GAINS Associates
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GAINS Associates

DIAdata — Telegram QUIZ & AMA — August 09

On Saturday, August 9, we had the pleasure to welcome to our Telegram chat:

Michael Weber, Association President and
Samuel Brack, Technical Lead and CTO of DIAdata

We asked them questions about the development of DIAdata.

Some sentences have been slightly edited for readability but the meaning has been conserved.

Summary

DIAdata is an open-source financial data provider that brings DeFi usage to a new level with external data that is auditable and verifiable.

The co founders of DIAData joined us in the GAINS community to talk about the features of their DeFi product. With DIAdata, token holders can submit requests in their dispute system in case of wrongly reported data. Token holders can also vote on how to handle the situation.

DIAdata is decentralized so that trust in their system is minimized, but centralized enough so that computations are not completely inefficient.

Introduction

Q — Alex Raffin from GAINS: Can you tell us what you did before crypto, how you got into crypto, and if you’ve had any other venture in crypto previous to being involved with Diadata?

A — Samuel Brack from DIAdata: I am Samuel, the technical lead and CTO of DIA. I co-founded DIA with Michael and Paul in 2018, when we saw the need for reliable open-source financial data for DeFi applications. My background is in computer science research with a focus on security and privacy at Humboldt University Berlin. One of my research projects was the design and implementation of a digital currency for a completely anonymous bonus point program. Recently, I co-authored papers on the anonymization of COVID-19 contact tracing apps.

Samuel Brack, CTO of DIAData

My involvement in crypto began as an academic interest. Especially with the rising of Ethereum, it became clear that there is a decentralization revolution in the making because centralized trust can suddenly be spread on many people.

A — Michael Weber from DIAdata: I come from Physics and Economics, and went into Investment Banking and Financial Data. I started investing in Litecoin (because I thought there was so much more potential than BTC ;) in 2014. I founded the first blockchain company (Samuel also on board) in 2014, focussing on settlement and clearing for loyalty points. It was successfully sold to a traditional supermarket. I’ve been in DIA since 2018. And this one will be really big.

Product

Q — Alex Raffin from GAINS: What is DIAdata in a few simple sentences?

A — Samuel Brack from DIAdata: DIA is a democratic, bottom-up financial data provider that brings Defi usage to a new level with external data that is transparent and verifiable.

Q — Telegram user U Fig: On the spectrum of centralization and decentralization, where does DIA stand, and can Blockchain work efficiently in a completely decentralized manner?

A — Samuel Brack from DIAdata: We are decentralized so that trust in our system is minimized, but centralized enough so that computations are not completely inefficient.

Q — Twitter user @Gladushka_Tanya: What is the main difference and advantage of DIA oracles compared to Chainlink or Band?

A — Samuel Brack from DIAdata: Our system is completely auditable and data streaming through our databases is verifiable by a hash that we will publish daily on the blockchain. We believe in hybrid off-chain and on-chain systems that only put these tasks on-chain that are required to prove the completeness and immutability of our data. This makes our system very efficient because our data aggregations, source selection, and data cleaning happens off-chain and does not require any gas before it is posted as a final value into the oracle.

Q — Telegram user Alejandro Urich: Why should we invest in DIA? Is the data market really wide in the world of cryptocurrencies? Do you think the institutions will decide to adopt DiaData?

A — Michael Weber from DIAdata: Trusted data, in particular in DeFi where you can’t pull the plug, is crucial for all dAPPs building on it — and with DIA you find quite a radical and different approach on financial data (coming from a guy who worked at Bloomberg).

Q — Twitter user @maikimphuong1: How will DeFi reshape financial services, and how can DIA help?

A — Samuel Brack from DIAdata: DeFi will bring the opportunity to democratize financial instruments. With decentralized trust systems, anyone can become an issuer of loans, assets, or derivatives. Due to the possibility to build-in safety mechanisms like guaranteed collateral collection, it becomes possible to operate on very low costs because many costly regulatory requirements from centralized finance are simply replaced by a few lines of open-source smart contracts.

With the rising number of Defi instruments, there is also a growing demand for reliable and trustworthy financial data to properly operate. This is where our product of verifiable financial data oracles comes in. We offer a great tool for anyone to build Defi products upon.

Q — Alex Raffin from GAINS: Yes. Very curious to see how that can change things for banks and the classic world. Right now, it feels like it’s still an experiment but maybe in 2 or 5 years it’ll be different and will change society, who knows.

A — Michael Weber from DIAdata: This will take some time, but the interest we see in yield products bridged to traditional ISIN/investment products as well as the usage of Oracle for Auditing is quite strong. So there’s a lot to come, but in particular for structured products and passive products, this will change the industry, IMO.

Q — Telegram user Rohit: What mechanism do you use to verify the quality of data?

A — Samuel Brack from DIAdata: We use multiple mechanisms:

1. a community-driven voting mechanism to prevent malicious data sources from being added
2. internal technical mechanisms to clear outliers and data that don’t align with data collected from other sources.

By that, we can ensure a high quality of data

Q — Telegram user Belov: What are the criteria for choosing data sources and interesting assets for Defi? How will the DIA ensure the accuracy of the data obtained at the collection and methodological level?

A — Samuel Brack from DIAdata: The most important criterion is the demand for data. If a DeFi product needs to have data for gold futures, we can integrate that as well. We are currently building a hash-tree verification mechanism so that anyone can prove our data is immutable.

Q — Telegram user Emi 💌: In what ways does DIA data protect data integrity? If a user suspects wrongly reported data, what steps should be followed?

A — Samuel Brack from DIAdata: We will launch a dispute system where such requests can be made. All token holders then can vote on how to proceed with the issue.

Q — Telegram user Ivan Letov: How good is the DIA UX? How easy is it for a non-crypto user to connect and understand DIA? Does the system of checking the integrity of your entire database work in a smart contract?

A — Samuel Brack from DIAdata: UX is a focus we need to take on in the next steps. Our API is certainly easily usable for a developer, but for a non-developer, the concepts of such an API might be challenging. The oracles are easily usable for anyone who can deploy a smart contract, it is just a function call.

The integrity check will work with Merkle trees, whose roots are published on-chain, so yes, the verification will include an on-chain component.

A — Michael Weber from DIAdata: While we use GNOSIS and Uniswap via secondary markets, you are highlighting the major flaw and product need for this and the upcoming years: UX! If you pay $30 in gas and need 3 transactions to invest — even though all of us are fans of DeFi, this won’t convince the mass market

DeFi has reached assets under management in the current state — but this is just building on one asset class: Loans. And these loans work very differently than going to a bank, faster, more efficiently, and also open to traditionally unbanked clients. But to go into loans just highlights the major benefit of DeFi, which lies in structuring, settlement, and clearing of financial products. The market for this, as well as the way CFI does this, is massive (look at BlackRock). So I think while Revolut, N26 targeted the retail bank account, this is going into the heart of Finance. Also, in my opinion, working in this space for decades, there’s not a lot to learn from CFI at the moment — with the monetary policy since COVID, we are in an unprecedented space.

Technology

Q — Telegram user Andrey: How will the hybrid model effectively address the scalability and centralization threat? What technology do DIA oracles use to save gas? Does DIA plan to launch its own blockchain nodes for independent data collection?

A — Samuel Brack from DIAdata: With the hybrid model, we aim to do as much computation off-chain as possible without losing the ability to prove that no malfunctions or attacks were conducted by storing certain selected data on-chain.

For gas-saving, we try to minimize the calls we need to make. We are also looking into more efficient on-chain data structures right now (for example only sending price deltas and not completely new prices).

Yes, we already run some blockchain nodes to be able to collect data at the source.

Q — Telegram user Kaushal chauhan: What role does prophecy solutions play in using DIAdata financial information in any smart contract? How can the non-chain API and Oracle data be monitored and verified?

A — Samuel Brack from DIAdata: For our non-chain data, we are currently building a hash-tree based verification system whose proofs are stored on-chain. By that, we will be able to prove that our database is immutable for a fraction of the cost of storing everything on-chain.

Security

Q — Telegram user Titan: How does DIA ensure the highest security for our products?

A — Samuel Brack from DIAdata: Security: We have a highly skilled team of engineers that designed a very compartmentalized IT architecture for our off-chain components. For our token contract, we published an audit. Our code is also completely open-source. The community can look for vulnerabilities and be a part of fixing them.

Q — Telegram user Ashwini: How does the DIA project protect data integrity? How can the community resolve any faults?

A — Michael Weber from DIAdata: Check this one as an example.

Q — Telegram user Titan: How does DIA handle liquidity and risk issues when accessing security protocols on Ethereum?

A — Samuel Brack from DIAdata: Liquidity risks: We scrape financial data. If there are liquidity issues they are also part of the market. We can also detect flash crashes and other erroneous events and prevent them from spreading by clearing outlier data. By that, we can mitigate these risks.

Partnerships

Q — Twitter user @doilakhoc: Do you have any partnerships with other projects to focus on in the near future?

A — Michael Weber from DIAdata: Yes. Since we have been building this since 2018, with a particular focus on compliance. First partners came from the more traditional finance space (check our Github for info and links), but pretty much exchanges and price auditing via Oracles. Since we started a refocus and provision of DeFi datasets, there’s been a particular focus on the partnerships, from Outlier Ventures to Chinese protocols. For this, the governance token is currently distributed — we aim to be a decentralized organization and need as much input from the ecosystem as possible. For continuous news, check out our Telegram. Also, we opened an Ecosystem pool, open for applications.

Finances

Q — Telegram user Doctor Crypto mangunkusumo: In your website, DIA is a Swiss non-profit organization. In what way does DIA maintain the project?

A -Michael Weber from DIAdata: We have a mission: Building the Wikipedia for Financial data. While the Association really aims for decentralized governance (from a legal point), maintaining the model is based on our Utility Token, and the value created for us and the ecosystem in there. Currently, with the bonding curve offering, we are financed with the team + growth (we are looking for developers!) for the next 32 months.

Business Development

Q — Telegram user ✿ 𝙟𝙤𝙗𝙚𝙡❤ | Satoshi Club: What is the potential customer or client that DiaData is focusing on? What is your strategic marketing plan to attract more users to your platform?

A — Michael Weber from DIAdata: In the end, we hope this also includes you. While we currently focus on DeFi and CFI in the asset management, trading space, there’s a lot more to come with the uptake of DeFi and the need for open-source oracles.

Q — Telegram user Alejandro Urich: How do you feel about the $DIA sale after working for so long? Has it met your expectations?

A — Michael Weber from DIAdata: After some initial hick-ups, the sale definitely met our expectations. You can find current stats here. This is of course fully building on DeFi, from DEXes, bonding curves to Metamask/web3 — still, in particular, a lot to do on UX and gas fees.

Samuel and Michael, it was a pleasure to have you here. It was a very technical event, clearly showing you know what you’re talking about and building strong tech! Is there anything else you’d like to say? Where can we follow DIAata? — Alex Raffin from GAINS

It was great to be here, thank you so much for the opportunity and the very interesting questions! Stay up to date on DIA’s developments, news, and releases:
Token Offering Overview
Telegram
Twitter
— Samuel Brack from DIAdata

Join us now! Enjoy quality articles, daily curated news, insightful infographics, and enter a vibrant, fun, and knowledgeable community!

If you want to email us: contact@gains-associates.com.

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