GD1 Investment Notes - Opacity (Web3 Fund 1)

16.10.24
Crypto/Web3
Investor Notes

Recently, we participated in the oversubscribed seed round for Opacity Network. Opacity is launching the first-ever Verified Data Network (VDN), allowing users to take control of their data stored across the internet.

The Problem

A major challenge in today’s web infrastructure is the lack of verifiability for data and interactions. The current architecture lacks strong mechanisms to confirm the authenticity and integrity of data exchanged between users and websites, leading to several issues:

  • Data Silos: Information is locked within individual platforms, with no secure way to bridge or verify data across different services.
  • Limited Trust: Users must trust that websites provide accurate information and handle data responsibly, without clear assurances.
  • Privacy Risks: Sharing sensitive data often requires granting full access to third parties, increasing the risk of misuse.

Additionally, bringing web2 data into web3 is complex, as it requires a balance between privacy, security, and accuracy. Opacity addresses this challenge with its innovative zkTLS protocol.

The Solution

Opacity’s VDN allows users to privately verify and share data exchanged over https, enabling them to prove things like their follower count, purchase history, or income—all while maintaining privacy.

With the VDN, users can verify their data, control how it's used, and even monetise it without compromising privacy. This shift empowers users, opens up new business models, and generates economic value. Here’s how it works:

  • zkTLS ensures data authenticity without revealing sensitive information.
  • MPC architecture provides speed and reliability.
  • EigenLayer’s economic security protects against malicious or bad-faith actors.

Who Can Use This?

Opacity’s solution is already gaining traction across multiple sectors. DePIN projects like Nosh and Teleport are using the VDN to verify driver information and establish trust when onboarding new users, while Daisy leverages it to verify TikTok activity, fueling viral growth for content. Additionally, upcoming partnerships include companies like Heale, which is building a unified logistics API, among others.

Opacity’s developer platform is now live, offering tools for developers to integrate the VDN into their applications. Teams can sign up at https://opacity.network to incorporate user data from popular social networks, delivery platforms, transportation services, and more.

The Visionaries

Opacity’s co-founders bring deep expertise from both web2 and web3 and have assembled an exceptional team to develop the platform. Hersh Patel, has been passionate about zkTLS for years, and founded Opacity after a breakthrough in sybil-resistant architecture while working on Farcaster identity contracts. Aaron Marz, a seasoned developer with over 15 years of experience in web2 and web3, previously worked at Kraken and led the front-end development team at DIMO.

Why We’re Excited

Opacity’s VDN is a game-changing protocol that enables developers to bring verifiable data from any web2 source on-chain, removing barriers to launching new platforms and onboarding users. Historically, disrupting entrenched web2 platforms was challenging, but with Opacity, founders and developers now have the tools to challenge the status quo.

If you're interested in learning more, following their journey, or becoming part of their team, be sure to follow Opacity online or reach out to me directly for an introduction.

We are actively looking to support more web3 projects. If you’re building something in the space, please do get in touch. Our DMs are open! :)

Written bY
Nawaz Ahmed

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