QED Protocol the Newest Method for Blockchain Oracle Network
Oracle provides real-world and real-time data to both digital contracts and distributed ledger technology as these two technologies cannot obtain data for themselves. Blockchain technology and smart contracts are known to be the greatest innovations around the world. But they must rely on oracles to receive data which is sometimes inaccurate. Apart from inaccurate data, Oracle also lacks the bandwidth to facilitate transactions on a large scale. The Delphi oracle software for oracle has been in existence for more than four years. The software is widely used by WAX blockchain, the most used layer-1 blockchain with over 16 million daily transactions and 500,000 users.
For the last three years of operation, WAX blockchain has been conducting up to 8,000 transactions per second. Delphi oracle has proven to be effective by pushing more than 1m data points in their lifetime. Even during the Crypto black Thursday crush, the software never ceased to function. This proves how the project has been so powerful. But, using an oracle created to only enable smart contract transactions below $50 million to execute transactions above the limit undermines the security of the smart contracts by exposing users to unforeseeable risks.
To address the challenges, QED protocol was created as an aggregator with decentralized infrastructure.
QED Model Protocol
QED is developed by origin as a decentralized oracle to connect multiple blockchains, smart contracts platforms, and off-chain data. The protocol is a successor of Delphi oracle, the software which currently powers algorithmic stable coins, prediction markets, and other applications on the EOS main net. Whereas oracle publishes a hash of the observed value together with random nonce during the commit phase, QED protocol employs a commit reveal mechanism. In the reveal phase, oracle publishes their actual value and nonce. Therefore, the smart contract can only accept the value and concatenated nonce after successfully hashing into the previously submitted commit hash.
QED’s robust economic model enables oracle to provide external collateral as a bond to their smart contract eliminating systemic risk. Oracle capital efficiency is determined by systematic and continuous reliability scoring and naturally eliminates poor performers in the system to maximize global accuracy. The protocol operates entirely on the blockchain without failure, whereby it is economically bound by the QED token.
QED is one of the first oracle protocols that was created with commercialization in mind. Its market now scales proportionately to unlock the vast potential of decentralized economies. Hence allowing a fair value exchange environment to allow oracle to evolve and discover pricing from true supply and demand. The protocol prioritizes protocols with high accuracy levels over the rest. QED aims to integrate with any public blockchain so that competing oracle protocols can leverage the protocol’s unique economic model.
The QED is based on a UX network that runs the core smart contracts for the system, a blockchain capable of processing 20,000 transactions per second. Its trustless bridge allows QED to connect with multiple blockchains. Oracle capital efficiency is determined by systematic and protocol that cannot be taken over by a centralized entity. The UX network, launched in August 2020, is a high-performance, highly scalable, and permissionless blockchain. With its advanced resource model and market facilities, it provides long-term predictable resource costs. Therefore, oracle operations on the UX network can be performed directly through an interface with the chain.
The execution of QED is designed to be flexible and fit for purpose. Since QED is a multi-blockchain, it can effectively connect oracle to smart contracts within a risk framework that has financial and commercial logic. It can also avoid recursive congestion and seek the optimal venue for execution. Furthermore, the model can cater to customers that have selected the chain upon which they wish to operate.
QED Tokens
QED tokens will be given to oracles. The tokens will help to incentivize as well as allocate ownership to ensure a healthy ecosystem and also allow the most efficient oracles to be in charge of the protocol. Thus, the tokens will play a vital role in helping the protocol achieve its data aggregation functionality. The token has a circulating supply of 400m and a maximum supply of 1B, whereby the remaining 600m supply will be minted via the protocols fee structure. A stimulated amount of QED tokens will be required for an oracle to register and operate on the protocol. However, QED tokens are not designed to be staked for collateral like some other decentralized finance (DeFi) tokens in circulation today.
Conclusion
QED creates a balanced commercial environment for users and oracles to operate within decentralized protocols. Its use of bonded external capital avoids systematic risk to oracle users.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Bitcoinist, @Khareem Sudlow