From zero-knowledge proofs to cutting-edge smart contracts, and from a powerful token to a focus on compliance, here’s how Data Ownership Protocol works.
DOP’s mainnet breaks new ground by bringing selective transparency to the Ethereum blockchain — meaning wallet balances and transactions are no longer visible to all by default. Our technology is a refreshing alternative to the status quo, and means crypto users finally have control and ownership over their data.
But how exactly does the protocol’s infrastructure work? What makes it different from privacy-focused coins on the market? And how will DOP’s ecosystem evolve in the years to come? Here, we’ll take you behind the scenes of how our tech works — and reveal how it can supercharge the Ethereum and DeFi landscape.
Our encryption technology, decrypted
Through the Data Ownership Protocol, any ERC-20 token can be encrypted so token holdings remain confidential (only 5 tokens are initially supported on the beta version of the mainnet, but additional tokens will be gradually added over time). All of this is achieved in a few clicks through our intuitive dashboard, and in the future will also be possible through native integrations with major wallet providers and DeFi platforms.
Note: Initially, the DOP mainnet offers support for the following ERC-20 tokens: USDT, USDC, DOP, WBTC, and ETH. Additional tokens will be gradually added over time.
Once you’ve opened a DOP wallet and transferred your crypto assets from an external Ethereum wallet, they’re sent to an asset pool that holds all user tokens. Simultaneously, zero-knowledge proofs are generated that verify which digital assets belong to you.
This is where things get clever. When it’s time to send funds from your account to someone else, the transaction is routed through the protocol — meaning there’s no direct interaction with the other wallet. As a result, there’s no on-chain record of the transfer taking place.
It’s like placing your crypto in a magnificent safe that’s completely obscured from public view. And whenever coins and tokens need to move from one vault to another, this is handled through secure channels within the safe, meaning the front door never opens.
Zero-knowledge proofs play a starring role in making all of this happen. This technology allows you to prove who you are, without disclosing your identity. A real-world example would involve being able to demonstrate you’re over 18 while keeping your exact age or date of birth secret. Such cryptography is crucial in reducing the risk of fraud and ensuring that funds are going to the right place, without compromising on privacy.
Meanwhile, ECDSA algorithms are used to create digital signatures that verify the authenticity and integrity of data. Every time assets are encrypted, decrypted or transferred, DOP users generate signed data with their account’s private key, which is subsequently verified by our protocol’s smart contracts. This adds an additional layer of security in a decentralized way.
Safeguards are in place to ensure funds are protected at all times — and a collaboration with Chainalysis means tainted cryptocurrencies are blocked from entering the ecosystem through advanced blockchain analytics. Vigilance against malicious actors, and carefully constructed infrastructure, means DOP’s tools are prohibitively difficult for bad actors to use.
Data Ownership Protocol prides itself on being pro-compliance — and we believe that a balance between privacy and accountability is crucial. By continually monitoring for suspicious transactions behind the scenes, we allow our users to benefit from the same protections offered through traditional bank accounts, and shield their wealth from fraud.
A dedicated token
At the beating heart of our ecosystem is the DOP token, which is used to pay transaction fees. They stand at 0.1% of the value of the assets being encrypted or decrypted, plus 10 $DOP. There’s also a 10 $DOP fee for sending crypto to others.
Whenever fees are paid, 75% is used to buy back and burn DOP tokens — reducing the supply that’s in circulation. Meanwhile, the remaining 25% is earmarked for rewarding those who stake this cryptocurrency in a huge vote of confidence and belief in what our project is trying to achieve.
When the DOP DAO will be established, this digital token will also reward the elected committee of members who will be tasked with monitoring the platform for risks, and executing key improvements to the protocol.
While privacy coins and mixers do exist for those who want to obfuscate transactions, they are often incredibly complicated to use — meaning funds are at risk if something goes wrong. Some platforms, like Tornado Cash, have also faced sanctions from the US government. DOP offers a different approach by delivering a user-friendly interface, complete with regulatory compliance so crypto owners everywhere can depend on our technology with confidence.
What also sets Data Ownership Protocol apart from other solutions lies in the many features on our extensive roadmap — and our laser-like focus on accessibility. DOP has been built on the Ethereum blockchain, the second-largest in the world, and will soon be available to millions of users through the wallets they already use every day. In future phases, we’re going to roll out the ability to display partial information about wallet balances and the tokens you own — and it’ll be possible to completely personalize what’s disclosed to third parties. Also in the pipeline is a cutting-edge ability to encrypt NFTs, which will prove to be especially useful for collectors who want to keep valuable pieces of digital art safe.
Currently, many users in the crypto space end up having numerous crypto wallets and scattering their digital assets in multiple places, in an effort to protect their funds and keep them prom prying eyes. However, not only does this open up new attack vectors, but keeping track of each and every seed phrase amounts to a logistical nightmare. DOP simplifies all of this by ensuring that ERC-20 tokens can be kept in a single wallet and protected through world-class encryption, allowing users to selectively disclose their holdings. This offers greater protection against scammers who target victims based on their holdings, and allows users to maintain their financial privacy. In the future, dApps and DeFi platforms will be a part of our ecosystem.
DOP delivers capabilities that the crypto community has only dreamed of, and eliminates pain points that have existed for years. Countless consumers who are curious about digital assets and blockchains have been deterred from getting involved because of over-transparency — and an inability to keep their financial affairs confidential. DOP now gives them a long-awaited way of gaining exposure to the future of finance, without their data being broadcast to the world. This could catalyze adoption of Ethereum and DeFi services like never before, bringing millions of people into the industry. And as with many new technologies, it’s inevitable that even more exciting use cases will emerge over time — opening the door for tokenized real-world assets, real estate deeds and other confidential files to be stored privately and securely on-chain.
In recent years, we’ve all seen the devastation that can be caused through data breaches, and the importance of protecting personal information. No centralized company cares as much about this as you do, and that’s why we’ve built the tools you need to take back control.
