Oracles, according to Cryptopedia, are smart contract protocols in the blockchain industry for interacting with external data. Smart contracts are basically computer programs that run inside the blockchain and automate a set of transactions when certain conditions are met. Thus, smart contracts contribute to the complete decentralization of the blockchain industry by allowing transactions to take place automatically and without third party interference.
Despite the appeal of the concept of blockchain as a stand-alone, permissionless, and untrusted system, it would not have real-world applications if there was no way to use external data off-chain, which is where oracles come into play.
According to a recent report, the blockchain industry has more than 77 million active users, demonstrating continuous innovation in the space, even though it is only a decade old.
As oracles connect the world of blockchain with the outside world, there is a need to keep pace with the continuous innovation in the blockchain industry. However, Oracle has struggled with centralized control, where some protocols are controlled by a single entity and act as the single source of data for smart contracts. If blockchain technology is to achieve its primary goal of decentralization, then Oracle networks must also be decentralized to provide smart contracts with an increased level of security and transparency.
The importance of decentralized protocols such as QED
One of the important issues in introducing Oracle to the blockchain is that it goes against the spirit of blockchain technology, which is mistrust. One way to address this is to ensure that oracles connected to the blockchain are decentralized and not governed by a single entity.
QED is a decentralized oracle protocol with a powerful economic model that connects blockchains, smart contract platforms, and off-chain data resources. QED is a decentralized oracle that aims to achieve distrust by distributing data points between multiple entities and modeling the blockchain network.
DelphiOracle, the underlying software for QED, is the most widely used protocol on WAX.io, the world’s most trusted blockchain platform for NFTs, dApps, and video games. For more than four years, Delphi oracle has served as a multilateral source of truth, providing smart contracts with real-time prices for asset pairs on different blockchain networks. DelphiOracle has already established itself in the blockchain industry, and QED is built upon it. The purpose of introducing QED is to solve the problems inherent in the current paradigms of oracles and blockchain systems.
The economic model of QED
The QED economic model distinguishes it from existing Oracle protocols because it focuses on both the technology and business aspects, both of which are important when it comes to delivering and aggregating real-world data for smart contracts. Here are some characteristics of the QED economic model:
- asylum, sanctuary: QED is customer focused as it protects users by providing a referral mechanism. Customers will eventually be able to use QED’s external guarantee to address compensation for losses that may have occurred due to systemic risks.
- Health: To maximize real-time accuracy, an automated evaluation and reliability system is implemented to phase out poorly performing articles by increasing customization to a more capital-efficient oracle.
- decentralization: QED used distributed ledger technology as an operating method, which promotes decentralization and removes the lingering problem of centralization in Oracle protocols. The original symbol “$QED” also represents an economic limitation on QED.
QED is a breath of fresh air for Oracle’s protocols. It aspires to lead the next generation of Oracle protocols that provide services for smart contracts in a fully open, transparent and decentralized manner. To make the most of its innovative economic model, QED intends to integrate with public blockchains. Moreover, to enhance scalability and interoperability, the QED protocol is also powered by the UX network. The QED Economic Model has been implemented to address issues related to the commercial viability of existing Oracle protocols, and will be a model for the next generation of Oracle protocols soon.