I advise you to watch less Doraemon. Last time, we mentioned in the article "Is there any connection between Cex, Dex and Sex?" that oracles are a roadblock for traders to get rich in Dex . Because Dex, which adopts the AMM trading system , lacks a price discovery mechanism , it is necessary to introduce arbitrageurs to correct the transaction price so that it is consistent with the market price. To put it simply, an oracle is a tool that provides price discovery services for smart contracts in real time . Some people must be concerned about such irrelevant questions: So, why is the oracle called an oracle? The word "oracle " is literally translated from "Oracle". It originally refers to the oracles sent down by gods when ancient primitive humans prayed and offered sacrifices to gods. The purpose was to convey the will of gods and thus predict the future. In the blockchain, it means that by calling external data , data assets can be realized and valued, and the portability of smart contracts can be expanded. Therefore, the relationship between oracles and predicting the future is probably like the relationship between my daily prayer for getting rich and the fact that I have to go to work the next day, that is - there is no relationship . Assuming that everyone has quickly seen the situation and given up their fantasies , we can now focus on the specific implementation methods of different types of oracles: gossip deduction, tortoise shell divination, and wizard spiritualism. Currently, there are three main sources of data for oracles: trusted centers , distributed nodes , and trusted alliances . Centralized oracles (taking Oraclize as an example) mainly adopt the first method, that is, data is provided by a trusted center. The centralized oracle uses a centralized oracle to call data from one or more data sources specified by the service requester, and summarizes the results and feeds them back to the service requester. As shown in the following figure: Decentralized oracles (taking Chainlink and DOS Network as examples) mainly adopt the latter two methods. Multiple predictors jointly provide data acquisition services, and all predictors' answers within the specified time are summarized and fed back to the service requester. As shown in the following figure: The hallmark difference is that centralized oracles require a trusted third party to act as a verifier or review agency to prove their innocence, while decentralized oracles perform mutual verification between multiple prophets . This difference determines the difference between centralized oracles and decentralized oracles in terms of user experience and application : 1) Since the cost of a single data source is much lower than the cost of aggregating multiple data sources, centralized oracles are more cost-effective , but this also means that there is a higher risk of single point failure ; 2) Decentralized oracle networks are more conducive to integrating resources from multiple parties (project parties and multiple predictors) to jointly expand the oracle network, and are therefore more suitable for the blockchain ecosystem , but data corruption will be an important threat to its security; 3) When other conditions remain unchanged, the higher the timeliness of data calls (such as real-time calls to ETH prices) , the more prominent the advantages of centralized oracles will be. For data service requests with lower timeliness requirements (such as obtaining databases, annual data, etc.) , decentralized oracles will have more advantages. Seeing this, I believe everyone will have a common doubt in their hearts: Compound, large-scale crypto assets are forcibly liquidated by the system. Compound, a decentralized lending platform, uses Coinbase (a centralized exchange) as an oracle to feed price information. Therefore, when the price of the stablecoin DAI on the Coinbase exchange fluctuated drastically , the liquidation line was directly triggered , causing losses of more than US$100 million . Chainlink (LINK), price growth over the past year. Chainlink, a decentralized oracle network, has provided off-chain data on-chain services for multiple DeFi protocols including Aave, Synthetix, Ampleforth, etc., and in the future it will not be limited to providing services in the DeFi field. The rise of DeFi has led to the development of various oracles, and periods of massive capital inflows inevitably mean frenzied collective profit-seeking behavior. In this process, centralized oracles do have a first-mover advantage in terms of cost-effectiveness and timeliness , which is especially suitable for the early stages of development when there are speculative opportunities everywhere and a strong demand for real-time prices. Although decentralized oracles still face many challenges now and in the future, especially in terms of user experience (price and timeliness) , their essence is more in line with the development of the blockchain ecosystem. The current problems of Ethereum, such as high GAs fees and capacity expansion, are undoubtedly the ceiling that any Dapp and infrastructure construction must face. With the improvement and resolution of this problem, it will also provide ideas for the improvement of supporting facilities, which will inevitably include decentralized oracles. So, back to the question that everyone is most concerned about: Can you make money? The temptation of quick money is indeed great. After all, watching others make money is more painful than losing money yourself . But remember: there is a limit to quick money. The market will learn and grow from a large number of speculative behaviors in the early stage, making it increasingly difficult to make money from speculative transactions. What this implies is that if you want to make quick money, the ability to choose the right time is very, very important, and you must grasp the time of entry and exit very carefully . The reason why this point is emphasized is that the ability to choose the right investment timing is important in any investment behavior, but in speculative behavior it is so important that it can result in either huge profits or huge losses . For long-term investment, it is necessary to pay attention to the underlying logic of a project and combine it with the ecosystem to judge its future development. The initial learning cost will be relatively high, and in the later stage it depends on whether the mentality is stable . This lesson can be seen from the life of the early Bitcoin holders in the past ten years. People like me, who have been described by my mother since childhood as "not even able to eat hot shit ", have long been accustomed to lying flat on the spot. Their reactions are slower than those of normal people, not to mention the storms in the speculative market. But I still have a dream. While trying to keep up with the development of DeFi, I also make a fixed investment plan in advance and accumulate strength silently. The smart deposit of Biyin wallet is very suitable for me at my current stage. The interest rate is higher than that of ordinary current accounts, and it supports redemption at any time. There are three cycles to choose from: 7 days, 14 days, and 28 days , which can be configured based on my usage of my assets.
The subscription time is fixed, every Tuesday/Wednesday/Thursday/Friday , and the rollover and reallocation plans should be made in advance. Be prepared to see a potential stock one day and make a big profit, becoming rich overnight , hehe. |
