Unlike most existing oracle projects that focus on DeFi, ZK-Oracle focuses on the universality of applications, so the coverage of ecosystem applications is much larger than the current mainstream oracle projects.
The Ecosystem of Zk-Oracle
The decentralized prediction market, i.e. economic activities based on distributed technology and user’s prediction and judgment of future events, overlaps with gambling to some extent. The rise of the decentralized prediction market originates from the user's crisis of trust in the traditional prediction market controlled by centralized organizations. Black-box operations and non-transparency are common in traditional prediction markets. Using the blockchain to reinvent the prediction market, the open, transparent, and non-tamperable characteristics of the blockchain will have its place. The actual final results provided by ZK-Oracle can also dispel user’s doubts when the results are announced. The prediction market will be the first application implementation in the ZK-Oracle direction plan.
ZK-Oracle can provide real-time off-chain asset price query services for smart contracts such as derivatives trading platforms to determine the gains and losses of all parties involved in the transaction, and to confirm the transaction trigger status of opening and closing positions.
Stablecoin is a cryptocurrency with a stable exchange rate with legal fiat currency. Stablecoin can be used as an intermediate medium for storing value and trading. At present, many stable currencies no longer choose to use the method issued by centralized institutions like Tether, but instead adopt cryptocurrencies that are automatically controlled by a specific decentralized algorithm, for example DAI, a stable currency based on cryptoasset collateral. ZK-Oracle can obtain data such as the stable currency itself and the exchange rate of pegged assets for such stable currencies.
At present, the decentralized P2P lending platform represented by ETHlend supports the cryptoasset mortgage lending business. Users can borrow legal fiat currency or other crypto assets by mortgaging the corresponding cryptocurrency. Due to factors such as excessive fluctuations in the price of cryptocurrencies, such application requires real-time monitoring of staked and loaned cryptocurrency prices. ZK-Oracle can provide the required real-time query function of cryptocurrency price data for the lending platform, and help the platform monitor the margin ratio of crypto collateral, issue a warning when the margin is insufficient, and trigger the liquidation process to ensure the smooth operation of the platform. In the future, the lending platform can also use ZK-Oracle to import borrower’s social, credit and identity information to determine different loan interest rates
The decentralized insurance application platform based on smart contracts can automatically pay according to insurance agreements, which is more efficient and transparent than traditional insurance platforms. An important part of realizing decentralized insurance business is the judgment of the introduction of external data sources and events and the conditions of compensation. ZK-Oracle can help decentralized insurance products obtain external data and make judgments on whether to pay.
In the current purely deterministic environment of the blockchain, the random numbers generated are actually pseudo-random numbers, so it is difficult to achieve absolute fairness when applied to gaming applications. ZK-Oracle can inject a safe and reliable unbiased verifiable random source of entropy from outside the chain to the gaming contract.
Courier delivery or arrival information in the real world can be transmitted to the chain through ZK-Oracle, triggering the automatic payment of the smart contract on the chain. For IoT applications on the blockchain, ZK-Oracle can transmit sensor information outside the chain to the chain, allowing the smart contract to verify and trigger the next action.