Oracle has been able to provide a large set of tokens in the ecosystem of digital currencies, but it is possible that many users are not familiar with these tokens and do not know the working process of these types of tokens. Therefore, in this article, we want to introduce digital currencies in the field of Oracle and explain how they operate in the digital currency market. To learn about digital currencies in the field of Oracle, you can read this article to the end.
Chainlink , one of the digital currencies in the field of oracle , was established in 2017 as an abstraction layer of the blockchain, enabling the connection of global smart contracts. Through a decentralized oracle network, Chainlink allows blockchains to securely interact with external data supplies, events, and payment methods, providing critical off-chain information required by complex smart contracts to create a dominant structure. provide In fact, the main goal of users of this digital currency is to guarantee decentralized participation for all node operators and users who are looking to participate in the network.
Smart contracts play an important role in blockchain system and DeFi decentralized finance. In essence, smart contracts help fulfill the original purpose of Bitcoin and other decentralized networks, which is to enable people to conduct secure peer-to-peer transactions , eliminating the need for intermediaries such as banks or governments. Due to the lack of a central intermediary, developers are faced with the challenge of finding a way to provide smart contracts with the real-world data that they ideally need to interact with in order to perform more ambitious functions. This data can include information such as currency exchange rates, weather or even sports scores.
Chainlink is a decentralized oracle cryptocurrency that provides this much-needed flow of information to smart contracts that run on different blockchains. It aims to make smart contracts an even more powerful tool that enables them to use dynamic data inputs collected from external sources.
This data, as noted, is diverse and can range from supply chain management data, temperatures sent from a smart sensor, scores from a football game, anything relevant to a given blockchain goal. Chainlink does not have a native blockchain, but instead integrates with multiple blockchains simultaneously, providing up-to-date information streams to all of them. Chainlink buys data from many data providers and then sends it directly to blockchains. It is in the interest of data providers to provide only accurate information as points will result in removal from the network.
Chainlink’s oracle network empowers blockchains like Ethereum , as well as the decentralized applications (DApps) that run on them, to access data, thereby bridging the gap between the real world and secure blockchain environments. Oracles on the network collect, query, and validate data from thousands of data sources and deliver it to Chainlink, which then feeds dynamic inputs to smart contracts. All of this facilitates a smarter and more connected blockchain ecosystem.
What sets Chainlink apart?
Chainlink, which is one of the digital currencies in the field of Oracle, is considered as a project to integrate off-chain data with smart contracts. So it has gained a lot of popularity and is currently supported by blockchain. Additionally, Huobi, Brave New Coin, and Alpha Vantage have all started selling their data to Chainlink.
Since it is a decentralized and open source network, Chainlink encourages a large number of users to work on nodes and reward them with Chainlink tokens.
A collection of nodes enables the Oracle network to transmit information such as pricing data to blockchains. Multiple nodes receive data requests and facilitate communication with real-world data providers.
Chain link, a bridge between data inside and outside the chain
Chain Link, as one of the digital currencies in the field of oracles , uses oracles to communicate between on-chain and off-chain data. Oracle is similar to a software that acts as an intermediary and transfers real data to smart contracts.
However, a centralized oracle poses the same problem as a secure decentralized smart contract with a blockchain. If Oracle has problems, how do you know your data is accurate? What good is a secure and reliable smart contract on the blockchain if the data that feeds it is in question ?
For this reason, let’s do a quick summary about smart contracts and oracles:
- Smart contracts are immutable contracts that automatically execute in an IF/THEN framework when conditions are met.
- The data that defines these conditions traditionally originates from the blockchain.
- Oracles have recently been introduced into the crypto ecosystem to bring off-chain data into on-chain smart contracts .
- However, centralized oracles reduce the benefits of smart contracts within the blockchain because they can be unreliable.
- Chainlink is an oracle cryptocurrency that has a decentralized network of nodes that provide data and information from off-blockchain sources to smart contracts on the blockchain through oracle.
Types of Chainlink smart contracts
When a smart contract needs data, the process starts on a smart contract enabled blockchain . That smart contract sends a request for information. The Chainlink protocol registers this request as an “event” and in turn creates a corresponding smart contract on the blockchain to receive this off-chain data. The Chainlink SLA creates three subcontracts: a chain credit agreement, a chainlink order matching agreement, and a chainlink aggregation agreement.
Chainlink’s trust contract checks the Oracle provider’s records to verify its authenticity and performance history, and then evaluates invalid or untrusted nodes.
How do chain nodes verify data?
On-chain nodes accept a request for data, and the blockchain core software uses the on-blockchain programming language to translate that request into an off-blockchain programming language that the real-world data source can understand. This newly translated version of the request is then routed to an external application programming interface (API) that collects data from that source. After the data is collected, it is translated into blockchain language again through the Chainlink core software and sent to the Chainlink collection contract.
This is where things get really interesting, the chain link aggregation contract can verify data from a single source, from multiple sources, and can also reconcile data from multiple sources. Therefore, if five nodes provide the same response from a weather sensor and two other nodes provide a different response, the chain link aggregation contract will recognize that those two nodes are incomplete (or dishonest) and reject their responses. In this way, the nodes of the chain link can verify the data from a single source.
A chain link aggregation contract can repeat this validation process for multiple sources, then reconcile all validated data by averaging them into a single unit of data. Under certain circumstances, not all responses can be averaged.
Regardless of the data source, Chainlink has created a way to reliably and efficiently provide accurate data to smart contracts on smart contract blockchains.
What is Augur digital currency?
Another cryptocurrency in the oracle field is Augur , which has a decentralized and trustless oracle built on the Ethereum blockchain. It is also the first major decentralized application (dApp) developed using Ethereum, making it a major proof of concept for the technology. The concept of Augur is based on earning money from correct answers, users guessing about the outcomes of future events. Those who guess the result correctly get a reward and other people lose.
The less likely an event is to occur, the greater the reward offered for predicting its success. Agar digital currency, which is one of the digital currencies in the field of Oracle , thanks to its advanced forecasting model, produces advanced forecast data simultaneously, which ultimately Agar forecasts are often more accurate than Prominent experts.
Features of Augur
• Low transaction cost
• A user-created marketplace
• Due to the absence of any third party, the cost of transactions is given directly to the reporters.
• There are no restrictions in making the market. If a user wants to trade in this market , he can create a market for himself.
• Payments are made automatically and transparently as soon as the output is created in the market.
• Payments are automatic.
• Access is available to all.
Since Augur is a protocol without the need for permission, anyone can participate in it.
How does Agar digital currency work?
Agar digital currency is a decentralized take on betting that basically has a four-step betting process that includes: creation, trading, reporting and settlement.
- Creating a market on Augur is something anyone can do. All it takes is a small amount of Ethereum and a hot betting thread. Markets can be ticked off by anything from “Will Elon Musk sell Tesla to Apple in 2019?” To “Will the Cubs win the 2020 World Series?” People who create markets are allowed to set a creator fee in Ethereum, a percentage fee between 0% and 50%, which is collected after settlement. This acts as an incentive for users to create new markets.
- The reporting phase begins after the market closes. Profit-motivated reporters provide information about the actual outcome to the ager oracle, which determines the final market outcome and initiates settlement. Reporters who consistently provide accurate reports and information end up being financially rewarded while those who report reports that disagree with the consensus are penalized. Anyone with REP, the native token of Augur, can become a reporter and participate in this phase. Note that Augur users do not need reputation to bet on the platform, only reporters need to hold REP tokens .
- The settlement phase relies on smart contracts that are automatically executed on final results. User predictions that appear to be correct are rewarded. Reporters whose reports are found to be true and accurate are rewarded with reputation tokens, while those who do not respond or provide false information are penalized, their share of the REP going to honest reporting.
What is RLC digital currency?
RLC or iExec is a decentralized, open source cloud platform that runs on the Ethereum blockchain. RLC digital currency provides the ability for decentralized applications to have on-demand access to computing resources and technologies in the iExec cloud. RLC cryptocurrency enables blockchain to benefit from decentralized, cost-effective, high-performance applications such as servers and web hosting. RLC’s native cryptocurrency is the primary asset used to access services within the iExec infrastructure.
What are the advantages of using RLC digital currency?
This digital currency uses a reliable and open source desktop software called XtremWeb-HEP. This software can be used for hybrid public and private infrastructure, multi-application virtual image deployment and data management. This software provides all the basic features required for RLC digital currency and creates the ability to use smart contracts to coordinate the access of computing resources to decentralized applications. Smart contracts have information about the nature of computing resources, including disk space, amount of RAM, and type of processor.
What are the features of digital currency RLC?
The digital currency RLC is one of the digital currencies in the field of Oracle , which enables the use of Big Data applications and high-performance computing. Another advantage of this digital currency is that it is accessible, and because of high-performance computing, expensive and complex services are provided. Because this digital currency uses XtremWeb-HEP software, it is used in many fields including aviation, signal processing and high-performance finance.
iExec project applications
iExec can provide computing power for various applications. iExec can have excellent performance for applications related to artificial intelligence, financial applications such as DeFi applications , metadata applications, 3D graphics presentation applications, and cryptography related applications.
How RLC works
This project seeks to create a decentralized market to solve the problem of cloud computing. Professionals and even amateurs can buy and sell computing power in this market. Many people call this project the AirBnb of cloud computing. The iExec project intends to present its market through the following four elements:
Professionals and amateurs can provide their computing power to exchange RLC token.
Developers can rent their decentralized applications to earn RLC cryptocurrency.
It is possible to exchange data with RLC currency .
Amateurs and professionals can use these services by paying RLC tokens.
End users can make their purchases with euros and dollars, which is provided for the ease of using these services. The iExec network automatically converts these values into RLC tokens and these tokens can be given to people who have provided their computing power.