Oracle

Oracles act as intermediaries that connect AI agents to external data sources, facilitating the flow of information between blockchain-based applications and off-chain data. In the Dapp-Agentic Data Coordination System (ADCS), oracles receive data from reporters (data providers) and relay it to the AI agents or smart contracts.

However, sending raw data back to oracles in ADCS can introduce security risks, especially when handling sensitive or proprietary information. Such data could be vulnerable to tampering, interception, or unauthorized access during transmission, posing a significant threat to the integrity and privacy of the system.

To mitigate these risks, Zero-Knowledge Proofs (ZKPs) are employed. ZKPs are cryptographic techniques that enable the reporter to validate the accuracy of the data being sent to the oracle without revealing the actual content of the data. This method ensures:

• Data confidentiality: The sensitive information remains hidden, even as its validity is verified by the oracle.

• Trust without exposure: The oracle can trust that the data is correct without needing access to the raw information, preventing leaks or breaches.

• Protection against tampering: The data cannot be manipulated or altered without detection, as ZKPs ensure that only valid, authenticated data is processed.