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Data contracts are internal agreements between data producers and consumers, outlining schema definitions, data semantics, SLAs, and terms of use. These contracts promote a structured format consistent across teams and often involve a cultural shift in organizations, with the CDO and CTO working together to enhance accountability. The need for data contracts stems from data producers lacking understanding of downstream data use cases due to lack of visibility. As data teams aim to improve visibility and support advanced uses like machine learning, they are striving for higher data quality standards.
