Today, we will know the basic knowledge about Native Oracle on Solana Blockchain that top-tier investors. We will know what it is and the mechanism of the Pyth Network.
The Pyth protocol is designed to incentivize participants to continuously publish price updates for various products (such as BTC/USD). Each crypto-asset has a price feed so that Pyth Network will provide this price to someone’s need that continuously updates with its current price and a confidence interval representing the estimated uncertainty of the price. For example, the current BTC/USD feed may say the price is $65000 ± $50. The feed for each product is published on-chain, where it is read by consumers, who may be either blockchain-enabled programs or off-chain applications. An on-chain program produces the price feed for each product by aggregating the price feeds of individual publishers. The protocol is designed to attract publishers who are first-party data providers with the ability to source high-quality, timely pricing information.
In addition to publishing these price feeds, the Pyth protocol will allow consumers to optionally pay data fees. In exchange for these fees, consumers may receive a payout from delegators if the oracle price is inaccurate. Data fees enable projects that use the protocol’s prices to hedge against oracle inaccuracies on behalf of their users. A share of data fees goes to publishers, which enables them to monetize their data.
Overview of the Pyth protocol depicting the participants (purple ovals) and their interactions with various mechanisms (purple circles). See text for more details on each mechanism
Pyth Network will have three different sets of participants:
Note that a single actor may have multiple roles in the protocol; for example, publishers may simultaneously be delegators.
These participants will interact via four mechanisms. All of these mechanisms will be implemented on-chain:
A critical challenge is designing these mechanisms to be robust to various forms of adversarial behaviour. Three specific attacks to consider are:
The mechanisms introduced above will depend on two core functions of the protocol. First, parts of the Pyth protocol will run in epochs. An epoch is several Solana slots corresponding to one week of real-time. Second, the protocol will require users to stake PYTH tokens to participate in some activities. Staking locks the user’s tokens immediately and makes them available for downstream activities at the beginning of the next epoch. At any point, stakers can request to unstake their tokens. Upon unstacking, the tokens will remain locked in the contract for the remainder of the then-current and subsequent epoch. This staking design guarantees that the quantity of PYTH tokens staked toward any given activity remains constant within an epoch. Additional mechanisms such as stake pools may enable stakers to delegate their staked tokens to another user. However, these mechanisms are not core to the protocol (and could be built as entirely separate programs), so they are not described in this whitepaper
Increase data set coverage.
Increase data providers.
Increase integrations.
Increase supported Layer 1s.
Launch staking, rewards, & curation functionality.
You can update the price of PYTH Token on Coincu.com right at: CLICK HERE
Allocation of locked and unlocked PYTH tokens. Locked tokens unlock monthly over 7 years with an initial 1-year cliff.
PYTH tokens can use:
Hopefully, through the above article, you have had an overview of Pyth Network. What do you think is the next direction of Pyth Network? What project overview do you want to learn about next? Please comment below the article to let me know!
Website: https://pyth.network/
Whitepaper: https://pyth.network/whitepaper.pdf
Twitter: https://twitter.com/PythNetwork
Telegram: https://t.me/Pyth_Network
Discord: https://t.co/Rbl4SJPaDK
If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Marcus
Coincu Ventures
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