Data and Blockchain
With the rise of smart contracts, oracles have revealed themselves as being a key component in which blockchain realizes its true potential of facilitating the next evolution of how we transact information and value. As data begins to shape how we interact with each other and steers economic decision making, the marriage of big data and blockchain will signal a process in which trust will become quickly and more efficiently verifiable without the need of expensive and monopolizing intermediaries. Anyone with an internet connection and smartphone will be able to participate in the trustless economy that will connect billions across the globe. This is fundamentally what the rise of blockchain has promised.
However, oracles are still limited in their current scope over the data economy. This stiff bottleneck is largely due to the lack of incentivization for data providers to produce and deliver quality data into the market.While there are many oracle projects out there, most of them do not have a seamless means in which data providers can monetize the oracles they create and deploy it to the general markets.
Zap Protocol and Data Monetization
Fortunately, Zap Protocol is leading the way forward to incentivize data providers to create oracles for the blockchain economy. The Zap Oracle Marketplace features a robust and feature rich ecosystem in which data providers can connect their endpoints to deploy oracles in a permissionless and profitable manner. Zap Protocol features a fully liquid decentralized exchange that is powered by bonding curves in which data providers can push their endpoints into a marketplace . One of the primary functions of the platform is the ability for data providers to sell their data on the DEX in a permissionless manner.
To understand how to profit off the Zap Platform as a data provider, it is necessary to understand some foundational attributes and functions of Zap Bonding curves and their deterministic and algorithmic price trajectory. Including the sub-tokens to mint called “DOT.” Please refer to other articles explaining Zap Bonding Curves to get a pre-request understanding of some of the mechanics and functions, here.
On the Zap Platform, the data that providers deploy to the Zap Marketplace are queried by subscribers using a subtoken called “DOT.” With these DOT sub-tokens, subscribers can use them to query data into their applications. DOTs can be redeemed for a single query or can be used for as a subscription basis through a determined set of blocktime. DOTs can also be used for speculative purposes.
With that in mind, it is important to stress that in order for a provider to be able to profit on a given Zap Bonding Curve, they must obtain DOTs just as the rest of the market must do so in order to speculate. Therefore, if desired it is important for the provider to make the initial bonding process cheap so they can bond to the curve and receive DOTs at a lower rate. The image above depicts a curve in which the first 200 DOTs are extremely close to 0 Zap price. This ensures that the provider can bond cheaply to the curve. This could be thought as akin to a company reserving a determined amount of stock before launching sale to the general public.
Once a provider deploys a curve they are prompted to make the initial bond to the curve. Getting this part right is essential for any provider seeking to profit off their curve. The provider should ensure that they could bond to the curve cheaply for the DOTs they wish to hold to speculate .So in order for the provider to make a profit, they would first bond earlier as laid out. The provider would then be able to speculate on the curve and decide to unbond or sell at a point that is desirable. For an example, the provider can choose to sell as the curve approaches the 1,000 Zap per DOT point of the curve.
Zap.org already has a functioning platform portal, however in Q1 of 2021, Zap Protocol intends to release a 2.0 launch of the platform with an updated UI and additional services throughout the upcoming quarter. Stay tuned on the Zap Protocol socials on all upcoming feature releases and community updates.
Website: Zap.org
Twitter: @ZapProtocol
Discord: discord.gg/pvHzemX
Telegram: t.me/ZapOracles
Reddit: r/ZapProtocol
Facebook: @ZapProtocol
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Medium: The Zap Project
LinkedIn: Zap
GitHub: The Zap Project
