Before analyzing NULS Oracle, I will briefly introduce Oracle in Blockchain so that everyone can understand more about it! 😉
💻 What is Oracle in Blockchain?
Oracle in blockchain can be understood as a solution to provide, verify and transmit information from data outside the Blockchain (Offchain) into the Blockchain (Onchain). Oracle projects are projects that will be based on Oracle's solutions and operations to build and develop.
The nature of Oracle is seen as a bridge to connect data from the outside real world to the world inside the Blockchain. Therefore, Oracle needs to ensure the following basic properties:
To ensure high reliability, the data must be obtained from the correct source, and remain intact (i.e. it has not been altered) before being sent.
Oracles must be persistent to avoid disruptions in user experience.
Data quality: to encourage the quality of the data provided, Oracle often has solutions to reward or penalize data providers to ensure the quality of the data provided is always accurate and transparent.
✨ Oracle Application Examples:
A Protocol Lending project wants to lend a person 1 ETH worth 1k$ to borrow 500$ USD on their platform, if the price of that 1 ETH falls below 200$, the collateral's assets will be liquidated. And how does the other project know that the ETH price falls below 200$, Oracle is the solution. In this case, it will receive price information from all sources, (such as prices on exchanges, ...) then, it will verify, authenticate and transfer the ETH price data to the other Protocol Lending project so that based on that, the project can know the ETH price and execute the liquidation order on the Blockchain.
🐳Currently, Oracle projects are increasing, helping Blockchains expand the scope of smart contracts, not being limited to an Onchain scope. Helping the entire blockchain industry become more stable, transparent and secure.
⭐ Major Oracle projects in Blockchain include Chainlink, Pyth Network (PYTH), Tellor (TRB), SupraOracles (SUPRA),... with the participation of hundreds of data providers and thousands of projects using Oracles solutions.
💻 So what is the NULS Orcales project and how important is it to the NULS ecosystem?
✨ NULS oracle is the first Oracle project developed in the “NULS Ecosystem Ignition Initiative –NEII”, as well as the first Oracle project built on the NULS Blockchain, with the mission of querying, collecting, verifying and transmitting real-world data into the NULS Blockchain in a secure and reliable manner.
👍The NULS Oracle project has always followed a structured process to promote other projects, build trust and credibility, and encourage widespread participation from developers and investors. Ultimately, this project will accelerate the development and adoption of the NULS blockchain, making it the foundation of the future decentralized chain economy.
🤝The first platform will use the Oracle solution provided by NULS Oracle, NULSWAP, to apply to the “Lend” feature being developed in NULSWAP.
⭐The operating mechanism of NULS Oracle is that when there is a request for data from Oracle, the data will be queried from the data provider and verified, converted by Oracle, then the data will be sent to the requester.
To ensure that the data will provide high reliability and good quality, the information sources are always surrounded by checking measures. Of which, there are 2 main measures:
One is: During the verification process there is always a parameter created to determine the last time that data was updated on Oracle, if that parameter is not updated within 70 minutes, the supplier's data will be rejected and reverted.
Second: In order to submit information, the data provider must submit at least some amount of NULS and the accompanying amount of Oracle tokens. This will kick out free attackers who may just want to submit untrusted information. However, the data provider can borrow NULS and buy a small amount of Oracle tokens to attack the system to provide bad information. So to eliminate this possibility, the data provider must have a trust profile. This trust profile is formed at least 36 hours ago with 36 submissions and costs 1 oracle token ($ORA) per submission, until approved. This increases the cost of attack to a minimum of 36 transaction fees + 36 oracle tokens ($ORA).
Oracle's reliability also depends on the number of data filling, a minimum of 2 data sources and those 2 data sources will be seed sources supported by the Oracle project itself (guaranteed reliability). Anyone can provide data to Oracle, however, if the data is not guaranteed to be reliable, the data provider will be marked for the deposit amount and if the deposit is lower than 80% of the required deposit amount, the data they provide will be permanently expelled.
💰For the Oracle token ($ORA), in addition to helping verify the trust profile for data providers, it also brings rewards to Oracle token holders, specifically they will receive 50% of the revenue from data providers staking on the Oracle platform and the opportunity to receive Airdrop rewards from other projects in NEII.
🎉According to the above analysis, it can be seen that NULS Oracle has fully met the basic characteristics of an Oracle project, ensuring its foundation and development direction. Along with the "NULS Ecosystem Ignition Initiative - NEII", NULS ORACLE is receiving great attention from NULS blockchain investors. The proof of that is the number of NULS betting on the NULS Oracle project to receive Oracle tokens ($ORA) has reached 2,000,000 NULS, equivalent to nearly $700,000.
🚀 Hopefully, the NULS ORACLE project will be a launching pad to contribute to promoting the NULS BLockchain ecosystem to develop sustainably and reliably, creating a safe investment environment for investors and developers in the future.
What do you think about NULS Oracle? Leave a comment below to discuss together! 💋
