NEW YORK--(BUSINESS WIRE)--Today marks a monumental milestone for decentralized finance: Upshot and Modulus Labs have teamed up to create the first ever zero-knowledge price oracle.
Upshot CEO Nick Emmons explains, "As more of the financial system becomes backed by ‘black box’ AI models, investors expose themselves to risks from unverified AI models."
That's why they’ve collaborated with Modulus, the leader in specialized zkML infrastructure tailored for blockchains. According to Modulus Labs CEO Daniel Shorr, "By combining the magic of ZK proofs and the superpowers of AI, we're building the biggest UX upgrade blockchain has seen."
The zkPredictor will verify Upshot's asset valuations inside tamper-proof ZK proofs, without exposing Upshot’s proprietary model IP.
These Oracles unlock new markets by providing trusted prices on-chain for the first time.
Why ZK Proofs Matter
The ZK proof serves an important function in Upshot's Machine Intelligence Network by enabling efficient and low-cost verification of the machine learning models that generate our asset pricing data.
Specifically, the nodes in the network share new price information to each other, then report these prices on-chain on a regular basis. To avoid the high cost of running an explicit proof on-chain every time, the system uses an optimistic verification approach––only running ZK proofs for transaction-relevant, hotly watched, and disputed prices.
This enables a system where the ZK proof acts as a deterrent against misbehavior by nodes. If a node is challenged and the ZK proof shows they reported incorrect data, they face penalties to their stake and reputation.
The zkPredictor engenders greater trust and accountability across the network. The ZK proof is thus a critical component that enables Upshot to bring verified, manipulation-resistant machine learning pricing models on-chain in a practical and cost-effective manner.
About Upshot:
Upshot is an AI x DeFi platform creating efficient financial markets for anything. Their expertise in machine learning and peer predictions ensures market efficiency without compromising trust. They’re backed by some of the biggest funds in the industry. Upshot is based in New York City, though their team hails from around the world.
About Modulus Labs:
Modulus is the accountable magic company. They use bleeding-edge cryptography to verify that AI results weren’t secretly manipulated. This means that smart contracts can now access AI features without abandoning the trustless creed. The team is based in Stanford, California.
Contacts
Greg Larson
Upshot
greg@upshot.xyz