A Decentralized Oracle or a Decentralized Oracle Network can be considered a cluster of independent blockchain oracles responsible for providing data to a blockchain. Oracles hold the accountability of delivering real-world data to smart contracts that functions securely and reliably on blockchain technology.
It wouldn’t be wrong to say that the Decentralized Oracles are the latest hot trend in crypto, strengthened by the advancement of Decentralized Finance. They tackle a critical problem which has existed for a very long time but has been recently solved in the world of blockchain and smart contracts.
The Decentralized Data Oracles allow on-chain smart contracts to get steadfast off-chain data, which is constantly essential for contract execution. As we know, blockchains and smart contracts are closed systems, where there are stringent processes for establishing connections to superficial data sources.
Each and every independent node or oracle in the decentralized oracle network independently regains data from an off-chain origin and fetches it on-chain.
In this article, we will be discussing the top 5 Decentralized Oracles that carry the potential to power the Web 3.0 boom.
5 Decentralized Oracles that are Potent to Excel in 3.0 Boom
QED Blockchain Oracle Network
Thriving in the blockchain space with a rugged economic model, QED is a decentralized Oracle Protocol establishing connections between multiple blockchains, smart contract platforms, and off-chain data sources. Being the successor of the Delphi Oracle, the QED Protocol holds the responsibility of employing a commit reveal mechanism.
The model is potent enough to promote Oracles to provide external collateral as a bond to their smart contract eliminating systemic risk. A process carried out post-execution clinches loss reimbursement without impacting the execution experience.
As a result, the QED Blockchain Oracle Network dynamically rebalances economic incentives and collateral to maximize global accuracy. In addition to this, it should be noted that it further facilitates a fair value-exchange environment allowing a rational marketplace for Oracles to ripen that will discover pricing from true supply and demand. The Oracle market can now rise exponentially and unleash the vast capabilities of decentralized economies. The QED token has a circulating supply of 400 million and a maximum supply of 1 billion.
Band Protocol (BAND)
The Band Protocol is the second most valuable decentralized data oracle project and is compatible with multiple blockchains. It holds the responsibility of providing and managing real-world data to smart contracts while enabling the condition of unassailable and steadfast feeds which are tamper-resistant and free from a single point of failure.
Aeternity, unlike the majority of the decentralized data oracle projects running as layer 2 applications on other blockchains, is a smart contracts blockchain protocol. What adds value to the project is the fact that it has a native integration of Oracles.
It should be emphasized that the native decentralized data oracle support is exceptionally significant and intriguing as it eliminates the need to trust any other source. Along with allowing off-chain contract executions, Aeternity is a highly scalable, sharding-enabled, and Turing complete blockchain.
Carrying the potential to support multiple mainstream blockchain protocols, the DOS Network is another layer 2 chain agnostic decentralized data oracle network. The DOS Network is responsible for establishing connections between DApps and smart contracts along with offering real-time data feeds backed by reliable data sources and high computation power.
Decentralized Information Asset (DIA)
Decentralized Information Asset, as the project description says, is an open-source, data and oracle platform for the DeFi ecosystem. It leverages the crypto-economic incentives to drive supply, share, and utilize transparent, crowd-verified price data and oracles on financial and digital assets.