Revolutionizing DeFi: RedStone Oracles Unleashing the Power of Web 3.0 Data
Introduction
In the fast-paced world of decentralized finance (DeFi), the need for reliable and diverse data has never been more crucial. In 2021, the DeFi ecosystem witnessed exponential growth, bringing new protocols into the limelight. However, the limitations of traditional oracles, often plagued by centralization and security concerns, hindered the full potential of Web 3.0. Enter RedStone Oracles – a groundbreaking solution that aims to transform the landscape of decentralized data delivery. In this article, we delve into the features and products offered by RedStone, addressing the challenges faced by blockchain projects and introducing innovative solutions.
The Oracle Problem
Oracles, essentially middleware facilitating communication between blockchains and off-chain systems, play a pivotal role in the execution of smart contracts. Traditional oracles, however, present a significant challenge known as the Oracle Problem. The decentralized nature of blockchains restricts direct communication with external systems, making it difficult to obtain diverse and synchronized data types. Centralized or third-party oracles compromise the core values of decentralization, leading to potential security risks and lack of consensus among nodes.
Early Attempts and Challenges
During the early days of blockchain, a lack of standards resulted in a plethora of proprietary oracle solutions. However, vulnerabilities in homemade oracles led to notable hacks, emphasizing the need for professional solutions. Initial attempts, such as the two-phase approach pioneered by Oraclize and Chainlink, faced usability challenges and lacked atomic data fetching capabilities, hindering interoperability.
Today's State of Play
Current approaches involve persisting data directly on-chain to address the Oracle Problem. However, the high maintenance costs associated with on-chain storage, particularly on Ethereum, pose significant challenges. Ethereum's design favors low-latency computation, penalizing input/output operations like storage. As a result, only a limited number of tokens can be supported, excluding less popular tokens from oracle support. Despite scalability and cost obstacles, the Oracle Market Cap reached $14 billion in January 2022, highlighting the growing demand for diverse and reliable data.
Introducing RedStone Oracles
RedStone emerges as a game-changer, aiming to overcome the challenges faced by blockchain projects with flexible and affordable oracle solutions. Let's explore the key features that set RedStone apart:
Affordable Storage with Arweave: RedStone leverages Arweave, a next-gen blockchain storage solution, drastically reducing costs compared to chains like Ethereum. Storing 1GB on Arweave costs $35, offering low operating costs for processing more data with higher update frequency.
On-Demand Fetching: RedStone introduces a novel approach of storing data on Arweave while a network of nodes and partners makes it available to DeFi projects in a decentralized public cache. The EVM-Connector injects this data into the destination chain only when needed, ensuring efficiency and reducing transaction costs.
Flexible Data Streams: RedStone's capacity to process more data opens opportunities for diverse data providers to enter the blockchain ecosystem. Customizable data feeds cater to the specific needs of DeFi protocols, ranging from lending pools to synthetic DEX and margin-trading protocols.
Data Integrity: RedStone ensures data integrity by allowing multiple data providers, who stake RedStone tokens as collateral, ensuring high-quality and reliable data. The ArGue protocol, based on Schelling point consensus, governs dispute resolution, providing transparency and accountability.
Cross-Chain Oracle Solutions: RedStone's data, cryptographically signed by providers, can be verified on any chain supporting basic cryptographic primitives. While initially focused on EVM-compatible chains, RedStone plans to become chain-agnostic, offering solutions across all major blockchains.
What RedStone is Doing Now
RedStone has already made significant strides, fetching data for over 1000 assets, including cryptocurrencies, stocks, currencies, and commodities. The WebApp showcases data served by providers aggregating information from more than 50 external sources. RedStone's focus on optimizing EVM-Connector technology demonstrates its commitment to providing reliable and efficient data to the growing DeFi industry.
Integration Models: RedStone Core, Classic and X
RedStone offers three integration models catering to different preferences and scenarios:
1. Core Model: Fetching prices on-demand, automatically appended to user transactions, battle-tested and protecting over $100M TVL of DeFi protocols.
2. Classic Model: Pushing feeds on-chain, maintaining a modular design that provides flexibility in updating prices according to the protocol's needs.
3. RedStone X: Extreme protection against front-running, implementing a deferred execution pattern for super-efficient DeFi projects, mitigating arbitrage attempts.
Conclusion
RedStone Oracles emerges as a beacon of innovation in the DeFi space, addressing the limitations of traditional oracles and providing flexible, affordable, and secure solutions. As the demand for diverse and reliable data continues to grow, RedStone's commitment to pushing the boundaries of decentralized data delivery positions it as a key player in the evolving landscape of Web 3.0.
Unleash Your Potential: The RedStone Miners Ambassador Program
RedStone Miners Ambassador Program is a unique opportunity for passionate individuals to shape the future of RedStone and join the crypto community. Whether you're a crypto enthusiast, developer, trader, writer, or designer, this program invites you to become a Miner.
As a Miner, users'll engage in various activities, from content creation to community management, contributing to RedStone's growth and earning exclusive rewards such as early access, RedStone Gems, limited edition merchandise, NFTs, and more. RedStone is seeking dynamic individuals to champion their cause, offering a straightforward joining process through the RedStone Discord.
The program consists of five tiers, starting with Ore Diggers and progressing to Mine Kings based on engagement and contributions. The journey on Zealy involves completing tasks and earning points to ascend from Ore Digger to Deep Miner. Consistent activity is crucial for maintaining ranks, with higher ranks requiring three consecutive months of scoring points to avoid demotion.
Hop in 👉 Zealy RedStone Miners Program