According to a recent report, the blockchain industry has more than 81 million active users, demonstrating continuous innovation in the field despite being only a decade old.
The importance of prophecy in the growth of the blockchain industry cannot be overstated. Oracle is a protocol that allows smart contracts in the blockchain industry to interact with external data, according to Cryptopedia.
A smart contract is a computer program that runs on the blockchain and automates a series of transactions when certain conditions are met. In this way, smart contracts contribute to the complete decentralization of the blockchain industry by enabling transactions automatically and without the intervention of third parties.
On the other hand, oracle struggles with centralized control as multiple protocols are controlled by a single entity and serve as a single data source for smart contracts. In order to provide smart contracts with increased security and transparency, the oracle network must also be decentralized if blockchain technology is to achieve the main goal of decentralization.
Blockchain evolution and impact
LUNA was a bloodbath in the cryptocurrency market on May 12, 2022 when its price fell to almost zero, which caused great concern all over the world. As a result, TerraUSD (UST), the third largest stablecoin in the world, is experiencing a death spiral.
Due to the high volume of sales of $LUNA and $UST, there was a lot of inconsistency between different platforms due to inconsistency of oracle, which led to the exploitation of the Venus Protocol by bad actors, which resulted in a loss of $11 million as hackers took advantage of the inconsistent prices of Venus.
Without a single point of failure, decentralized oracles help reduce this risk and have proven to be more accurate on data during periods of high volatility. Oracle’s decentralized logging uses distributed ledger technology to increase security and reduce hacking caused by Oracle’s centralized logs.
Decentralized Oracle has effectively secured smart contracts and enabled seamless off-chain data verification. One of the main problems with bringing prophecy to the blockchain is that it goes against their ethos of hopelessness. One solution is to ensure that blockchain-related oracles are decentralized and not controlled by a single entity.
Web3 decentralized oracle
QED is a decentralized oracle protocol with a stable economic model that connects blockchain, smart contract platforms and off-chain data sources. QED is a decentralized oracle that aims to achieve desperation by dividing data points across multiple entities and modeling blockchain networks.
QED’s base software, DelphiOracle, is the most widely used protocol on WAX.io, the world’s most trusted blockchain ecosystem for NFT, dApps, and video games.
DelphiOracle has served as a multi-faceted source of truth and real-time pricing for asset pairs on the blockchain network for over four years. DelphiOracle is industry proven and QED is built on it. The goal of QED is to solve problems inherent in the Oracle model and existing blockchain systems.
The Band Protocol provides a “community curated” data source, enabling dApp operators to engage in data feed management and curation, troubleshoot oracle problems, and implement smart contracts with reliable data feeds.
Band Protocol is a cross-chain oracle network that allows decentralized applications (dApps) to integrate price and event feeds, effectively bridging the virtual and real worlds. Since its founding in 2018, Band has garnered a lot of attention and is widely regarded as one of the world’s leading decentralized oracles.
As the world of decentralized applications (dApps) evolves and grows, so does the need for innovation in decentralized oracle technology.
To drive mass adoption, high scalability requires a decentralized oracle that can be just as responsive without sacrificing quality or accuracy. Decentralized Oracles such as Band and QED are significant steps toward fully decentralizing the technology, and this is just the beginning.