/biz/ - Business & Finance

As with all consensus algorithms, it is susceptible to dishonest actors. Dishonest actors, or a group of them, can collude to skew the data, or even control it completely, to benefit themselves. See the recent example on Compound, where it appears that malicious Oracles skewed the data and caused $100m of liquidations due to a poor data feed (where oracles returned a DAI price of $1.30).

The issue with third-party Oracles is - there will always come a time where node operators will be heavily incentivized to misreport data for their own private gain. In other words, they can make A LOT more money by providing incorrect data and benefiting from the fall out.

Especially in the case of data feeds into large Defi projects. This isn't the case with API3, as there is no middle-man that could be incentivised to lie or cheat. Data source is connected directly to data requestor. Crypto was designed to eliminate trusted-third parties. This is the next logical step for data feeds into smart contracts.

OP why you comparing to API3? Is API3 the new standard?

I now buy API3 thanks to this thred.

Seed investors just extended lockup from 2 years to 3 years.

DCG is a MAJOR shareholder in Coinbase.

Pure Alpha play. Don't be a simp and miss out.