolving confusion

Finally, the paper also resolves a persistent source of confusion: the overlap between the IDS “Clearing House” and Gaia-X’s “Digital Clearing House.” These are fundamentally different constructs, and the IDSA side has now moved on with a clearer, more pragmatic model.

The full paper outlines types of observability, concrete implementation examples, and the rationale behind this architectural evolution. It is a valuable reference for anyone engaged in building or running operational data spaces.

Read the full paper: IDSA Position Paper Observability in Data Spaces

Author: Sebastian Steinbuss
Sebastian Steinbuß is a CTO und Lead Architect at International Data Spaces Association, where he leads the technical developments of the Association and coordinates the IDSA Working Groups and Task Forces.

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