INTRODUCTION :
Hello there , its your favorite Newdex influencer ,Otto11 here and I trust you had a great weekend?
A lot of updates happened in the cryptospace and as expected of NewDex and DeFiBox there were updates , new developments that were announced by the core teams.
One of this major announcements was the one on the 13th of November , where Defibox released an on-chain oracle.
So , here we’d be quickly talking about what an Oracle is and how Defibox plans to use it.
ORACLES IN DEFI
Well , as it is typical of me , I would like to first touch all the forms of definitions relating to the topic so let’s start with. . .
What is an Oracle? :
- In the simple sense, It is understood as a medium through which advices or prophecies are sought from gods.
- Another definition would explain an Oracle as a collection of data treated as a unit with the sole purpose of storing and retrieving information , as this helps shed a little more light on it.
- The third and most suitable definition of an Oracle in DeFi : is as a third party service that provides smart contracts with external information triggering a predefined command.
Real quickly though :- a quick definition of “Smart contracts” are that they are lines of code that are stored on a Blockchain and automatically execute when predetermined terms and conditions are met.
With that introduction and the need to better understand , before we going further we will be looking at few more things .
- How ORACLES work / what they do.
- The types of Oracle .
- What Defibox will do with it.
HOW DO ORACLES WORK? :
Going by our initial definition the Oracle is the access to the outside information needed by the blockchain to carry out the command given to it.
What I’m saying here is …
Take for example Real estate or probably a moreconvenient example like say a hotel for instance , where the lodger calls the front desk and orders for a meal .
Then after a few minutes the waiter delivers the food to the Lodgers room , Here we will tag the Lodger as the “Outside information” and the Frontdesk which in here acts as the link to be the “Oracle” while the “smart contract” would be the waiter that delivers the meal.
TYPES OF ORACLE IN DEFI :
Oracles in Decentralized Finance are divided into two main parts namely :
a). Hardware Oracles.
b). Software Oracles.
A). Hardware Oracles : With emphasis on the “hardware”to part this requires the use of mostly gadgets or equipment to get information that would be acted on by the smart contract a good example would be the scanner at supermarts or the proposed goal line technology used in football ( soccer).
B). Software Oracles : The software Oracles are the types that utilizes data from multiple providers to determine a precise and accurate calculation being the most commonly used types an example would be price flunctuations of assets when make trades.
WHAT WILL DEFIBOX DO WITH IT ?:
As Defibox is a decentralized exchange built on the EOS platform it’s newly released Oracle supports the swap mining contract to automatically obtain accurate prices of assets.
Another thing that the on-chain oraci would support is the price feeding of the USN Stablecoin , thereby fully incorporating with the USN contract.
Finally : There are chances that there’d be more announcements and improvements as Defibox continues to blaze trails .
