Guest Post

A New Era For Oracles In DeFi

Written by: Coinpedia

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Coinpedia

Crypto Journalist and Editor of guest articles in CoinPedia. I am also handling Outreach & Partnerships Manager. Contact me: [email protected]

    Dec 20, 2021

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    According to CoinMarketCap, a leading crypto data aggregator, the DeFi market cap is around $180 billion. This is quite an amazing feat for a concept that took flight a decade ago, and a testament to the limitless possibilities associated with DeFi. The introduction of smart contracts was a significant factor in the DeFi industry’s rapid growth. Smart contracts are computer programs that run within a blockchain and automate a series of transactions when certain conditions are met. 

    As a result, smart contracts contribute to the complete decentralization of the blockchain industry by allowing transactions to occur automatically and without the intervention of a third party. Smart contracts may also be used in the preservation of records, transaction settlement, clinical trials, supply chain implementation, real estate sales, and governance, among other things. 

    As appealing as the idea of blockchain as a self-contained, permissionless, and trustless system is, it would have no real-world applications if it couldn’t use external, off-chain data, which is where oracles come in.

    What are Oracles?

    Oracles are protocols in the blockchain industry that allow smart contracts to interact with external data. Oracles are third parties, and bringing them into a transaction may expose what was previously a straightforward transaction to external influence. The current state of oracles in the blockchain industry effectively invalidates the entire system by removing blockchain’s trustless nature. The blockchain is designed to function without the involvement of a third party, and the addition of Oracles undermines the blockchain’s model as a decentralized, trustees network. The majority of oracles in the blockchain space are quite centralized and have numerous flaws in terms of smart contracts and blockchain in general.

    Introducing QED, The Next Generation Decentralized Oracle Solution

    QED is the blockchain industry’s next-generation decentralized oracle solution. It is a robust economic model developed by 0rigin that connects multiple blockchains, smart contracts, and off-chain data sources. The platform is a battle-tested and proven iteration of the Delphi oracle, which has been live and running for more than 3.5 years. QED was created to address the issues that are currently plaguing the blockchain industry’s oracle protocols. 

    This oracle solution has a unique value proposition in that it is the first Oracle solution to cover both the technical and commercial aspects of Oracle protocols. QED has developed a robust economic model that distinguishes it from other blockchain protocols by ensuring accuracy in providing real-world data on-chain.

    The QED protocol is blockchain agnostic, which means it can be integrated with any public blockchain and scaled. QED has implemented financially dependable recourse mechanisms on the commercial side, allowing clients to use external collateral provided by QED that may have occurred due to systemic risks. QED also employs automated reliability scoring to eliminate underperforming oracles. To maintain its commitment to being a decentralized oracle solution, QED also employs distributed ledger technology. 

    Oracles in partnership would be given the native token QED, as well as an incentive to retain ownership, to encourage their use of the QED ecosystem. Furthermore, smart contracts based on the QED protocol are executed on the UX network, a fast and highly scalable network. QED’s innovative approach to the decentralized Oracle sector has positioned it as the ideal solution to the sector’s flaws.

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    Coinpedia

    Crypto Journalist and Editor of guest articles in CoinPedia. I am also handling Outreach & Partnerships Manager. Contact me: [email protected]

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