FAQs

General

What is the Data Problem?

Data possesses two equally important traits: the ability to contain information as well as value - contractually, economically, socially, and legally. While machines can operate on information through logic and maths, they cannot preserve or describe value. This is the Data Problem.

The Data Problem means that:

● No technical solution for data ownership exists and so the only way to sell data is as a commodity, as Netflix demonstrates.
● This in turn transforms internet users into the commodity, rather than the customer, in an economical model akin to serfdom.
● No value can be caught on most open source projects, such as Wikipedia.
● The threat of data loss is solved through cloud backup and storage but the threat of data theft and abuse has no autonomous solution.
● Privacy of enterprise and individual data is lost the moment data is shared, forcing a trade-off between technical efficiency and loss of value.

How does Zenotta solve the Data Problem?

Zenotta converts any form of data or digital content into Smart Data, a rival and excludable digital asset that is truly unique and can be owned. This ownership gives the Smart Data value, and gives the owner the rights and control over their Smart Data asset; something that was previously unattainable.

Who is the Zenotta technology intended for?

Everyone. Imagine a society where you can pay your rent with a tokenized version of a song that you wrote, or buy groceries with a piece of digital art that you own. Imagine trillions of connected, programmable files, with rights and privacy assigned at the file level. For content creators, for businesses dealing in digital products, or indeed any individual, company, institution, or government, the potential of such a system is vast, and as yet untapped.

Funding/Journey

How is Zenotta funded?

Zenotta is currently privately funded. Registration for the ICO phase (via our website) is open.

Who are the Zenotta founding members?

The founding members are Roelou Barry and Andrew Kessler.

Where is Zenotta registered?

Zenotta AG is registered in Zug, Switzerland.

In what jurisdictions can Zenotta technology be used?

Zenotta technology can be used worldwide, in all jurisdictions.

What regulatory approval does Zenotta have?

The Zeno Token qualifies as a payment token and the sale of Zeno tokens is only subject to anti-money laundering laws. Our business can operate without any specific regulatory licence or requirements. The no-action letter request is currently pending with FINMA, the Swiss Financial Market Supervisory Authority.

Who are Zenotta’s partners?

Zenotta AG’s partners include Wachsman, Prysm Group, Sygnum Bank and Cooley LLP.

What stage is the platform currently at? Is it live?

The Zenotta platform is currently live but in closed bootstrap phase. The platform will be publicly accessible in June 2021.

When will Zenotta onboard users onto the platform?

Zenotta will onboard users onto the platform from June 2021.

The Technology

How does the Zenotta Digital System (ZDS) work?

The Zenotta Digital System imparts economic, social, and legal value to data or digital content, allowing it to form the bedrock of a new data democracy. Through a unique Smart Data conversion process, built on a next generation blockchain network and underpinned by a community-focused, compliant governance philosophy, the ZDS gives you full ownership of your data and turns digital content into a digital asset, in every sense of the word.

What is the Zenotta Data Protocol (ZDP)?

The Zenotta Data Protocol solves the problem of scarcity and fungibility for data and digital content by imparting true uniqueness. The protocol converts any kind of data into a new, decentralized file format that leverages encryption and blockchain technology to give that data its own, unique DNA, making it a tradeable and programmable asset.

What blockchain does Zenotta use?

The Zenotta Network Protocol (ZNP) is our blockchain network and functions as the backbone for the Smart Data economy. It employs an in-house next generation Proof-of-Work consensus algorithm that creates a greater degree of balance in the mining network in order to make the opportunity for mining fairer. An algorithmic process inspired by the laws of thermodynamics reduces mining inequality and prevents re-centralization - giving everyone the chance to mine profitably and increasing the security and efficiency of the network.

What does the Zeno token do?

The Genesis Block configuration has been finalized and released and the blockchain-based Zeno Token is being issued, mined and distributed. The Zeno Token serves as the native token to the Zenotta Network Protocol and of the overall Zenotta Digital System. The Zeno tokens are used as a means of payment, in order to facilitate the execution of Smart Data Contracts, and as fuel for payments made on the infrastructure. The Zenotta Wallet facilitates the storage of Zeno tokens and encryption keys.

What is the dual double entry ledger and why is it important?

The dual double entry ledger is the first bi-directional blockchain ledger that allows for the movement of and the record of both the token and the Smart Data asset. This is an extremely important innovation, as it means that the Smart Data, as well as the token, can be secured by the blockchain, enabling a two-way trade rather than a one-way payment. Having the Smart Data and its history secured by the blockchain enables a peer-to-peer electronic trade system that forms the backbone of a decentralized digital economy.

How is Zenotta governed?

The Zenotta Governance Philosophy adheres to the principle of governance without control. It is centered around a community-focused, fair partnership built on a Socratic interpretation of Athenian democracy that ensures compliance with private legal acts and mandatory law. The members of each community (miners, token holders, etc.) that have a ‘stake’ in the Zenotta Digital System will be able to vote on changes and updates after the initial bootstrapping phase.

Product

What is “Smart Data”?

Smart Data is a decentralized file format, with programmable metadata that is secured through encryption, encoding, and an immutable blockchain ledger. The decentralized file consists of: (i) a Data Rights Signature (DRS) which is stored on the blockchain; (ii) a Cold-Stored File (CSF) that is kept on a machine or a cloud-based account that you own; (iii) a set of encryption keys, held in the user’s wallet. The use of these elements operating in concert with each other allows for cold storage by state rather than by location. Data that is converted into Smart Data can have self-sovereignty, rights, and value. Through uniqueness and programmability, data can take its rightful place in an economic, social, and legal system for digital content. Smart This new concept and asset class breathes life into a true data democracy and a true data economy. For the first time, your data and your digital assets can be truly owned and under your control.

Is this a type of NFT? How is Smart Data different?

Smart Data shares a number of properties with NFTs - namely non-fungibility, verifiability, and indestructibility. However, Smart Data is very different because it also retains the properties of programmability (Smart Data can be instructed to behave differently under different conditions, through Smart Data contracts) and excludability (consumers who have not paid for the good are prevented from having access to it). Smart Data also has the further vital property of compliance with national and international law, such as GDPR, protection of minors, and other regulatory compliance. Rather than having merely a token with the property of non-fungibility assigned to a particular file, it is the file itself that contains this non-fungible, scarce property, through the decentralized file format and the interplay of encryption, encoding, and a blockchain-based signature. These properties allow for full control of the file as well as identity-based ownership. A good analogy would be that of taking ownership of a new car: NFTs essentially give you the 'pink-slip' of ownership, while Smart Data gives you both the pink-slip as well as the keys to the car. Imagine being able to use the same collectible trading card that you purchased from an online marketplace in an online Smart Data enabled trading card game, or an in-game item in multiple games (a ‘cross-player item’) -- the exact same data, transferred across platforms while retaining its ownership and programmable properties.

Why would people choose to commercialize their data? Can they make money from it?

The digital world has raced ahead without pausing for traditional markets, trade, commercialization, privacy, and rights to catch up. A digital file has no value in any economic sense because it can be endlessly duplicated for near-zero cost. Enabling uniqueness in data creates a means to monetize any digital file that you own, and a means to assign rights and programmability to that file. This opens up countless avenues for content creators of any kind, or indeed any individual, to extract value from their data. It will give birth to a true digital economy, which every single individual can be a part of.

Would this commercialization be compliant with data protection laws such as GDPR?

Yes. Due to its transaction-based approach, the Zenotta Digital System is built within a full legal framework for digital systems that respects national and international laws and allows for full compliance with laws and regulation.