The usual Oracle is an indirect oracle. They pledge the security deposit to predict, reward good nodes and punish bad nodes. In indirect Oracle, the credit risk of the node uploading data determines the cost of attacking Oracle data. If a $1 trillion asset is derived from the price provided by the Oracle, the credit of the Oracle node should also match it. This is obviously impossible in reality. No matter what node is used, randomness cannot be guaranteed. This is an essential problem, not a technical problem, so the indirect Oracle can only be used in small-scale non-financial scenarios.
We believe that with the rapid development of blockchain, whether it can exchange value safely and efficiently at low cost has become the core standard to measure the application value of blockchain. Therefore, it can be said that the measurement of blockchain application value is inseparable from the objective measurement of assets on any chain. Value, price is an important basic part of realizing value exchange. We expect to provide data-driven forecasting service based on “asset support events” and data correction mechanism based on fact verification. The Oracle can solve the fundamental problem of the trusted source of blockchain data through the market arbitrage mechanism.
For example, if a miner intends to quote 1eth = 2000usdt, he needs to transfer 1eth and 2000usdt into the contract. After that, any verifier thinks that the price has arbitrage space, he can trade eth or usdt according to the quotation 1eth = 2000usdt in the quotation pool. This mechanism ensures that the quotation is either the fair price in the market or the equivalent price recognized by the bidder (i.e. 1eth is equivalent to 2000usdt). Of course, the verifier is two-way. The executive power is 1eth = 2000usdt. At the same time, he needs to provide his own quotation. This process is the price verification period.
1. All verifiers
Of course, if you can’t participate in quotation mining in real time, you can also host the assets to the quote vault, where there will be quotation components written by officials or other developers for you to choose from.
In each T1 time period, the final price of block n of the transaction pair is generated according to the weight using all valid Quotations (quotations that have not been taken away and have not been traded) in this time period.
Anyone can write their own quotation components in the quote vault to form automation, such as:
1) Internet URL link;
2) Search engine;
3) Data of other blockchains;
4) IPFs data of interstellar file system;
5) Sensor data, etc.
The function of quote vault is to provide honest quotation for mining, and find that the quotation deviating from the market is corrected and profitable. The function of this module mainly includes two aspects:
1. It is convenient for anyone to participate in the system and obtain benefits
2. Participants and institutions work together to maintain system security
HazelWord Twitter ：https://twitter.com/HazelWordOracle