KaratDAO: A Decentralized Bilateral Data Services Marketplace Based on MPC and ZK Technologies
TechFlow Selected TechFlow Selected
KaratDAO: A Decentralized Bilateral Data Services Marketplace Based on MPC and ZK Technologies
KaratDAO, a decentralized bilateral data services marketplace deployed on zkSync.
Navigating Web3 tides with focused insightsAuthor: Sleeping Heavily in the Rain
In traditional internet ecosystems, large centralized companies have access to vast amounts of user data and trap users within algorithmically-driven information silos. This brings with it significant risks to data security and privacy—one well-known example being the Facebook-Cambridge Analytica data scandal. While these centralized platforms offer convenience, they simultaneously exploit user data for greater commercial gain.
Web3 technology offers users a new way to manage and control their own data. Previously, users had to rely on centralized data platforms for storage and processing. Now, with the emergence of more data infrastructure protocols, users can leverage decentralized platforms to take control of their data and determine how it is used.
While this narrative is often repeated, KaratDAO stands out by using MPC and ZK technologies to encrypt user data and perform data validation, ensuring both privacy and security—demonstrating its unique position in the market. Additionally, KaratDAO employs token-based incentives to engage ecosystem participants, effectively addressing the challenge of initial cold-start adoption.
Understanding KaratDAO: A Decentralized Two-Sided Data Services Marketplace on ZKsync
KaratDAO is a decentralized two-sided data services marketplace deployed on ZKsync. By leveraging MPC (Multi-Party Computation) and ZK (Zero-Knowledge Proof) technologies, it establishes a decentralized on-chain data identity protocol that safeguards the security and privacy of users’ Web2 and Web3 identity data.
KaratDAO’s ultimate goal is to eliminate the need for centralized data collection and storage, minimizing privacy and security risks for users while providing foundational data infrastructure that enables individuals to control, share, and monetize their personal data.
KaratDAO's Cold Start Strategy
To bootstrap the protocol and incentivize ecosystem participation, KaratDAO launched an initiative called "Space Odyssey," introducing a Verify-to-Earn model backed by dual NFTs.
This model divides NFTs into two types: Validators (Bunny Captain NFT) and Claimers (SBT Bunny NFT). The minting of Validator Bunny Captain NFTs and Claimer SBT Bunny NFTs opened on May 4. During this phase, 30 Genesis Validator NFTs and 300 Original Validator NFTs (Phase 1) were made available at prices of 1 ETH and 0.2 ETH respectively. The Claimer Pass NFT has no supply cap and can be minted for free.
Before explaining how they function, let’s first understand how the Verify-to-Earn system works.
The system allows users to create a Karat ID by submitting their Web2 (e.g., Twitter, email) and Web3 (e.g., wallet address) data, upon which they receive a Claimer SBT Bunny NFT. Karat ID is a Web3 identity system that will be eligible for future airdrops of KaratDAO’s native $KAT token, unlocking endless possibilities within the KaratDAO ecosystem.
The Claimer SBT Bunny NFT is permissionless and open to all Web3 users. The Validator Bunny Captain NFT is designed for those who wish to provide verification services to Web3 users. Claimers can choose their preferred Validators when joining KaratDAO.
KaratDAO uses a unique scoring mechanism—Karat Score—to assess the value of user data. A user’s wallet age and total token holdings determine their score; higher scores yield greater rewards. Meanwhile, Validators earn rewards based on the number of Claimers under them—each Claimer contributes 5% of their score to their chosen Validator. The more Claimers a Validator attracts, the higher their collective score and corresponding rewards. Validators also earn from every data request submitted by their associated Claimers.
Another compelling reason for users to participate in KaratDAO is the anticipated ZKsync airdrop. Recently, KaratDAO has initiated a Validator whitelist campaign. Interested users can apply via the following link: https://karatdao.com/forms/1UiBPoxtH?source=ssscccao, with participants having the chance to receive $KAT airdrops.
KaratDAO's Product Suite
Currently, KaratDAO has launched three products built on its core protocol:
1. Karat Form
An optimized version of traditional Web2 forms, Karat Form is a free tool enabling project teams to easily collect wallet addresses and social media accounts for NFT whitelists, giveaways, and AMAs. With Karat Form, organizers can view detailed insights about each submitted address—including ETH balance, holder qualifications, blue-chip NFT ownership, and social profiles—helping identify potential community members efficiently.
Additionally, its ML-powered system provides labeled user data, allowing projects to run targeted marketing campaigns to attract specific user segments.
2. Wallet Dashboard
The KaratDAO Wallet Dashboard allows batch analysis of custom wallets, NFT collections, POAPs, and Galxe data, enabling data-driven decisions for future engagement strategies.
3. Airdrop Launchpad
Powered by an Automated Matching Engine (AME), KaratDAO’s Airdrop Launchpad identifies users across blockchains who exhibit overlapping behavioral patterns, pinpointing high-potential candidates for new protocols. Projects can rapidly build communities by distributing tokens and NFTs to these targeted audiences.
Future Development: Building a New Industry Standard
According to its roadmap, KaratDAO plans to launch additional features such as W3Auth, a data marketplace, and account abstraction integration.
W3Auth is a new Web3 authentication and authorization standard. With W3Auth, users can upload their data to KaratDAO, and smart contracts regulate access based on user-defined permissions. Data is encrypted via MPC technology to protect personal privacy. Users can also earn rewards by granting authorized access to their data.
The data marketplace functions as its name suggests. Leveraging the data control and access mechanisms established by earlier products, it enables multi-party data trading and introduces a $KAT reward system for participants. This gives users a direct path to monetize their personal data.
No details have yet been disclosed regarding the account abstraction integration feature.
As a data infrastructure powered by encryption technology, KaratDAO leverages MPC and ZK to ensure user data privacy and security. Users can maintain control over their Web2 and Web3 data while earning $KAT token rewards through participation in the KaratDAO ecosystem.
The launch of products like Karat Form, Wallet Dashboard, and Airdrop Launchpad represent early demonstrations of the protocol’s capabilities. What lies ahead—W3Auth, the data marketplace, and account abstraction integration—is even more promising. These upcoming features could empower users to fully break free from the influence of large centralized internet companies and truly own, control, and manage their personal data.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
深潮TechFlow
