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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 Data Ownership Protocol funding will support the project'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 Data Ownership Protocol 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 Data Ownership Protocol'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 Data Ownership Protocol 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 Data Ownership Protocol 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 Data Ownership Protocol 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.
What are Ethereum Token Standards?
Ethereum token standards are predefined rules and guidelines that developers follow to create and manage tokens on the Ethereum blockchain. These standards ensure interoperability, security, and functionality across different tokens and decentralized applications (dApps) within the Ethereum ecosystem. By adhering to these standards, developers can create tokens that can seamlessly interact with other tokens, smart contracts, and applications on the network.
Key Ethereum Token Standards
ERC-20 (Ethereum Request for Comment 20):
Overview: ERC-20 is the most widely used token standard on the Ethereum blockchain. It defines a common set of rules that all fungible tokens must adhere to.
Features: ERC-20 tokens are interchangeable and have the same value. They support functions like transferring tokens, checking balances, and approving token spending by another account.
Use Cases: Commonly used for creating utility tokens, ICOs (Initial Coin Offerings), and DeFi (Decentralized Finance) projects.
ERC-721:
Overview: ERC-721 is the standard for non-fungible tokens (NFTs), which represent unique assets that cannot be exchanged on a one-to-one basis with other tokens.
Features: Each ERC-721 token has a unique identifier and can have its metadata, making it ideal for representing digital art, collectibles, real estate, and other unique items.
Use Cases: Popular in the digital art and gaming industries, enabling the creation of NFTs for digital artwork, in-game items, and virtual real estate.
ERC-1155:
- Overview: ERC-1155 is a multi-token standard that allows for the creation of both fungible and non-fungible tokens within a single smart contract.
- Features: This standard provides efficiency in handling multiple token types and reduces the complexity and costs associated with deploying and managing separate smart contracts for different tokens.
- Use Cases: Frequently used in gaming and virtual worlds where a single contract can manage various types of assets, such as currencies, weapons, and unique items.
ERC-777
- Overview: ERC-777 aims to improve upon ERC-20 by introducing more advanced features and providing a more flexible and secure token standard.
- Features: It includes functions like hooks for token transfers, which can notify smart contracts and accounts when tokens are sent or received. It also supports backward compatibility with ERC-20.
- Use Cases: Suitable for more complex token functionalities and applications that require enhanced security features.
Importance of Token Standards
Ethereum token standards are crucial for the growth and stability of the blockchain ecosystem. They provide a common framework that promotes innovation while ensuring compatibility and security. By following these standards, developers can create tokens that easily integrate with existing infrastructure, such as wallets, exchanges, and dApps, fostering a more cohesive and efficient blockchain environment.
