Oracle Integration

Oracle Integration in Asset Contracts for Official Approvals

The integration of oracles into our asset tokenization platform plays a pivotal role in the verification of asset prices. This system allows users to obtain official approval for their asset valuations, which are then represented as zero-knowledge proofs with additional encrypted data on the blockchain. The documentation outlines the workflow, data flow, and contract structures involved in this process.

Overview of Oracle Integration

1. Purpose: Oracles serve as a bridge between external verification entities and the blockchain, providing a reliable way to upload and verify asset prices.

2. Functionality: The system enables users to verify the prices of their assets through official approvals, which are then integrated into the asset tokenization platform as zero-knowledge proofs.

3. Dual Pricing Mechanism: The platform distinguishes between two types of prices for each asset - the 'last-approved-price' and the 'listing price'.

Workflow of Price Verification

1. Asset Valuation Approval:

   • Users obtain an asset valuation from one of the many verified entities partnered with our network.

   • The approval entity assesses the asset and determines its market value.

2. Zero-Knowledge Proof Creation:

   • The approval entity generates a zero-knowledge proof for the valuation. This proof attests to the accuracy of the valuation without revealing sensitive details.

   • Additional data related to the approval is encrypted to ensure data integrity and security.

3. Oracle Upload and Verification:

   • The zero-knowledge proof and encrypted data are uploaded to the oracle network.

   • The oracles in the network verify the integrity and authenticity of the proof.

4. Blockchain Integration:

   • Upon successful verification, the proof is automatically uploaded into the asset contract.

   • A tag, along with an expiration date set by the approval entity, is added to the asset, marking it as "verified".

Asset Contract Structure with Oracle Integration

1. Last-Approved-Price Management:

   • The asset contract maintains a 'last-approved-price', which is updated only upon receiving confirmation from at least 2/3rds of the oracle signatures.

   • This price is crucial for functionalities like loans and staking, where a verified asset value is necessary.

2. Listing Price Flexibility:

   • Users have the freedom to set their listing prices for assets independently of the last-approved-price.

   • The contract allows for the distinction and independent management of these two price types.

Contract Functions for Oracle Integration

1. Update Verified Price:

   • A function to update the last-approved-price in the contract based on oracle confirmation.

   • Includes checks for the required number of oracle signatures.

2. Zero-Knowledge Proof Handling:

   • Functions to handle the submission, verification, and storage of zero-knowledge proofs within the contract.

3. Tagging and Expiry:

   • Mechanisms to tag an asset as "verified" and track the expiration date of this verification status.

Data Flow and Security

• Secure Data Transmission: Ensures that the data flow from the approval entities to the blockchain is secure and tamper-proof.

• Data Privacy: Zero-knowledge proofs and encryption methods protect the privacy of asset valuation data.

• Smart Contract Security: The contract includes safeguards against unauthorized updates and ensures only verified data affects the asset’s status.

Conclusion

The integration of oracles for price verification introduces a robust layer of trust and authenticity to the asset tokenization platform. By enabling official asset valuations to be securely and transparently integrated into the blockchain, the system enhances the credibility and functionality of the platform. This oracle integration, coupled with advanced cryptographic techniques, ensures that the platform remains secure, reliable, and user-centric in its approach to asset valuation and management.