What is ZK Oracle (ZKT) | What is ZK Oracle token | What is ZKT token

What is ZK Oracle (ZKT) | What is ZK Oracle token | What is ZKT token

ZK Oracle is a Polkadot-based privacy-preserving oracle network, aiming to expand the application areas of Web3 applications in real business environments. What is ZK Oracle (ZKT) | What is ZK Oracle token | What is ZKT token

ZK Oracle is a Polkadot-based privacy-preserving oracle network, aiming to expand the application areas of Web3 applications in real business environments. The core features of ZK Oracle include: General oracle network based on privacy protection; A data matching mechanism based on community autonomy and self-sustainment; Strengthen support for non-fungible tokens (NFT) and DeFi data privacy.

ZK Oracle: the Community-driven & Privacy-preserving Cross-chain Oracle for Web3

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The Oracle Problems in the Web3 Era

The Web3 era is just around the corner. Decentralized applications such as DeFi have huge potential and practical value due to their automated execution characteristics.** In the Web3 era, the decentralized network can produce a paradigm shift, allowing users to regain the ownership of their own data and truly acquire the dominance of the Internet.**

However, decentralized applications which run in a trustless manner still rely on external data sources, which means that the data security and privacy is lost at the data level from the beginning, making on-chain applications more vulnerable to data-related attacks. Due to the special consensus model, blockchains cannot directly import real-world data and information by actively initiating a network call action. The consensus mechanism of the blockchain determines that each node must reach the same state after the on-chain transaction and block data is processed._ Smart contracts currently do not have a simple, secure and private way to access reliable real-world data, which makes their application scenarios quite limited._

ZK Oracle: the One-size-fits-all Solution for Oracle Problems

ZK Oracle’s main function is to bridge the gap between decentralized applications and real-world data, and to use economic incentives models to ensure that data is accurate and reliable.

ZK Oracle will be initially designed and developed based on SERO chain to support Turing Complete Smart Contract platform on SERO and after the complete functions of the Polkadot mainnet goes live, while maintaining the original anonymous security solution, it will be migrated to the cross-chain Substrate underlying architecture to continuously improve the functions of ZK Oracle. The overall design of ZK Oracle will focus on three aspects: Data Interaction Process, System Architecture and Interface Integration.

System Architecture of ZK Oracle

It can be seen that the entire interaction process is divided into on-chain contracts and off-chain nodes to complete cooperation, so ZK Oracle is divided into two parts, on-chain and off-chain, which contains the following core components:

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A. On-Chain Part

The core components of the on-chain part are mainly the deployment of ZK Oracle related smart contracts on the SERO chain. The main functions include processing requests and responses, calculate result verification, node registration and token mortgage, statistical monitoring, payment processing and other functions. The smart contract on chain also provides a unified interface for the upper level smart contract of ZK Oracle. The key components of ZK Oracle’s on-chain part include the On-chain Proxy Contract, Monitoring System, Registration System, Payment System, etc..

B. Off-Chain Part

The off-chain part of ZK Oracle is run by independent third-party operators which implement a L2 distributed peer-to-peer network composed of clients of the core protocol. ZK Oracle’s off-chain nodes use a Byzantine protocol to reach agreement on the same API calls. In each round of the agreement, a random leader election is achieved through a resource (VRF random seed) that no one can easily monopolize. As long as most participants are honest and credible, the ZK Oracle system will achieve final and unalterable consensus.

Important components in the protocol client include: event monitoring and chain adapters, node consensus components under the chain, request/computing task processing modules, etc.

The Future of ZK Oracle

Unlike most existing oracle projects that focus on DeFi, ZK Oracle focuses on the universality of applications, so the coverage of ecosystem applications is much larger than the current mainstream oracle projects. The application scenarios of ZK include but are not limited to: prediction markets, derivative trading platforms, stablecoins, lending platforms, insurance applications, gaming applications, etc.

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Why do we need Privacy-preserving ZK Oracle ?

Opening: Privacy — The Death of Internet Freedom

History of the Internet can go back to the 1960s when the American Federal Government initiated research on fault-tolerance and computation networks. Then in the 1980s, the Internet was put into massive application and adoption in academic research as well as military technologies, and then gradually evolved into a globalized network technology with business expansion. With the development of globalization, the Internet was then put into massive commercial applications, re-configuring people’s lives and the society in all aspects of work and life. According to Mobile-Internet Industrial Statistics and Research in Q2 of 2020 done by Aurora Mobile (NASDAQ:JG), in the time of post-Covid, the Internet is invading people’s lives by occupying their time. Average number of Apps installed by mobile Internet users is 59. Daily duration of mobile Internet usage reaches an all-time high of 6 hours. Since September of 2020, the average online time of TikTok totaled 90 thousand years, aka 44.16 Billion minutes.

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For each individual nowadays, the Internet is not something invisible. More and more people indulge themselves in mobile Internet apps such as Twitter, TikTok, Taobao, Amazon etc. With huge traffic and data advantages, the Internet giants behind these apps grow in a barbaric way. In China, the online time and demand market of Chinese mobile Internet users are basically controlled by the 4 giants, namely Tencent, ByteDance, Alibaba and Baidu. In the West world, there are Google, Amazon, Facebook who control most of the Internet traffic and data. By now, the Internet industry is still in the fast track of development with all kinds of new mobile apps coming out, satisfying people’s basic needs. However, under the surface of abundance and prosperity, the Internet giants are everywhere, controlling everything including people’s freedom in the virtual world. Each one of us relies on the giant ecological system construed by Internet giants. Meanwhile, with ever-flowing data as the feeds to power the giants’ further development and expansion. Privacy became the victim during the crazy commercial expansion as it’s been neglected and violated.

W

ithout privacy, the soul of the Internet is gone. But we will keep running down the road of alienation from the Internet. Will Blockchain repeat the old history? Can it help in rebuilding the wall of privacy preservation?

Oracle: the Bridgehead of Blockchain-based Privacy Protection

From the very nature of Blockchain, there will be a high possibility that freedom and privacy preservation could be well established. The reason for this is that, except for some POW-based public Blockchains which severely rely on the hardware of mining. From the physical and systematic level, most Blockchains only need node software and personal device terminals whereas the traditional Internet merely acts as the basic communication channel (In case direct communications between nodes could be realized, there will be no need for reliance on the Internet). Besides, unique features of Blockchain technology including timestamp block structure and hash formulas provide a layer of basic privacy protection for the info written on the whole blockchain. Image for post

However, for a transparent public ledger, if info leakage happens in any ring of the whole chain of transactions, the whole transaction circle will be no longer safe and privacy-preserving. With the development of the whole blockchain industry, on-chain and off-chain transactions become more and more frequent. There are risks of privacy violation and data leakage such as the hacking of KYC database of centralized exchanges. Also during the on-chain and off-chain data interacting in commercial applications, there are basically inevitable risks of privacy compromises such as oracles. To conclude, currently existing privacy protection in blockchain is preliminarily a pseudo-anonymity as it fails to realize real privacy-preserving.

In fact, in all the application scenarios of blockchain, privacy protection is nothing but satisfactory. For now, on-chain transactions are self-consistent closed circles. Users can only be able to obtain privacy protection through decentralized exchanges and public-chains of privacy and anonymity. But in terms of commercial applications where the interaction between on-chain and off-chain data acts as the core functionality, due to the need of direct interaction with off-chain & real-world data, privacy becomes the forefront of blockchain-based privacy preservation. Thus, in practical commercial activities, privacy protection is pivotal to the well-being of commerce, even more important that system security and scalability

ZK Oracle: World’s first real cross-chain Privacy-preserving Oracle Network

For now, oracles like Chainlink, Band and Nest can only provide the basic and already open information such as prices and trading volumes for blockchain applications such as DeFi based on their particular mechanism. But they can’t meet the real commercial demands without exposing user privacy and data under risks of leakage as they are unable to perform desensitization of privacy data.

Thus, it’s set that the aforesaid oracles can’t be put into massive adoption in real commercial applications. The reason for this is that, current oracle services can only provide open and transparent data feeding services which will cast huge leakage risks for user privacy and data, including users’ real KYC information.** In contrast, ZK Oracle will build the world’s first cross-chain privacy-preserving oracle services for users by combining Polkadot cross-chain technology and privacy protection technology by SERO, with hope to facilitate the real application of Web3 in real commercial application.**

Different from the 90%+ oracle machines in the market that focus on providing data services for DeFi, the ZK-Oracle network focuses on the universal connectivity between blockchain and real-world information. It aims to break the final barrier between the blockchain and real-world, and accelerate the adoption of the blockchain to daily economy through the privacy oracle network.

The core features of ZK-Oracle include but are not limited to the following:

1. General oracle network based on privacy protection;

2. A data matching mechanism based on community autonomy and self-sustainment;

3. Strengthen support for non-fungible tokens (NFT) and DeFi data privacy.

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Oracle, the solution to data interaction between blockchain and real-world data, is the bridge connecting on-chain world and off-chain real world, and a pivotal component of expanding blockchain-based applications. Defects of traditional centralized oracles such as single-point faults and data source authenticity are fatal as these issues can not be resolved due to their very nature.

Decentralized ways of data acquiring and node governance offer oracles with more potentials. The whole blockchain industry is still in its early stage of development, and the key technologies are far from mature enough. For now the mainstream decentralized oracles are not that satisfactory in terms of user privacy protection and massive adoption. ZK Oracle is the explorer of a whole new generation of oracle.** ZK Oracle will be dedicated in offering solutions to user privacy protection and massive adoption based on Polkadot para-chain and SERO’s anonymity smart contracts while empowering the dynamic development of NFT ecology.** Besides, ZK Oracle will be able to disrupt the direct mapping relations during interaction of on-chain and off-chain data during a real commercial environment in a way of realizing privacy protection without affecting user experience while satisfying user demands.

Token Ecomomics

1. Token Metrics

Ticker: ZKT   Token type: POLKADOT   Total Tokens: 100,000,000

ZKT is the only native utility token on the ZK-Oracle platform, with a total supply of 100 M. ZKT will be first issued on Ethereum and then migrate to the substrate chain when the mainnet is live. The token distribution and token metrics are detailed as below:

Mining Rewards: 40% (10% unlocked on listing, then 10% quarterly)

Team & Advisors: 8% (25% unlocked on listing, then 25% quarterl)

Zk-Oracle Foundation: 22% (25% unlocked on listing, then 25% every 6 months)

Community Donation: 20% (5% for the pre-round, 30% unlocked on listing, 30% and 40% will be released after the third and sixth months respectively; 15% for the public offering, no lockup)

Liquidity Pool: 10% (20% unlocked on listing, then 20% quarterly)

Early stage mining adopts a system subsidy model. ZKT does not need to pay for data request mining, and only needs to stake a certain amount of ZKT. Later, ZKT can choose long-term subscription or one-time payment mode (need to pay a small amount of tokens) to extract data according to the frequency of personal data demand.;

ZKT is also accompanied by a burning mechanism in many usage scenarios. The burn will stop when the burned quantity reaches 50% of the total tokens. After that, ZKT tokens will be circulated among service providers, users and the secondary market.

2. Application Scenarios and Value of ZKT Tokens

1. ADP Qualifications Auction

Use ZKT to participate in the monthly ADP (General Data Provider) qualification auction. The starting price is 0.1ZKT. The ZKT participating in the auction will be burned by 20%. The upper limit of the number of ADP qualifications for the first time is 309, and the upper limit of the number of ADP qualifications each time will be adjusted according to the results of the last auction, at the same time the upper limit of the number of ADP auctioned every 3 months will increase by 1.618%;

2. Receive Data

ADR (Application Data Requester) can obtain data services without paying native tokens during the mining cycle. The income of the oracle node is subsidized from the part of reserved tokens for mining. After the mining cycle ends, the data can be obtained through staked ZKT. At least 1ZKT is staked each time, which is deducted from the staked ZKT. 20% of the consumed ZKT will be destroyed and distributed to the oracle node that provides the service;

3. Mining Rewards

The mining emission is released linearly every month, and the mining income is shared according to the percentage of the data provided by ADP;

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