The Data Ownership Protocol (DOP), an Ethereum-based protocol allowing users to manage their public data through zero-knowledge cryptography, has raised $162 million in a highly successful pre-launch token sale of its $DOP token. The sale ranks as the ninth-largest of all time and the first one exceeding $150 million since 2018. The funds will support DOP's expansion operations as the team behind the project gears up for the upcoming mainnet launch in May 2024.
What is selective transparency?
The DOP is a system built on the Ethereum blockchain that allows wallet holders to determine which assets to display. Leveraring zero-knowledge proofs, the protocol grants users control over their blockchain data exposure, letting them decide what information about their transactions and holdings gets revealed on the public ledger.
In the team's own words, the project fosters selective transparency – a deviation from the traditional full transparency approach. With the DOP, users can choose to hide specific details while still proving the validity of their transactions. The protocol is designed to work seamlessly with existing Ethereum tools like wallets, dapps (decentralized applications), EVMs (Ethereum Virtual Machines), and different token standards (ERC-20, ERC721, ERC1155).
The DOP goes beyond a mere protocol, trying to foster a more transparent and equitable digital environment. As the mainnet launch approaches, the DOP team's declared ambition is to impact how data is perceived and managed.
"The milestone token sale underpins DOP's collective belief to leverage blockchain technology to integrate selective transparency and let users choose what information to encrypt and share, striking a balance between privacy and transparency. DOP's vast and vibrant community of 2.7 million testnet users also played a significant role in the token sale, affirming the value and need for user-controlled data in Web3," the press release reads.
The Data Ownership Protocol supports KYC compliance
The DOP openly supports regulation and declares commitment to adhering to present and future compliance standards, including KYC procedures – which may not appeal to privacy-oriented crypto users. Nevertheless, the DOP team believes cooperation with authorities is "crucial for ensuring the enduring prosperity and resilience of Web3."
For transaction authentication, the DOP applies technologies like zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) and ECDSA (Elliptic Curve Digital Signature Algorithm) to keep things tidy on the regulatory side while safeguarding the confidentiality of the underlying data, thus ensuring both privacy and adherence to law.
zk-SNARK – no-personal-data identity authentication
A zero-knowledge proof is a cryptographic technique where two parties can verify a statement's truth without revealing any additional information beyond the statement itself. zk-SNARKs are compact (succinct) and require minimal computational resources. "Non-interactive" means that the proof doesn't involve back-and-forth communication between the prover and verifier. It's a one-shot process.
The zk-KYC procedure implemented by the DOP enables user identity authentication without the protocol having access to a user's personal information – a bridge between regulatory obligations and the DOP's "fundamental principles." However, "more than 90% of token-eligible users are not required to go through the KYC process at all," the DOP project reassures skeptics in a tweet.
