Zap Components #2: Data

Data is the new gold. We hear this all the time. And thats because it's true. We only have to look at the power of the likes of Facebook and Google, or at our utmost reliance on the internet, to validate that claim.

Oracles

In blockchain, that is no different. It is no wonder oracle networks are experiencing such a rush of interest. This is because blockchains can’t access data on their own. They need oracles to do so.

Ask yourself: What is a smart contract worth without the flight information it needs to pay out insurance for your flight that was just cancelled?

Data is also an important component of the Zap Protocol. In fact, Zap was originally designed as a decentralized oracle platform, where everyone can buy and sell data without permission. As we now know, it became the first in history to do so.

But that’s not all

Zap Protocol oracles, however, are different. They have a variable pricing mechanism built in that users can bond and un-bond to. These can be set to incentivize early adoption, and with it the creation of other, better oracles. Because you can design your own if you can think of a superior model, or perhaps need something custom. Or you can use someone else’s ready-made templates, like that of a multi-party oracle. It only makes sense the most useful and trustworthy oracles will make their owners the most money.

As you can bond and un-bond money to the oracles’ (optional) variable pricing system, this also turns them into potential investment vehicles (yes, you can actually speculate on a Zap oracle!). Which we can, in turn, use to ‘curate’ the value of the underlying data, or oracle model. This facilitates genuine price discovery possibilities on the protocol. Meanwhile, this system doubles as a decentralized ‘trustworthiness index’, where the longest running oracles with the highest amount bonded to them can be considered as most reliable and useful.

…A lot to take in?

There’s more!

During development, however, we found that the unique way in which Zap oracles worked, allowed for use cases far beyond buying, selling, curating and speculating on data and oracles alone.

More on this in our next blog entry: Tokens.

Follow us on Twitter and join the chat on Discord!

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Crypto projects & topics of interest in a non-technical way. Author Twitter: @dave_jonez_02 & @3mperat0r.

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Dave Jones

Dave Jones

Crypto projects & topics of interest in a non-technical way. Author Twitter: @dave_jonez_02 & @3mperat0r.

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