Zap Terms Defined

Artifacts

Artifacts are comprised of the "bytecode" versions of the smart contracts, ABIs, and some internal data used for deployment.

Blockchain

A distributed ‘database’ or ledger, known as the blockchain. The data is collected into groups known as ‘blocks’. Each block contains the hashed data of the previous block. The data is permanent and cannot be undone once it is recorded to the blockchain.

Blockchain Technology

Coded in accordance with game-theoretical concepts such as impartial mathematics and supports a decentralized peer-to-peer network based on a distributed ledger.

Bonding Curve

This image above displays a basic x² Bonding Curve. The curve represents the immutable price that is created by the provider issuing the service or product before launching. It is along this curve that the secondary tokens price is reflected. More specifically, the X-axis represents the ZAP pool balance and the Y-axis represents the Secondary Token’s price. So as more ZAP is pooled, based on the Bonding Curve above, the price for the Secondary Token will increase at an exponential rate. The Zap Bonding Curve Initializer allows for the customization of your pricing index using its drag-and-drop capabilities.

Bonding

Bonding is a process whereby an individual commits their ZAP token to a service-specific Bonding Curve smart contract pool in order to receive a redeemable secondary token or subtoken. Prior to bonding ZAP tokens, individuals will be able to see how many secondary tokens or sub tokens they will receive as a result of bonding. Individuals are able to purchase as many tokens as they are able to afford based on the predetermined pricing index.

Bounties

Bounties are rewards in tokens that a cryptocurrency/blockchain project gives away after a user successfully completes a certain task.

Burning

Token burning is a strategy followed by cryptocurrency projects to influence the price of a token, or coin, in the market. This is done by permanently removing some tokens from circulation.

Decentralized Applications (Dapps)

Decentralized applications, also known as Dapps, are open-source programs that function on top of a distributed computing system. The service is provided without a centralized server in a peer-to-peer environment managed by impartial algorithms and code.

Decentralized Exchange (DEX)

An autonomous Dapp that allows cryptocurrency buyers or sellers to trade without having to give up control over their funds to any intermediary or custodian.

Decentralized Finance (DeFi)

Decentralized finance is a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments, and instead utilizes smart contracts on blockchains, the most common being Ethereum.

Endpoints

Endpoints are the platforms where human beings interact with the blockchain. Several times these spaces comprise mining systems and other PCs, which end users utilize to access services of blockchain.

ERC20

ERC20 is an official protocol for proposing improvements to the Ethereum (ETH) network. ERC stands for Ethereum Request for Comment, and 20 is the proposal identifier. This is a common standard for creating tokens on the Ethereum blockchain.

Escrow

Escrow is a legal arrangement in which a third party temporarily holds large sums money or property until a particular condition has been met (e.g., the fulfillment of a purchase agreement).

Ethereum

Ethereum is an open-source, blockchain-based, decentralized software platform used for its own cryptocurrency, ether. It enables smart contracts and decentralized applications (Dapps) to be built and run without any downtime, fraud, control, or interference from a third party.

Internet of Things (IoT)

Internet of Things (IoT) describes the network of physical objects—“things”—that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet.

Minting

Minting is defined as the computer process of validating information, creating a new block and recording that information into the blockchain.

Oracles

Smart contracts are designed to execute on a certain set of terms and conditions in a trustless and transparent manner. However, smart contracts face a dilemma in their inability to communicate with off-chain data. Smart contracts require oracles to feed them this off-chain data in order to trigger economic activity autonomously on the blockchain.

Price Index

A price index is a measure of how prices change over a period of time, or in other words, it is a way to measure inflation.

Providers

The individuals and companies that list tokenized products and services on the Zap Platform are referred to as Providers. To use the Zap Protocol smart contract templates, Providers will select an ethereum account to act as their provider identifier, an IPFS key pair, and define their immutable Bonding Curve pricing index.

Secondary Tokens

Secondary Tokens are provider-specific tokens that are issued by specific Bonding Curve smart contract templates. Unlike DOTS, the Secondary Tokens issued are based on different ethereum token standards and can be moved or traded outside the Zap Smart Contracts that issue them.

Smart Contract

A software program used to execute an agreement between at least two parties. At its core, smart contracts are a series of instructions that issue commands, define terms, set forth conditions/contingencies, and establish events that need to occur in order to trigger subsequent actions.

Staking

Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain.

Subscriber (User / Consumer)

A subscriber is a user / consumer of any of the Zap Platform's tokenized products or services. To become a Subscriber, a user must bond ZAP to a Provider’s curve. The subscriber will then be given a secondary token or subtoken which can be used to redeem the services associated with the Bonding Curve’s Endpoint. Subscribers can also unbond their secondary tokens or subtokens from the Bonding Curve to receive back ZAP based on the price displayed by the Bonding Curve. Endpoint An Endpoint represents the tokenized product or service you will receive when redeeming your secondary token or subtoken. Providers can deploy any Endpoint to the Zap Platform to provide data and other tokenized products and services.

Subtoken (DOTS)

‘DOTS’ are sub-tokens used within specific smart contract templates on the Zap Oracles Ecosystem. These templates are typically used for Oracles creation or subscription services. The ZAP Token is used to purchase a smart contract subtoken referred to as “DOTS” by bonding to the Provider’s Endpoint. DOTS can have an array of functions depending on the Endpoint service. Some of the functionalities of DOTs are

• Query an Oracle's Endpoint for a data feed, 1 DOT = 1 QUERY

• Start a subscription service with an Endpoint 1 DOT = 1 BLOCK TIME

• Speculate on the future price of a service provider’s DOT by holding and selling the DOT back for ZAP, rather than redeeming the DOT.

• DOTS can not be traded or moved outside the Zap Smart Contract that issues them.

• DOTS are indivisible.

Token Providers

Create Bonding Curves which mint ERC20 tokens that can be used outside the Zap platform

Unbonding

Unbonding is when a user redeems their secondary token or subtoken or when a user sells those tokens back to the Bonding Curve smart contract for ZAP. Both situations would result in lowering the overall pool of ZAP and thus lowers the price of the Secondary Token or subtoken for the next individual who Bonds.

Web 3.0

Originally called the Semantic Web by World Wide Web inventor Tim Berners-Lee, Web 3.0 is an upcoming third generation of the internet where data will be interconnected in a decentralized way, which would be a huge leap forward to our current generation of the internet (Web 2.0), where data is mostly stored in centralized repositories.