Introducing Orakl Network(1): Klaytn and Oracle
TL;DR
- Blockchain networks require the use of oracles and this is bound to only increase over time. Orakl Network was created to solve the lack of oracles dedicated to the Klaytn network.
Intro
For the survival of societies and organizations, ‘Trust’ is an essential requirement. Through Blockchain technology, technical ‘Trust’ is enabled based on the inherent qualities of decentralization; transparency, immutability, and availability.
However, due to the deterministic nature of the blockchain, they all operate on separate networks, there are problems that arise with ‘trust’ when there is a necessity of interactions with external data. This is well-known as the ‘Oracle’ problem. On-chain data may be considered tamper-proof, but if the data source is inaccurate, it can cause significant issues. Invariably, this birthed intermediaries, such as, Oracles.
Particularly due to the growth of DeFi, among various other blockchain services, Oracles have received a lot of attention. However, they’ve evolved simply providing and verifying data feeds, evolving into models striving for node decentralization or simplifying data provision procedures by eliminating verification entities, such as, other first-party oracles.
It has been anticipated that considerable demand for Oracles will be concentrated in DeFi. Resulting in changes in the DeFi sector affecting Oracle demand. However, as Blockchain infrastructure expands outwards beyond finance, diverse data will be required, leading to an expansion of the influence of Oracles.
Orakl Network: Oracle on Klaytn
Compared to other chains, Klaytn network, has clear advantages in performance, in the likes of, transaction processing speed, and TPS. Although there was difficulty in onboarding DApps due to development environments and infrastructure in the past, the new 2023 Vision Map announced plans for trustless bridge, developer SDKs, improving compatibility of Web3 SDK, and more.
Demand for Blockchain Oracles on Klaytn network also has steadily increased. Of course, there are oracles operating on Klatyn, however, they’re not considered to be providing the required preemptive data feeds for the Klaytn ecosystem nor sufficient technical support.
Orakl Network discovered these pain points and began to imagine ways to meet the demand for services trying to onboard by focusing on the features or feeds required on Klaytn network. In the DeFi sector, the TVL of Klaytn ranks 14th in the entire ecosystem, occupying a significant value of approximately $200M. Orakl Network aims to meet this demand.
After the provision of sufficient functions and technical support for Klatyn, Orakl Network will expand coverage to other chains. In the early stages, focus will be put on being a specialized Oracle for Klaytn. Similarly to many GameFi projects choosing to deploy on Klaytn for its fast processing speed, Orakl Network will provide optimized infrastructure to maximize its technical advantages for Klaytn services.
In addition, Orakl Network limit the payment methods to $KLAY. Some of the fees received will be burned, and this will contribute to the deflation of Tokenomics of $KLAY as more services use Orakl Network. The burning rate and cycle will be announced through a separate notice before the official launch later.
The Future of Oracles
The combination of Blockchain accessibility and proper Oracle performance, will lead to a wider range of possible Blockchain applications. Through their current purpose, Oracles are mainly used to retrieve price information, but this isn’t the full utilization of their functional capabilities.
- Prediction Market — Oracles can eliminate information asymmetry and ensure transparency and fairness of information, maintaining trust among participants in prediction markets based on voting, matches, and games.
- AI Investment Service — If data collected and analyzed through machine learning is provided through Oracles, transparency and reliability of information are guaranteed, allowing for better automated investment decisions.
- Derivatives Market — If Oracles provide data on the derivatives market that needs to be updated in real-time, a more reliable trading platform can be created through Blockchain.
- Game and Point System — Oracles can provide user and character stats, win rates, etc., to create various membership systems using dynamic rewards and NFT-based badges.
- City Infrastructure — If oracles provide a database that can handle large-scale data, traffic congestion can be predicted, allowing for improvements in routes or adjustment of operation times.
- STO (Security Token Offering) — If all the information necessary for tokenization of the target and the tokenization process is provided through Oracles, a more reliable STO becomes possible, which can also be applied to the secondary market.
Ecosystem = Technology + Governance + Community
There are more determining factors to a Blockchain network’s potential to thrive, beyond just Performance and Infrastructure, it’s imperative for their to be cooperation between Governance and Community within its ecosystem.
Previously, Klatyn has had issues relating to centralization in its Governance. This has called for the necessity for infrastructure that brings trust and fairness, such as, Oracles. Orakl Network will provide that necessary support for not only Governance and Community, but also through the potential value of Oracles supporting growth of the entire ecosystem.
In this article, we have discussed the role and need of Oracles on Klaytn network. In the next article, we will look into the development and release plans, as well as the basic functions of Orakl Network.
If you need any support to use Orakl Network or would like to join the team, please contact us at business@orakl.network
