Swash integrating with Chainlink to make sponsored withdrawals and proportional revenue sharing a reality
We are excited to announce that Swash will be integrating with Chainlink, the market-leading decentralised oracle network that connects smart contracts to real-world data existing outside their native blockchains (off-chain). Through this integration, we will use a DATA/ETH Chainlink Price Feed oracle network to automatically calculate the balance needed to cover transaction fees on behalf of users.
Further down the line, we also intend to utilise Chainlink to implement a fairer revenue sharing mechanism where Swash members are rewarded according to the quality and quantity of their contributions. This will allow us to upgrade the distribution model from the current one where everyone receives the same value, to a proportional model where rewards reflect the value of a users’ contributions to the ecosystem.
We selected Chainlink because it’s a provably secure and reliable system, already securing billions of dollars in on-chain value through its oracle networks. It uses high-quality data from premium APIs, incorporates decentralised infrastructure to protect against single points of failure, and is highly modular to allow for customised connections to a variety of off-chain resources.
The Swash model focuses on returning data profits back to the people who generate it. That’s why it’s important for us to optimise the way users earn from Swash, making the process of withdrawing profits as smooth as possible.
In its current form, Swash is a browser plugin that captures web surfing data. In our roadmap, we share the other ways in which we intend to expand, including venturing into the mobile data market and adding an ads panel feature. Until then, to start using Swash and to get paid for the value of data, users simply install Swash to their preferred browser, surf as normal, and start earning directly into their wallet.
When users go to withdraw their earnings from Swash, they need to have a specific amount of ETH in their wallet to cover the transaction fee. Sponsored withdrawals mean that, when a user has a certain balance in their account, Swash will cover the cost of the transaction for them. This amount fluctuates according to network demand.
Also, the earnings users receive - 70% of profits made from data sales - are currently distributed unfairly. One of our priorities in the Swash roadmap is to make sure that payments are fair, calculated according to the value of the contribution each user puts in. This is complicated, as it means we need a way to measure the quality and quantity of individual data points from each Swash user.
Integrating with Chainlink makes both of these upgrades a reality. The Chainlink Price Feed will allow us to automatically track the fair market ETH/DATA conversion rate to determine whether individual Swash users have enough balance for us to cover the cost of transactions on their behalf in a secure, reliable, and transparent way.
The ability to distribute data profits fairly allows us to get closer to our vision of creating a fairer digital economy. The current revenue sharing mechanism rewards users the same amount, regardless of their contribution to the Swash data set. Being able to upgrade the way Swash measures and distributes profits allows us to realise goals on our roadmap without friction by making use of Chainlink’s easy-to-use, highly flexible oracle solution.
The first level of integration with Chainlink will involve using the Chainlink Price Feed to monitor the ETH/DATAcoin conversion rate. Chainlink uses a network of secure oracle nodes to source price data from numerous off-chain data aggregators, meaning we can get a volume-adjusted aggregated price point in a fully decentralised manner. This makes it possible to automatically calculate the amount needed to cover the transaction cost in an accurate and secure way, further streamlining the experience of Swash for users.
Following this, we are also preparing to use Chainlink to validate the quality and quantity of user data. This will allow us to distribute Swash profits more fairly by proportionately rewarding users for their contributions as opposed to a one-size-fits-all approach.
So, what would this look like?
Currently, the data Swash users generate gets captured, pooled, and added to a decentralised marketplace where data buyers, such as market intelligence and analytics companies, agency networks, brands, hedge funds, and data scientists, can pay to gain access to it. The payment is then distributed to users via a smart contract and makes use of a one-to-many crypto micropayment tool called Monoplasma.
Monoplasma, designed by Streamr, allows us to distribute revenue profits between everyone in the Swash dataset automatically. Distributing these profits equally is not fair as some users will contribute more to the value of the data set, which can be measured through the quality and quantity of data points provided.
Validating these data points requires predefined metrics, such as checking for duplicates and the ability to validate the signature of data points. Integrating with Chainlink will allow us to create an ecosystem in which anyone can be a validator of Swash user data. Each validator validates the Swash contributors’ data points and calculates a reputation score for each contributor separately. They then provide these scores as an API that is made available on the blockchain via the Chainlink Network.
Validators can either run their own Chainlink oracle node to broadcast their data directly on-chain, or they can run an API which existing Chainlink oracle nodes can connect to and bridge on-chain. Validators’ responses can then be aggregated to create a single reputation score, while their responses can be tracked to see their historical performance as a reliable validator.
Validators will be able to calculate the reputation of all Swash users according to predefined metrics. The reputation, according to quality and quantity of data points, could be a value between 0 and 1. Then a list of reputations can be returned as the response of the validator’s API call. This value could then be used as a feed for revenue sharing mechanisms in the Streamr Monoplasma contract.
By using a Chainlink Price Feed to calculate conversions between the ETH/DATA price, we will be able to measure the price in a trusted, reliable, and investigable way, reducing risk for everyone involved. Also, the support of Chainlink to create a system in which anyone can join as a validator will provide Swash with a reliable and trusted reputation feed from which to measure value.
Integrating with Chainlink will provide Swash with an accurate way to monitor the ETH/DATA price to automate our sponsored withdrawal feature. This allows us to expand our value proposition to Swash users while reducing time spent on calculating currency conversions.
Chainlink also provides us with an exciting and tangible way to create a fairer profit distribution mechanism, making it possible to bring more value to our users as we take steps towards the Swash vision. Without Chainlink’s trusted, decentralised solution, finding a way to securely and transparently validate Swash data on which to assign reputation value would be a much harder task.
Reza Naeeni, CEO of Swash
Swash makes it possible to earn as you surf the web. Simply install the plugin and use the web as normal to start earning rewards straight into your wallet.
Swash aims to redesign the data economy to work to the benefit of everyone, ultimately creating a better internet. This is only possible by rewarding everyday internet users for the value their data generates as they use the web and by recognising every individual as an integral part of the data economy.
With Swash, everyone can profit from the value of their data. By redefining how data is collected and valued, Swash aims to accelerate change and set new standards for our data economy.
Swash is available on all major browsers. Install Swash here.
Chainlink is the most widely used and secure way to power universal smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralised community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralised finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organisations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.