[RFC](Non-Constitutional) Proposal: Integrating zkTLS-Powered Oracle Solution (zkFetch) for Arbitrum

Hey @mr-unomi - appreciate the willingness to modify the original proposal. I think that change will go a long way with the DAO, and as such feel a lot more comfortable supporting the proposal.

Also, thank you for the additional context on the grant situation.

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We believe in the importance of zero-knowledge proof in preserving privacy. The zkFetch implementation could be a promising implementation for Arbitrum.

However, we want to question whether going through DAO funding is the best way to bring this proposal forward. For instance, will the 10k budget a month post-development be enough to ensure the strategic development of zkFetch within Arbitrum? Or will it just be basically maintanance costs?

We believe it is important to ensure the solutionā€™s long-term sustainability and strategic development beyond maintenance.

Furthermore, this proposal also inherently ties up the technology to the provider mentioned, while we would rather frame this development as an open-source public good for the ecosystem.

Have you approached any project on Arbitrum that could be interested in moving forward to an MVP?

For this reason, we invite you to reflect on the proper way to present this solution, which could perhaps be reframed differently.

We are not sure if itā€™s appropriate or feasible for the DAO to finance this kind of proposal at this time. There should be a committee to evaluate it and ensure that what the author is sharing is true and accurate. Please donā€™t take this as disbelief, we personally think this is a very well-written proposal, and the product youā€™re developing is very appealing. However, we think you should wait until a program to fund these kinds of projects opens again.

Thank you for the proposal. We recognise the benefits of zkTLS-powered oracle in improving security and agree this service would be a valuable addition to the Arbitrum ecosystem.

Can you provide a comparison table or brief explanation of your positioning vs your competitors?
In essence, the goal is to understand why your solution is different and better. We believe this would be useful information for delegates when considering giving you a grant.

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Hey @karpatkey, Thank you for your question about zkFetchā€™s positioning compared to other oracle solutions.

To illustrate zkFetchā€™s positioning, hereā€™s a comparison table highlighting key features against major competitors:

Feature zkFetch (Our Solution) Chainlink (zkTLS in development) Pyth UMA
zkTLS Implementation :white_check_mark: Production-ready :arrows_counterclockwise: In development :x: Not using zkTLS :x: Not using zkTLS
Market Adoption (zkTLS) :white_check_mark: 30+ projects, 5+ prediction markets :x: Not yet available N/A N/A
Cryptographic Verification :white_check_mark: Zero-Knowledge Proofs (~4 sec proof generation time) :arrows_counterclockwise: Planned (zkTLS version) :x: Different approach :x: Different approach
Privacy Preservation :white_check_mark: High :arrows_counterclockwise: Expected high (zkTLS version) :x: Limited :x: Limited
Data Source Flexibility :white_check_mark: Any HTTPS endpoint & Public data :white_check_mark: Wide range (current version) :white_check_mark: Wide range :x: Limited
Cross-Chain Compatibility :white_check_mark: High :white_check_mark: High :white_check_mark: High :white_check_mark: Moderate
Custom Data Processing :white_check_mark: Advanced :x: Limited (current version) :x: Limited :white_check_mark: Flexible (Optimistic Oracle)
Decentralization :arrows_counterclockwise: In Progress :white_check_mark: High :white_check_mark: High :white_check_mark: High
VRF (Verifiable Randomness) :arrows_counterclockwise: In Development :white_check_mark: Available :x: Not Available :x: Not Available
Cost Efficiency :white_check_mark: High :x: Moderate :white_check_mark: High :white_check_mark: Can be high
Developer Integration Ease :white_check_mark: High :white_check_mark: High :white_check_mark: High :white_check_mark: Moderate

While we are making progress toward full decentralization, which will be achieved soon, our core technology already offers unique advantages in data integrity, privacy, and flexibility.

We aim to integrate zkFetch to enable trending use cases such as prediction markets to access over 100 data feeds on Arbitrum, providing seamless integration and enhanced functionality.

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Hello! Thanks for your proposal and the additional info provided in your answers! I would like to add a few more:

  • Oracles is a hard arena to compete. Can you provide a list of which protocols within the Arbitrum ecosystem could benefit from your solution at the current state (~5 seconds refresh)? (trying to assess the current market size)
  • Besides the development of a lower refresh time, which other strategies are outlined to increase the target market?
  • Are you aware that the DAO is currently in a detox period that may impact your proposal?
  • If I got the timeline right, we are talking about 6-7 months until deployment and after that a 12 months support of 10k from the DAO. Is that correct?

Thanks in advance!

thank you for the comparison table @mr-unomi - itā€™s indeed very useful.

A follow-up question: can you expand on your market adoption?

Thank you for your proposal regarding this excellent new technology. We agree that enabling use cases such as prediction markets, tokenization of real-world assets (RWA), and AI applications is crucial for future developments!

We have a few questions weā€™d like to ask.

First, while the Motivation section explains the specific logic behind why Arbitrum should support this technology, we didnā€™t understand whether this technology is truly necessary. Specifically, why Arbitrum? Is the value provided by this technology addressing issues within Arbitrum? If these issues arenā€™t currently being recognized, could you share your thoughts on why that might be?

Next, weā€™d like to ask about the economic incentives for Arbitrum to adopt this technology. While we believe it could lead to market share expansion and new use cases, we didnā€™t grasp how it would accrue value back to ecosystem. Could you explain how this technology would be utilized and share your vision for how incorporating this technology would contribute to Arbitrumā€™s growth?