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December 15, 2021 12:57 UTC
| Update:
December 15, 2021 13:05 UTC
How a company solves DeFi’s biggest dilemma
Blockchain oracle is a third-party service that connects smart contracts on the blockchain with “real world” data, expands its use cases and functions, and provides users with better and more relevant services. Since blockchains are closed systems, they need to rely on third-party sources to provide real-world information to the applications built on them.
Without external off-chain data, the use of smart contracts in practice is limited. The types of off-chain external data can vary greatly, from representing the current prices of different cryptocurrencies (such as BTC and ETH) to weather conditions, and even the results of elections or sports events. Off-chain data is fed to blockchain smart contracts to help them execute transactions based on the results of real-world events specified in the smart contract. For example, the smart contract of a betting application pays to addresses that correctly predict elections or sports events.
Compared with traditional applications and services, DeFi and blockchain applications should be more private, safer, and better managed. However, if they need to rely on third-party service providers to obtain the data they need, they may lose the security and accuracy that they were originally designed to provide.
Security is one of the compromises that the oracle must make in order to execute transactions based on external information. In addition to security, oracles also face scalability and decentralization issues, which are collectively referred to as the trilemma of oracles. Existing oracles face this survival challenge, which limits their widespread adoption in DeFi and other blockchain applications.
In this article, we will review this oracle trilemma in more depth, including some common uses of oracles, and how SupraOracles uses cutting-edge technology to solve this problem and revolutionize the blockchain and DeFi industries.
What are the most common uses of blockchain oracles?
Almost every DeFi application requires Oracle, including:
- DeFi and cryptocurrency exchange
- Crypto-based games
- NFT market
- Encrypted Mortgage/Proceeds Agricultural Services
- Blockchain and crypto insurance
- Tokenized service
- Enterprise applications that use private, permissioned blockchains, including:
- Supply chain monitoring
- Medical records
- Traditional insurance
- ESG and environmental reports
Smart contracts can use real-world data relayed by oracles to support and facilitate the exchange of useful information about these applications, thereby creating harmony between the internal (blockchain) and external environments to maximize use cases.
The Oracle problem is the decisive problem in DeFi
The aforementioned oracle problem is still a huge problem in the DeFi field, and it has not yet been resolved. In fact, so far this year, Oracle manipulation and hacking have cost cryptocurrency exchanges and other DeFi protocols (including their investors and users) more than $10.5 billion.
Solving it can revolutionize the industry by allowing DeFi applications and services to become truly “trustless.” Under this new allocation, users will no longer need to trust large centralized organizations. Instead, they can trust the code with the developers and maintainers of the decentralized entity governance system.
Although current oracles try to solve this problem, none of them can come close. A study of more than 190 DeFi founders showed that they are very dissatisfied with the current oracle options.Specifically, they determined the data provided by the oracle as Too inaccurate, too slow, too insecure, With a limited guarantee that the data will not be manipulated by external bad actors or even the oracle itself.
SupraOracles solution: safety, speed and accuracy
As a powerful cross-chain oracle, SupraOracles helps companies connect real-world data to public and private chains, enabling interoperable smart contracts to automate, simplify, and protect the future of finance.
Since they are not data sources themselves, oracles need to be more advanced in the way they collect, analyze, and verify data from multiple fields and deliver them to smart contracts.
The data provided by SupraOracles solution is Faster, more accurate, fully decentralized and lower cost than the competition.
Innovation is the key to the success of any oracle because they cover a wide range of fields and ensure that effective information flows seamlessly between them and their source.
SupraOracles is far ahead in the innovation of its cross-chain oracle solutions. It can be used as an inbound oracle that provides off-chain data to smart contracts, or as an outbound oracle that transmits information from the contract to the real world.
SupraOracles is the key to innovation
Parallel processing
Different information processing methods on various blockchains determine the true scalability of these applications. SupraOracles chose to use parallel rather than sequential processing because the latter limits transaction speed and scalability.
Through parallel processing, irrelevant transactions can be confirmed at the same time. This ensures the future of the financial market, as transactions from one party can be processed simultaneously with another party on a different and unrelated chain.
SupraOracles’ unique data processing method is almost Cancel petrol fee, Making transactions not only faster, but also much cheaper than any other Oracle service available. Supra’s speed also allows it to reach finality within 3-5 seconds, which is significantly faster than Chainlink’s industry standard, which usually takes 120 seconds to reach full confirmation.
Threshold cryptography
The encryption provided by SupraOracles is thousands of times more secure than its competitors. Its multi-party threshold cryptographic paradigm can realize the secure distribution of trust in the operations of cryptographic activities, including key generation, signature, encryption, and decryption operations.
The main source of innovation here is to reach a consensus through nodes that perform off-chain calculations and store the final results on the chain or directly in Supra’s local smart contract at a low cost. By ensuring the security of the oracle layer, the platform provides multiple solutions to the following problems: Oracle manipulation, slippage and the fair market value of digital assets.
Random sampling
As mentioned earlier, oracles covers a wide range of applications. The transmitted data may include payment, temperature from sensors, football match score, price information, etc.
This variety of data means that random sampling is the key to getting the best information from a large sample. SupraOracles discovered how to have a single node in a parallel, organized, and random network topology in multiple distributed key generation configurations.
By doing this, inbound and outbound information will not be tampered with, because random sampling means that the way the oracle service requests are routed can ensure that the path to consensus is both deterministic and unpredictable.
Advantages of SupraOracles solution
Crypto enthusiasts usually call for highly innovative and ambitious projects. SupraOracles promises to solve the trilemma of security, decentralization, and scalability by creating a new and innovative method to explain the concept of how oracles operate and operate.
SupraOracles’ project surpassed other projects by completely changing its system and implementing operational robustness to solve cyber spam and MEV (miner extractable value) attacks.
In this DeFi era, users need an oracle with unparalleled security features, and continuous improvement in features such as high throughput and continuous low transaction latency.
SupraOracles, as the preferred oracle to protect the future of the financial market, has taken a place in the encryption field, making innovation a beacon for building hybrid smart contracts to achieve a better DeFi future.
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