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Oracles are one of the most significant protocols of the blockchain industry that keep the sector running using oracles. The primary function of oracles is to supply real-world and real-time data to distributed ledger technology and smart contracts because they cannot acquire data independently. Decentralized oracles were introduced to address the oracle problems plaguing the blockchain ecosystem. A decentralized oracle or decentralized oracle network (DON) is a network of autonomous blockchain oracles that feed data to a blockchain. The decentralized oracle network's nodes and oracles each independently retrieve and bring data onto the chain from an off-chain source. The data is then aggregated for the system to determine a deterministic value of truth for that data point. Oracle problems are resolved via decentralized oracles. Despite the recent crypto crisis, Oracle cryptocurrency projects remain a popular investment option. In this article, we take a look at the top 5 Decentralized Oracles Crypto Projects.
QED
QED protocol is built on the DelphiOracle. With its strong economic foundation, this decentralized oracle aims to close a gap in the crypto industry. It links several blockchains, off-chain data sources, and platforms for smart contracts. Its security, accuracy, resilience, and complete decentralisation make QED the ideal alternative protocol. Compared to comparable oracle protocols like Chainlink, which have an average refresh rate of 120s, this oracle's data refresh rate of 0.5s is impressive and shows potential. It enables more decentralized applications with reduced data finality requirements and higher refresh rates. DelphiOracle is the most frequently used oracle on the blockchain, having been utilised over 60,000 times on the WAX blockchain. The QED oracle protocol is robust and dependable. QED has always used external collateral and has never relied on a system token for collateral - it predicted the death spiral of systems like Terra Luna.
Band Protocol
Band Protocol is one of the famous oracles to check out. This decentralized oracle protocol on the Ethereum and Cosmos blockchains provides real-world data to dApps and smart contracts. Band Protocol is a component of the Cosmos Network because it was developed using the Cosmos SDK. Nevertheless, it may function with other blockchains all because of Cosmos's Inter Blockchain Communication (IBC) Protocol. Band Protocol attempts to do this in light of the DeFi industry's rapid expansion and the dApps' need for timely and reliable data delivery. With the help of BAND tokens, the Band Protocol enables network users to reach a consensus on data verification. During the verification process, the token serves as collateral. Using its native BAND token, the Band Protocol rewards its Validators for responding to requests for external data, taking part in consensus, and creating new blocks.
API3
The API3 project successfully addresses the oracle issue by establishing decentralized APIs that make it simple for blockchains to access off-site data. By generating potent decentralized apps that support the expansion of DeFI, it is a reasonably simple and reliable solution that does not need intermediaries. These dAPIs come directly from the blockchain. As a result of the combination of different operators, they enable API providers to host the oracle nodes directly, promoting a direct connection between the blockchain and data sources. More protection is provided by dAPIs, which likewise deliver accurate data while shielding API providers from nefarious third parties.
Decentralized Oracle Service Network (DOS)
Another oracle that has performed successfully in providing current data to blockchain-based systems is DOS. The layer-2 protocol, the Decentralized Oracle Service Network (DOS), is designed for horizontal scalability. More nodes are added to the network to boost the oracle protocol's computational capacity. DOS has also demonstrated its security to be resilient to cyberattacks. The crypto-economic model is also used.
Decentralized Information Asset (DIA)
Decentralized Information Asset (DIA) is a platform that provides users with a way to gather, validate, and distribute valuable data. A Swiss-based Not-for-Profit organization owns the open-source software. Through the provision of reliable real-time data that drives DeFI, this oracle platform seeks to bridge the gap between blockchain and the natural world. Its economic structure is comparable to the Band Protocol, rewarding active community participation with crypto incentives. This Oracle platform encourages openness by making its data feeds open-source and readily available for audits if necessary. DIA has enormous promise for the DeFi Ecosystem's oncoming, explosive growth.
Conclusion
Decentralized oracle is a multi-layer, cross-platform Oracle solution that can bridge to support virtually any blockchain and provide data to any decentralized ecosystem that requires it. Blockchain oracles are the key to unlocking the future that smart contracts have for us. For smart contracts to be the superior form of agreement, we need access to diverse and reliable data.