Oracle effectively solves information, Real-time and censorship-resistant data

The decentralized lending DeFi supported by Oracle runs on the Oracle oracle network and has many unique advantages. Oracle's oracle machine network is decentralized, which eliminates the cumbersomeness of centralized oracle machine review data and the possibility of hypocrisy and fraud in various processes, and effectively solves the real-time and anti-censorship of information and data .

Decentralized lending DeFi saves costs and reduces risks

Oracle blockchain insurance is essentially a financial product . Through blockchain insurance, it can guarantee the safety of user assets and the stability of income to the greatest extent. Oracle blockchain insurance uses intelligent and scientific guarantee methods to break users' worries and fears about blockchain investment, and creates a decentralized income system with the safest and most stable oracle technology. There are many differences between the decentralized lending of the high-performance aggregated cross-chain oracle protocol and traditional financial lending.

 The decentralized lending uses digital currency as collateral, and the lending agreement is represented by a smart contract, which does not require specific central trust. mechanism. However, the traditional lending process is more complicated, with high thresholds, many review conditions, and time-consuming. Therefore, the advantage of decentralized lending is that it can save costs, reduce risks, and use smart contracts to make the whole process open and transparent. When the loan cannot be repaid, the platform can directly sell the digital assets, making the whole process more convenient and quicker, while bringing users trust, speeding up the lending speed, and better meeting the borrowing needs of users.

 

Change the credibility of data sources and optimize the DeFi ecosystem

The rule of DeFi is that you need to pledge virtual currency, and then you can borrow other virtual currencies at 80% of its price based on its price. The full name of DeFi is decentralized finance, and its lending function is only a part of it. The mortgage rules of DeFi are actually similar to traditional loans. Traditional loans also require fixed assets such as your house and car as collateral, but the collateral of DeFi has become a virtual currency; and DeFi is also doing Optimization, after user A mortgages tokens, he can grant credit to user B without any mortgage, and user B can freely borrow money.

DeFi is a new blockchain segment that uses smart contracts to recreate traditional financial instruments, including loans, derivatives, exchanges, and reserve assets. In the DeFi model, the financial system is no longer monopolized by centralized private institutions, but uses an automatically running protocol to establish a trustless mechanism throughout the process, coordinate user interactions and decentralize the back-end architecture.

 Almost all DeFi applications are driven by data. Smart contracts specify code logic and define what operations the protocol will perform when certain input conditions are met. Smart contracts, written in Boolean logic (i.e. if X happens, do Y), are highly deterministic, so the validity of the final execution depends on the quality of the data input.

Oracle can make very positive changes in the credibility, privacy of data sources, and data computing costs, making the entire DeFi ecosystem more optimized. Most DeFi applications need to rely on data to execute smart contracts. Although in some cases only data on the chain is enough, this model itself has many limitations, because Dapp must meet a specific data format or can only use data on the native blockchain. The data. Most DeFi applications cannot function without connecting to external data and resources.

epilogue

The Oracle ecosystem creates an independent global economic system by investing in DeFi applications, providing anyone with the opportunity to be financially independent . At the same time, it eliminates the tediousness of reviewing data by centralized oracle machines and the possibility of hypocrisy in various processes, and effectively solves the real-time and anti-censorship of information and data .