zkAdPack

In this project, we implemented a solution for the business problem in influencer marketing. Our solution is the SocialFi marketplace, which allows for transparent ad collaborations with influencers, with the additional involvement and expertise of agencies.

How did we identify the problem?

We spent over a year working on launching the Web3 influencer protocol and gained deep insights into the problems of influencer marketing. By launching on-chain, we aimed to address issues related to transparency of statistics and history, as well as enable escrow borderless payments through smart contracts. However, we realized that we had overlooked the expertise and experience of agencies in the market.

The business problem is as follows:

• Web3 advertisers lack the expertise to directly launch ads, even with access to complete influencer data.
• Agencies can estimate ad results and create effective influencer packages, but they cannot disclose the final prices of the influencers in the package.

Why is this the case? Agencies need to guarantee performance results based on their expertise. They create the best packages to achieve business goals and earn the remaining revenue.

How can we solve the problem?

1. Allow agencies to create influencer packages based on their own expertise.
2. Agencies estimate metrics, results, and guarantees.
3. Manage ad campaigns transparently with private payouts between participants within the package.

The main idea we implemented is the application of Elgamal additive homomorphic encryption to hide influencers' balances and their changes. We store all influencers' balances encrypted, and all operations, such as transfer, are performed on ciphertexts. When making a withdrawal, an influencer only needs to disclose the amount of tokens they wish to take from the protocol. They do not need to disclose their intermediate prices and actions.We utilized Mina's zk programs to create verifiable encryption and decryption without revealing prices and private keys of participants. Additionally, we employed the protokit framework to streamline the process of building apps on Mina. The use of zk apps enabled us to construct a zk system PoC that controls an input cashflow while concealing the prices of specific influencers.

How does it work?

1. Advertisers book fix-priced ad packages based on:
   • Influencer data
   • Agency expertise
   • Reputation
2. Complete payments using smart contracts for the full package amount.
3. Agencies manage the ad process with influencers and achieve transparent results.
4. Payouts for each influencer are taken from the total pool, but in a zk-encrypted way.