“Decentralized oracle” is the new buzz phrase in the world of crypto. According to Coindesk, big names in the IDO space have invested in this infrastructure, like Lithium Finance, which raised $5 million for a decentralized oracle to track private assets. The main reason behind these advancements in the oracle world is unmistakably the DeFi boom. Decentralized applications made on smart contracts need real-world data feeds that smart contracts cannot access individually due to blockchain limitations. Oracles aim to eliminate this problem by linking the on-chain world with off-chain data sources that boost DeFi application benefits. Blockchain oracles have risen in importance and also soared in the market for oracle-based cryptocurrency tokens.
Top 5 Oracle Projects
Right now, there are several oracle projects in the pipeline, but here we will be talking about the top five projects attracting the most attention.
Oraichain is a data oracle platform that aggregates and unites Artificial Intelligence APIs to smart contracts and general applications. Oraichain is the world’s first AI oracle and ecosystem for blockchains. Oraichain is a public blockchain that enables users to utilize various data types in both regular and decentralized applications. Smart contracts, along with users, can further request raw and processed data safely from AI APIs via Oraichain. AI Oracle from Oraichain is the gateway to consolidate machine learning applications into smart contracts in a secured and decentralized manner. Signaling the conclusion of the ‘read-only’ era, blockchain can ultimately open an endless scope of applications Oraichain executes an innovative mechanism with blockchain technology for incentivizing collaboration by extending royalties to contributors. This produces a decentralized environment to unite the workforce, encouraging advanced and more flexible Artificial Intelligence solutions.
Chainlink, launched in 2017, is among the pioneers of blockchain oracles today, particularly decentralized oracles. The project was established by SmartContract and the oracle system is famous for giving authentic, tamper-proof, and verifiable data to blockchain smart contracts. Chainlink also has an important role in the fast-evolving DeFi ecosystem and presently retains partnerships with more than 200 leading teams and firms working in the DeFi world.
Band Protocol is supported by esteemed crypto exchange Binance and VC company Sequoia Capital. Such elite support clearly indicates its promising foundation and advanced oracle system.
Among the newest players in the oracle market, Bridge Oracle was started in the second half of 2020. Introduced on the TRON blockchain as their first-ever dedicated public oracle, Bridge will enable mass participation of small businesses—who otherwise could not afford expensive dedicated oracles—in the blockchain world.
According to the project itself, “DIA is an open-source, data and oracle platform for the DeFi ecosystem. DIA optimises crypto-economic reasons to stimulate stock, distribute and use clear, crowd-verified cost information and oracles on commercial and digital assets.”The service is easily accessible, verified by a community of stakeholders, and extremely flexible. DIA is an ecosystem for public financial information in a smart contract environment.
Currently, leading oracle-based cryptocurrencies such as Band Protocol and Chainlink are out in front in terms of market cap. But the need for oracles in financial industries will fuel further innovation, prompting newcomers like DIA and Oraichain to capture market share and onboard enterprises in their droves