There is a big problem with today’s oracle providers, which is currently inhibiting them from reaching their potential value and use cases. Oracles at present are not fully trustless, transparent or decentralized. When oracles can overcome this problem, adoption will scale to an entirely new level and into the mainstream with it bringing an influx of money into the Decentralized Finance markets.
What is an Oracle?
A data oracle (such as Chainlink, Tellor, Band etc.) provides the transfer of real world data to smart contracts on the blockchain.
Why are Oracles needed?
Blockchains and smart contracts don’t have direct access to off-chain (real world) data. However, for many smart contracts, it is important to have relevant information from the outside world to function as intended.
This is where oracles are necessary, as they provide a connection between off-chain and on-chain data. Oracles are extremely important to the blockchain ecosystem because they open a gateway of possibilities to smart contract uses.
The Oracle Problem
Since smart contracts execute decisions based on data provided by oracles, they are key to a healthy blockchain ecosystem. The main challenge with designing oracles is that if the oracle is compromised, the smart contract relying on it is also affected. This is often referred to as The Oracle Problem.
Since oracles are not part of the main blockchain consensus, they are unfortunately not part of the security mechanisms that public blockchains can provide. The trust conflict between third-party oracles and the trustless execution of smart contracts remains a mostly unsolved issue.
Man-in-the-middle attacks can also be a threat, where a malicious actor gains access to the data flow between the oracles and the contract and modifies or falsifies the data.
The Modefi DAOS Solution
Modefi integrates major oracle and data providers to use them as complementary entities instead of treating them as competition. Integrating multiple oracles into the platform gives clients using Modefi’s DAOS the ability to obtain trustless, transparent, secure, and decentralized data.
To maximize the security and precision behind the data provided by an Oracle, multiple Oracles across multiple networks must be used simultaneously. Outliers, malicious actors, and
corrupt data are removed autonomously with no outside interaction through the use of Smart Contracts and multiple transparent data sources.
Modefi’s DAOS is a game-changing solution for DeFi, and clients that require the utmost reliable and trustless oracle data. It’s time to put an end to one of the most extensive problems known to blockchain once and for all.
Website — https://modefi.io
Email — info@modefi.io
Telegram — https://t.me/modefi_official
Telegram Announcements — https://t.me/modefi_ann
Twitter — https://twitter.com/Modefi_Official
Github — https://github.com/Modefi
