The oracle must have horizontal expansion capabilities. As a Layer 2 oracle project independent of the “chain”, DOS Network can serve all current smart contract platforms.
Original title: “Break the barriers between internal and external worlds, oracle DOS boosts DeFi value growth”
Written by: Zhe Rong
“A person’s brain is cut off from the body and placed in a tank containing a nutrient solution to maintain brain survival. The nerve endings of the brain are connected to a computer, and this computer sends information to the brain according to a program to keep him Everything is perfectly normal perception…”
This is Hilary Putnam’s description of the so-called “brain in a tank” proposition in “Reason, Truth, and History”. The computer is to the brain in the tank just as the oracle is to the blockchain in the encrypted world. The existence of the blockchain allows the blockchain to read and call off-chain data, breaking the barriers between the internal and external worlds.
As a connector between the blockchain and the “real world”, many decentralized applications that need to interact with off-chain data platforms cannot do without oracles, such as decentralized derivatives platforms, lending platforms, stable coins, insurance applications, Forecast the market and so on.
As the blockchain track closest to finance, DeFi has undoubtedly greatly leveraged the power of oracles in this round of fiery growth.
In the DeFi bull market, the power of the oracle and its own prosperity
In terms of the internal business relationship between the key DeFi track and the oracle, the two have shown a tightly coupled state, and there is a tendency to further enhance the integration.
As far as “classical DeFi” is concerned, whether it is decentralized stablecoins such as DAI and Basis, or decentralized lending platforms represented by Aave and Compound, they have invested heavily in oracles, and the latter’s downtime/delay It may cause huge losses to related platforms.
Under the AMM mechanism, the loss suffered by the LP due to price fluctuations, source: Medium
In addition to classical DeFi, the ubiquitous “impermanent loss” in the recent bull market led by the DEX of the Automatic Market Maker System (AMM) has also aroused people’s concerns about oracles. Under the AMM mechanism, continuous price fluctuations not only cause the liquidity provider (LP) to be unable to fully realize the appreciation of its equity pledge token against the price, but also aggravate the depreciation of its overall assets.
As far as the oracle track itself is concerned, in the bull market set off by this round of DeFi, tokens related to concepts have achieved gratifying performance:
According to statistics from the digital asset research platform Messari, as of August 7th, oracle-related tokens have generally recorded monthly increases of several times or even more than ten times. During the period, the launch of LINK and Band on Coinbase will undoubtedly further increase the imagination of the entire oracle track. space.
It is worth noting that among the many oracle concept tokens that Messari is concerned about, DOS won the crown with an annual growth rate of as high as 4,125%. At the same time, it is also the most domestic oracle of the 7 projects in the picture project. DOS Network also made the most positive response in this round of “Yield Farming” boom.
As the oracle track, why is the dark horse situation of DOS strong? Let’s start by understanding the working principle and operating mechanism of DOS Networ.
DOS Muxiu Yulin’s confidence: more comprehensive multi-chain support and ecological applications
In the oracle track, the main solutions can generally be divided into: data oracles and computing oracles, and they are usually based on the Ethereum blockchain to provide services. This general situation is a practical response to the current DeFi ecological status-market economy , The main supply of products will definitely flow to the places where demand is most concentrated.
But while meeting the demand, this status quo undoubtedly has many problems:
In the liquidity mining frenzy, the Ethereum Gas fee has risen at a speed visible to the naked eye, reaching more than 500Gwei at one time. If the prophecy is to maintain a stable supply of credible data services under this situation, they can only choose to pay a premium. The gas fee of the company is “enhanced”, otherwise it can only accept the tragic situation of “high latency”, resulting in a “lose-loss situation” between the oracle and the public chain;
Along the context of liquidity mining, we can observe the epigenetic public chains represented by TRON and EOS, which are low-cost, easy to operate, and support the issuance of high-volume USDt (the TRON is particularly obvious, the trc20 version of USDt circulation More than 4.2 billion U.S. dollars) and other characteristics, have gradually built their own “DeFi ecosystem”, which means that oracles must have the ability to scale horizontally to cope with the need for service migration that may arise in the future, but it is deeply bound to Ethereum. The prophets generally lack this ability.
In addition, some oracles also have problems such as single node failure, unfair node selection mechanism aggravates the Matthew effect/collusion, or the system’s long voting cycle reduces decision-making efficiency.
Taking into account the above issues, DOS Network supports as many public chains as possible at the beginning of its design: In addition to Ethereum, EOS, TRON, IPFS, Thundercore, etc. are all within the “target range” of DOS, in other words, as independent “Chain” Layer-2 oracle project, DOS can serve all current smart contract platforms.
In order to avoid aggravating the Matthew effect and related centralization problems by selecting service nodes based on prestige, DOS Network uses a random method to select working combination nodes. It uses verifiable random equations (VRF) and threshold cryptography (Threshold Cryptography). Generate a safe, unpredictable random number that can be publicly verified, avoiding various problems of the reputation system, and being more fair and just for participating nodes.
However, this “anti-monopoly” design did not delay the entire network. On the contrary, DOS Network can still provide near real-time services for the public chain, including status monitoring, oracle request analysis, data acquisition and result analysis, and collaboration among group members The off-chain links such as generating complete data proofs can be completed in one second. As long as the throughput of Layer 1 can match, the entire process will be very smooth.
At present, on EOS and TRON, DOS Network has been able to achieve almost “zero delay”. I believe that as Ethereum 2.0 becomes more complete, this experience can also happen on it.
Also worthy of users’ attention is that DOS Network matches a wide range of network support request types: Web API, Premium Web API, Cross-chain API, and Consensus-based off-chain computing. Computation), as well as ZkSNARK-based off-chain computing with both expansion and privacy properties are among them.
This “robustness” of DOS Network supports its strong financial data supply capabilities on the one hand, such as providing price/settlement value and contract expiration time in the decentralized financial derivatives platform to determine gains and losses, and provide stablecoins “Exchange rate quotation” assists decentralized insurance in making policy underwriting and payment decisions, and can complete other data interface services such as navigation, flight, weather, etc.;
On the other hand, DOS Network has won the appreciation of many partners. As of press time, DOS Network has cooperated with heterogeneous cross-chain platform Nerve Network, DeFi rookie, lending investment platform Fortube, the established public chain IOST, Quarkchain, Stable currency issuance platform Meter, privacy currency SERO and other major agreements and projects reached strategic partnerships.
So, in the DOS Network ecology, what are the functions of DOS tokens and what value does it produce?
DOS token: the guardian of network security and the propeller of value growth
DOS Netowrk involves three types of participants, DApp developers, node operators, and advanced payment data sources. DOS tokens are their connectors, which activates the network, promotes the ecology, guarantees security, and ultimately promotes value growth. function.
The running diagram of the entire DOS Network and the participation process of DOS tokens
DApp developers or calling contracts must pay a processing fee to the DOS oracle node for each off-chain data or verifiable calculation request that is fulfilled and processed. The payment method can be a single-use payment or a subscription-based usage model. DOS tokens will be the first supported fee token, that is, the processing fee will be paid by the oracle user to the node operator in the form of DOS tokens.
Node maintainers need to mortgage a certain amount of tokens to join the network to provide oracle services for smart contracts and developers, and to earn commissions and mining rewards. Malicious nodes will be detected, and as punishment, the mortgage of malicious nodes will be confiscated.
DOS tokens also grant node operators and token holders the right to govern the oracle network and ecology. For example, node operators and token holders can vote to vote whether to support and which stablecoins to support as fee tokens.
After supporting off-chain payment data sources and online data transaction markets in the future, smart contracts and developers requesting off-chain payment data will also need to pay corresponding fees to the payment data sources.
In addition, DOS tokens are also associated with a series of incentive plans of the network. For developers, all developers who submit development plans and token usage certificates will get DOS tokens for free; node operators can The collective “mining” 350 million (10% of the total) DOS token rewards by pledge DOS tokens to the system.
The total amount of DOS tokens and distribution details
As mentioned above, DOS Network has responded positively to the liquidity mining boom compared to other oracle peers. Since August 18, it has drawn 100,000 DOS tokens from the “Ecological Construction Retention Fund” and allocated them to Uniswap (DOS/ETH) and Balancer (DOS/USDC) pools are available for users to mine, and at the same time, 100,000 DOS tokens are regularly destroyed every two weeks.
As of September 9th, Beijing time, DOS’s Uniswap pool has assets equivalent to approximately US$450,000 and a 24-hour transaction volume of approximately US$240,000; the liquidity in the Balancer pool is approximately US$170,000, and a 24-hour transaction volume is approximately 3.2 Ten thousand dollars.
Currently, the Coingecko interface shows that the DOS token industry has been launched on Uniswap, Gate.io, Poloniex, BKEX, BitMax, Binance DEx, and 1inch. The 24-hour trading volume exceeds 1.2 million US dollars, and the highest record in the past six months is 30. The increase of more than fold is like a black horse in this year’s oracle track. There may be broader prospects for liquidity expansion and price hikes.
This optimistic positive expectation is also reflected in the community of the DOS project. As one of the few local projects on the track, DOS has a very high degree of trust overseas, with nearly 10,000 Twitter followers and the Telegra English community. With more than 6,000 members, these indicators are far ahead of their local counterparts.
Under the macro background of the US stock market being under pressure and the growth of major economies expected to decline, the growth of the relatively independent digital asset market has also shown weakness. The market has undoubtedly entered a stage of adjustment, and it remains to be seen how the market outlook will be.
But what is certain is that there are still many variables in the war on the oracle track. It does not follow the “winner takes all” and “first insight” competition logic of the public chain track of assets such as Bitcoin and Ethereum. On the contrary, Due to the reach of the layer-1 ceiling, the layer-2 sector is advancing rapidly. Layer 2 protocols including zkRollups, Plasma, Lightning Network, OMG, Liquid, etc. are all trying to snatch “anchor BTC” or “USDt” and other “high volume” “Strong liquidity” assets.
The long-lasting DeFi spring breeze continues to call for a more comprehensive state of integration of assets and technologies. The demand for higher-level credible financial data supply will inevitably become more complex and diversified. I believe that with complete ecological support and natural multi-chain integration Advantage, DOS Network can interpret a bigger story in the future oracle competition.
Source link: realsatoshi.net
