Problem Overview
Blockchain technology empowers the creation of smart contracts capable of governing any arbitrary interaction, and the decentralized application layer built atop is poised to disrupt nearly every arena of human behavior. But for smart contracts to operate based on real world events (and provide the maximum value), they must first receive real world data. For example, an insurance contract must know whether a given reported event meets specified criteria to be “covered” and then other facts in order to anticipate the level of “damages,” and a decentralized energy grid must know the use patterns (i.e., volume and time) for different customers (e.g., residential versus commercial).
Smart contracts can run algorithmic calculations as well as store and retrieve data, but because every node runs every calculation, it’s simply not feasible to make arbitrary requests for data. Oracles resolve this issue by providing the results of any query to any contract. A primary driver of the value of the blockchain is its decentralization; however, the value-add from a decentralized application is greatly reduced (if it isn’t negated altogether) if there’s only a single data source. True trust requires choice; the absence of choices for data extinguishes trust and replaces it with the compulsion of “take it or leave it.” The challenge of devising a scalable method for curating oracles remains.
Prediction market platforms like Gnosis and Augur have proposed to solve the oracle problem by distributing consensus on event outcomes across their userbase. Though this may work well for certain cases, it is slow (requiring days or even weeks before event resolution), unwieldy (requiring the mobilization of thousands of users who are poorly incentivized by a relative pittance), and potentially compromised due to the highly centralized distribution of tokens (in Gnosis’s case, 97.75% of all tokens are controlled by just three addresses).
Aeternity has proposed an alternative blockchain which, they claim, would allow any user to become an oracle. However, this capability is limited to yes/no questions and allows users to contradict one another in proportion to their deposited funds. The danger of enabling well funded users to decide the truth presents a severe credibility flaw and is hardly an ideal scenario.
Oraclize provides services for linking existing APIs to the blockchain, but is limited because it requires data to pass through a single aggregator. Zap’s system includes this model in its set of economic incentives, but only as one of several techniques. Ultimately Oraclize oracles could be sold as individual oracles on the Zap platform.
Though the demand for data by the blockchain is new, data has always been an invaluable resource. Consider the popular legend that following the famous Battle of Waterloo in 1815 (at which British and other continental armies defeated the French army under Napoleon), Nathan Rothschild was able to make profitable stock purchases by learning and trading on the news of Napoleon’s defeat before official word of the news reached England and competing traders. The exact method by which
Rothschild got his information first is still a subject of intense historical dispute, but nonetheless the account illustrates the value of data. We recognize that value; we also recognize the value to our customers in having the best data, and the best choices to source and receive data. We intend to empower smart contracts to utilize any available data.
Mission Statement
Zap’s objective is to be disruptive, driving change in a wide range of global industries, including finance, insurance, real estate, and shipping. Zap will also find applications in dynamic new distributed application protocols, providing new monetization opportunities for individuals and emerging economies. Zap is well-positioned to be the premier provider of data for smart contracts, and stands to potentially monetize any device linked to the Internet of Things (IoT).
Core Objectives
Build a Robust, Source Agnostic Oracle Network
Zap is bringing together the existing wealth of global data with the diverse capabilities of distributed applications by ensuring the secure creation of oracles.
Incentivize Oracle Creation and Curation
Zap is building a global, decentralized data marketplace and populating it with unique incentivization tools, empowering anyone to begin monetizing their data.
Fuel the Next Generation of Embedded Dapps
Zap is supplying a much-needed fundamental piece of the Ethereum ecosystem and the Web 3.0 paradigm, enabling developers to construct Dapps that simply could not function without it.
Zap
