Smart contracts and blockchain technology are reckoned as some of the greatest innovations the world has ever witnessed. However, amazing technologies come with challenges. Thus, one constant challenge facing these innovations is getting real-time data that they can operate with. Both digital contracts and the distributed ledger technology rely on Oracles to provide them with real-world and real-time data as they are incapable of obtaining the data themselves.
Similar to the modus operandi in Ancient Greece where natives were dependent on people called Oracles, who were regarded as the mouthpiece of the gods, especially for divine instructions. A symbiotic relationship exists between Oracles and blockchain such that the latter refers to the data sent to stay updated. Notwithstanding, where the data provided by an Oracle is inaccurate, it is very likely that the network nodes will reject them. In view of this, the need has arisen for an Oracle that can not only connect to blockchains and smart contracts, but has the ability to obtain accurate data.
Beyond the challenge of inaccurate data, some Oracles lack the bandwidth to facilitate transactions on a large scale. Using an Oracle that was only created to enable smart contract transactions below $50 million to execute transactions above that limit could undermine the security of such contracts and expose users to unforeseeable risks.
In a bid to address these challenges, a number of Oracles have been created. Standing out from the dozens of Oracles is the QED protocol, which has carved a niche for itself as an Oracle protocol and aggregator with decentralized infrastructure.
Feeding accurate data to smart contracts
Qed Network was developed by Origin and launched to connect multiple blockchains, off-chain sources and smart contract protocol. The QED ecosystem revolves around a lasting economic model that aims to reward best-performing oracles and naturally eliminate poor-performing. Overall, this is all geared to ensuring global accuracy across all blockchains and smart contracts.
Most Oracles pride themselves as being innovative and high performing, but as already observed, they fail to cater to commercial conditions when obtaining and delivering real-time data. Conversely, the QED protocol is custom-made and applicable under various conditions, making it the first Oracle protocol created with commercialization in mind.
Since it is possible for low-performing Oracle protocols to get rewarded for doing less and turning in less accurate data, QED’s economic model addresses this such that the protocol prioritizes protocols with high accuracy levels over the rest.
Leveraging the UX Network, a blockchain infrastructure that powers decentralized economies, the QED protocol can execute sophisticated smart contracts as demanded by decentralized finance and decentralized applications. UX Network is censorship-resistant and facilitates the completion of over 20,000 transactions per second across different blockchains and at optimal costs. As such, the QED protocol is incapable of being taken over by a centralized entity.
QED’s native token will play a pivotal role in helping the protocol achieve its data aggregation functionality. The native token will be used to incentivize the accuracy of data obtained from the Oracles integrated on the protocol. QED Tokens will be allocated to Oracles equitably, thereby promoting a healthy ecosystem and allowing the most efficient Oracles to be in charge of the protocol.
The native token has a circulating supply of 400 million and an overall supply of 1 billion. The remaining 600 million supply will be minted via the protocol’s fee structure. Every Oracle who is willing to register on the protocol will need to have a required amount of the QED token. Public sale for the native token was held in August.
Conclusion
QED protocol is set to be a one-stop solution for data aggregation with the help of the UX Network. Bad actors have always exploited the inefficiency of price oracles on DeFi protocols leading to a slew of flash loan attacks, since DeFi became a major appeal to investors. With the emergence of Oracle protocols QED Network, exploitations of such nature will be a thing of the past.
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