The term “Web3or Web 3.0 is becoming increasingly popular, especially among tech enthusiasts and fans of blockchain and crypto technology. It will be the future of the Internet.
The Web 3.0 revolution is well underway and will bring a plethora of new applications to a decentralized blockchain framework. Blockchain technology and cryptocurrency are inextricably linked to Web 3.0. The defining characteristic of Web 3.0 is decentralization, which gives content creators greater control. Blockchain allows Web 3.0 to be more transparent and secure, while cryptocurrency eliminates intermediaries such as banks.
However, the infrastructure for large-scale business applications on the blockchain is still lacking among major oracles such as Chainlink. These services provide data to smart contracts on the blockchain, but they are not yet ready for prime time. This poses a major risk for businesses that want to adopt Web 3.0 applications. The absence of robust risk mitigation mechanisms could lead to significant losses for companies that are not yet prepared.
The answer is to use smart contracts that are prepared to deal with the significant business risks associated with Web 3.0 applications. People can avoid the dangers of today’s oracle landscape by using smart contracts expressly tailored for large business applications. There is a significant difference between small projects and large enterprises as they need different levels of security. Enterprise applications involve more money at stake, requiring a higher degree of protection.
QED is a good example of a smart contract network equipped to handle significant business risk. QED is a decentralized oracle protocol that runs on the DelphiOracle platform. It connects many blockchains, off-chain data sources, and smart contract platforms. QED is secure, accurate, robust, and fully decentralized, making it ideal for large-scale commercial applications.
Decentralized Oracles to Drive DeFi Adoption
QED network is an example of a decentralized Oracle protocol with a strong business model that connects multiple blockchains, smart contract platforms, and off-chain data sources. It seeks to solve the problems presented above in various ways. For starters, the protocol is backed by external guarantees and uses an economic incentive system to improve yields over time, thereby improving the health and symbolic value of the ecosystem. As such, it is designed to avoid common pitfalls associated with other Oracle solutions.
QED also serves to minimize underperforming oracles by passing charges to oracles with excellent historical accuracy. This way, only the most trusted oracles take advantage of the network. This creates an environment in which all oracles have a stake in maintaining high quality data.
The QED system token eliminates the danger of collusion and ensures that there is a decentralized unit of account for the system. This protects the network from any central control point and forces all oracles to compete with each other.
Other decentralized oracles are vying for position in this space including Band Protocol, DIA, API3, DOS and many more.
The Band Protocol is another great oracle to watch out for. This decentralized oracle platform provides real-world data to dApps and smart contracts on Ethereum and Cosmos blockchains, using a distributed oracle network. It incentivizes its validators in BAND tokens to obtain external data on demand, participate in consensus, and generate new blocks.
Decentralized information capital (IAD) is a platform that allows users to publish, search, verify and exchange important information. It is based in Switzerland and is open-source. This oracle platform aims to bridge the gap between blockchain and the natural world by providing accurate, real-time data that powers the Challenge ecosystem.
The oracle DIA network, like the tape protocol, uses cryptographic incentives to encourage community participation. This open-source data feed publishing platform also encourages transparency by making its data feeds publicly available for auditing if necessary. DIA holds a lot of promise as the future massive expansion of the DeFi ecosystem takes hold.