Zennotta, which includes both the Zenotta data protocol and the Zenotta network protocol, raised 10.7 million US dollars in its starting round to solve the so-called “data problem”.
According to Zenotta, the data problem is both simple and complex at the same time.
Data has two main qualities: the ability to contain information and value. This value can be derived contractually, economically, socially or legally.
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Think about how a land deed, for example, is essentially a collection of data that has value because of the asset with which it is associated. Alternatively, think about how your personal information, when aggregated with millions of other people, adds value to social media companies who use it to generate advertising revenue.
“While machines can process information through logic and math, they cannot hold or describe value. This is the data problem, ”said Andrew Kessler, CTO and co-founder of Zenotta.
“Zenotta converts any form of data or digital content into smart data – a competing and exclusive digital asset that is truly unique and can be owned. This ownership gives the smart data value and gives the owner rights and control over their smart data asset. something that was previously unattainable. “
Zenotta has been in development since 2015 and dismantled its Genesis block in early March 2021. Another round of financing is planned for the coming months before the first coin offer is due.
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The idea is to make real assets tradable through blockchain, not just through digital currencies.
Zenotta’s double blockchain with double entry
The Zenotta Digital System consists of the Zenotta Data Protocol (which converts all types of data into Smart Data) and the Zenotta Network Protocol (the PoW blockchain with two duplicate entries in which transactions are carried out).
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A two-entry blockchain is an accounting system developed by Zenotta where the seller pledges a real asset (a file secured by the Zenotta data protocol) to the network and the buyer pledged some native tokens.
This is to correct what the project says are some of the flaws of single entry blockchain ledgers. Kessler points out the shortcomings of NFTs – for example, a “rugpull” scam in which the JPEG associated with an NFT was also changed after it was purchased. The NFT only refers to a file on the Internet that can be changed or even deleted. This is because one entry blockchain ledgers distribute tokens across their network, not the assets themselves.
“Asset distribution is off-chain in the ‘real world / internet,’ far beyond the reach of token-based blockchains,” said Kessler. “This enables the crypto payment to be triggered without the simultaneous distribution of the assets.”
If the network protocol can authenticate both trading halves in Zenotta’s blockchain ledger with two entries, the transaction is packed into a block in which the data asset and the tokens used to pay for the asset are exchanged between two wallets at the same time. Kessler said if an error were to occur, the trade would be rolled back to the seller, who would then stick to their demonstrably tight record while the buyer stuck to their token amount.
“The advantages of double double entry are for both the seller and the buyer. In traditional single bookings, the ledger prefers the seller, ”he said. “In addition, the merging of sales and purchase inquiries into duplicate entries enables programmable service levels and governance without control and pricing, the cornerstone of any capital market.”
“Smart data” against the “data problem”
When thinking of most technologies, analogies help. For example, according to Kessler, there is a huge gap between using fingerprint evidence in a judicial process and using blood DNA evidence. While someone’s fingerprint can be publicly available, their blood isn’t.
“Current attempts to use hashes (file fingerprints) to associate off-chain files with on-chain hashes (or any fingerprint technology) have several technical difficulties that make them undesirable,” Kessler said. “Smart data is based on the idea that the binary DNA of a file both creates the content of the file and uniquely identifies the file.”
This creates a stronger relationship between what is recorded in the ledger and what is happening in the real world, and potentially enables a synchronized off-chain world controlled by on-chain parameters.
Kessler also said there are other benefits that come from smart data.
One is privacy. Existing hashes can be searched backwards if the computing power is sufficient. This means that with enough time, you can figure out what file is outside of the ledger.
“Our file DNA approach guarantees that it is impossible to learn about the DNA of the off-chain file by examining the on-chain entry,” said Kessler. “However, if the file is willingly given for inspection by the owner, it can be demonstrated that it is 100% the digital property of the owner and that it is the correct file as referenced in the ledger.”
A second advantage is that smart data signatures have a modular structure. In standard hash-based data signature schemes, the verifier learns the identity of the signer, the integrity of the file and the file content (message) at the same time – otherwise none of the above points can be verified.
“The modular nature of the smart data signature scheme enables a recipient to determine the identity of the owner regardless of the content or integrity of the file (if the owner wishes their identity to be revealed),” said Kessler.
The same applies to the independent establishment of integrity and access to file contents.
After all, smart data is for files, not just smart contracts, which Kessler calls applications. Bad data can keep track of a smart contract, and Kessler said the lack of data oracalization means it hinders the automated delivery of smart contracts.
“But when the data is intelligent, even ‘dumb’ applications can act intelligently,” he said. “For companies, this is a big deal. Integrating smart data is as easy as defining the storage format. The Enterprise application tier does not need to be updated or changed. “
In a statement accompanying the announcement of the funding round, Zenotta would continue to expand its operations and focus on developing and testing its technology while connecting with its burgeoning mining community. It will also complete its advisory board and strategic partnerships.
Zenotta’s native token is the “Zeno” token, which is used to buy smart data and provide the “gas” for smart data contracts.