DAG Blockchain Based Solution for Data Feed from Oracle System

Abstract

The rise of blockchain and smart contracts is expected to revolutionize traditional digital applications, such as identity management, banking, supply chain management and finance by transforming them into Decentralized Applications (DApps). Blockchain interoperability is a vital part of blockchain technology that is becoming popular in many fields. Yet the blockchain adoption is stagnant. This is because decentralized apps (DApps), which run on blockchains made with smart contracts, need real-world authentic data from outside the blockchain to solve problems effectively. This presents a challenge as users are increasingly concerned about their private data privacy and are less willing to share that information. To address this challenging issue, previously a number of solutions have been presented but most of them either require an initial trusted setup to work or they do not offer both data privacy and authentication at the same time. This study presents a new quantum-resistant data authentication and zero-knowledge proof scheme called zk-DASTARK and a framework built upon this scheme, enabling decentralized applications (DApps) to securely obtain authentic offchain data while preserving user privacy. The zk-DASTRAK is made up by extending zk-STARK, a zero-knowledge proof system that guarantees data confidentiality, with a data authentication module. The proposed framework provides superior data privacy and authentication, is resistant to quantum attacks, and does not require a trusted setup, distinguishing it from other existing systems. Future work will focus on optimizing the payload size to enhance transmission speed, reduce storage requirements.