🔔 Preface Summary:
With the rapid development of blockchain technology, obtaining reliable and high-precision market data has become an important requirement for decentralized applications. Pyth Network is a leading decentralized data oracle protocol that provides a solution through its unique architecture and strong technical support.
1️⃣ Project Introduction:
Pyth Network is an application-specific blockchain operated by Pyth’s data providers, called Pythnet. Pythnet aims to securely aggregate prices from multiple data providers into a single aggregate price and serve all blockchains (except Solana mainnet). Although Pythnet is powered by Solana technology, it is a separate chain from Solana mainnet.
2️⃣ Project highlights:
The main function of Pythnet is to provide a secure and reliable computational foundation for Pyth's price aggregation. Pyth's data providers submit their price measurements, and the Pyth protocol combines this data into a single aggregate price. This computation needs to be secure and reliable to ensure that applications receive accurate and up-to-date price information. Pythnet achieves these goals in two ways:
● Security: Anyone can verify the accuracy of price calculations by replaying the network’s transaction log. Wormhole guardians perform this verification when constructing Pyth price update messages that are transmitted to other blockchains.
● High Availability: Pythnet has built-in redundancy, and the network can operate as long as more than 2/3 of validators are online.
3️⃣ Working principle:
Pyth is a protocol that allows market participants to publish pricing information on-chain for others to use. This process involves three parties:
● Publishers: Submit pricing information to Pyth’s oracle program. Pyth provides multiple data publishers for each product to improve the accuracy and robustness of the system.
● Oracle program: combines data from publishers to produce a single overall price and confidence interval.
● Consumer: Reads price information generated by the oracle program.
Pyth’s oracle program runs simultaneously on the Solana mainnet and Pythnet, with each instance responsible for its own set of price feeds. The Solana price feeds are available to the Solana protocol, while the Pythnet price feeds serve over a dozen blockchains.
4️⃣ Advantages of Pyth Network:
Multi-chain support: Pyth Network’s price feeds provide real-time financial market data on over 50 blockchains, including EVM chains such as Solana, Ethereum, BNB, Avalanche, and chains such as Cosmos, Aptos, Sui, and NEAR. Pyth’s market data is provided by over 95 reputable first-party data providers, including some of the world’s largest exchanges and market makers.
Real-time Price Data: Pyth Network’s price feeds publish reliable aggregations of these prices multiple times per second, covering over 450 price feeds across different asset classes such as US stocks, commodities, and cryptocurrencies.
High accuracy and security: Pyth uses a pull oracle system, where users can request the latest price updates in a variety of ways. Anyone can submit a price update to the on-chain Pyth contract, which verifies its authenticity and stores it for later use.
5️⃣ Developer support and products:
Pyth Network provides a variety of products and tools for developers:
● Price Feeds: Provides real-time prices for 500+ assets on 55+ blockchain ecosystems.
● Benchmarks: Provides historical Pyth prices for on-chain and off-chain usage.
● Entropy: Allows developers to generate secure random numbers on the blockchain.
🎯 Summary:
As a decentralized oracle protocol, Pyth Network promotes the development of decentralized finance (DeFi) and other blockchain applications by introducing high-quality market data to the blockchain. Its multi-chain support, high-precision data, and developer-friendly tools make it an important player in the blockchain ecosystem. In the future, Pyth Network will continue to expand its data provider network and blockchain integration to become an indispensable data infrastructure in the blockchain world.
By using Pyth Network, developers and users can obtain reliable, secure and real-time market data, driving further innovation and development of blockchain technology.
This article does not constitute any investment advice! Investors need to carefully assess risks and market performance! #DYOR
🤝 Thank you everyone！
