Decentralized oracles are still much talked about in the cryptosphere. The rise of Decentralized Finance brought them into the mainstream. Despite the current crypto crash, Oracle crypto projects are still a hot investment vehicle. In this article we look at the top 5 oracle crypto projects.
Oracle crypto projects solve real problems of blockchain and smart contracts. They allow on-chain smart contracts to get reliable off-chain data, which is often necessary for contract execution. An oracle obtains reliable data from multiple independent sources, filters it for inaccuracies, and transmits it. It also ensures that data is not tampered with while it is being delivered where it is required.
Why Are Crypto Oracles Important?
Smart contracts are one of the basic building blocks of the blockchain world. Contrary to popular belief, they are actually not that smart. They enable complex logic executions once implemented, but they do not have default access to real data, which is needed to make decisions, such as temperature, price of an asset, etc.
This on-chain off-chain data communication is needed to enable complex decision making, and has use cases in finance, securities, exchange services, smart wallets, recovery, predictions, gaming, gambling, etc… Here are the top 5 decentralized oracles which solves this issue.
5. Decentralized Information Asset (DIA) – Market cap $78.2 million
We kick off our top 5 oracles with Decentralized Information Asset or DIA. According to the project itself, DIA is an open source, data and oracle platform for the DeFi ecosystem. DIA leverages crypto-economic incentives to drive supply, share and use transparent, crowd-verified price data and oracles on financial and digital assets.
The service is freely accessible, validated by a community of stakeholders and highly scalable. DIA Labs manages this project. According to the official documentation, DIA is an ecosystem for open financial data in a financial smart contract ecosystem.
The crypto DIA currently has a token price of $0.4. The current crypto market crash took its toll on this token, causing it to crash alongside the entire cryptocurrency market.
4. DOS Network (DOS) – Market cap $3.6 million
The DOS network is another layer 2 chain agnostic decentralized data oracles network, which can support various mainstream blockchain protocols. It also provides real-time data feeds, connects DApps and smart contracts with reliable data sources and high computing power.
The DOS network is extremely fast, completing off-chain processing in less than 1 second. However, DOS is often limited by the performance of the base layer 1 protocol.
The main use cases of the token are staking and fees. Node operators must harness DOS before starting to provide data, and oracle service requesters must pay service providers in DOS tokens. Additionally, the DOS token is used for management.
3. Aeternity (AE) – Market cap $39.3 million
Unlike most decentralized data oracle projects that run as layer 2 applications on other blockchains, Aeternity is a blockchain protocol for smart contracts with native integration of oracles. It is a Turing complete, highly scalable and sharding enabled blockchain. Aeternity allows off-chain contract executions.
This native decentralized data oracle support is particularly important and interesting because it eliminates the need to trust any other source. No other mainstream blockchain protocol currently has this functionality.
2. Band Protocol (BAND) – Market cap $169.1 million
The closest competitor to Chainlink and the second most valuable decentralized data oracle project is Band Protocol. BAND is also a cross-chain (compatible with multiple blockchains) data oracle project that provides and manages real data to smart contracts.
This enables the provision of secure and reliable feed, which is tamper resistant and does not have a single point of failure. Organizations such as VC firm Sequoia Capital and the cryptocurrency exchange Binance support this project.
1. Chainlink (LINK) – Market cap $7.6 billion
The leading decentralized data oracles network by far is Chainlink. This crypto project connects smart contracts with information about off-chain events. The oracles are secure, resistant to manipulation, and therefore reliable. The Chainlink project is at the forefront of decentralized data oracle innovation and is constantly introducing new data pairs/services to advance the field. Its value accretion ensures the node operators, since it has to pay in LINK and most crypto-based services need reliable/secure data for their smart contracts, for effective and stable operation.
It is an important component of Decentralized Finance (DeFi), and has partnerships with more than 200 major companies and teams. The Chainlink data oracles integrate with almost all Ethereum-based DeFi projects, and have benefited from the recent DeFi boom. The platform’s native LINK token has performed admirably, year to date, despite the economic crisis and the stagnant prices of most top crypto assets.
>> Want more news and price analysis? Join CryptoTicker on Twitter <
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
UnCirculars – Cutting through the noise, delivering unbiased crypto news
