FluxProtocol is an oracle that changes the rules.
Good day to all! Today I want to share with you a great new project called FluxPrtotocol. So I’ll start with the basics of the Flux protocol, an open source oracle that aims to cover all the leading blockchains. For those who do not know what an oracle is, I will tell you now. In fact, it is an agent that interacts with the blockchain and transmits the necessary data from it to you. For example, you need to find out what the trading volume and all the transactions made on any decentralized exchange, what can you do?
Option number 1 — you can track all transactions and choose from them those that are interesting to you, but this is a long way that will not lead you to the desired goal.
Option 2-contact the oracle and ask him for everything you need, you can get all the trades on UniSwap for the specified currency pair for the specified time period. You can track all major transactions in the ethereum network that have been sent to exchange wallets and much more.
Other uses of the oracle, such as bids, are also possible. We can make a bet in which the condition and the outcome of the event will be described. For example, we create an event of a football match with three outcomes, team A will win, team B will win or a draw, after which we deposit money for this bet to the smart contract, and when the match is over, the oracle will request data from a reliable source and transfer it to the smart contract, which in turn transfers its winnings to the winner. That’s what oracles are for.
There is another option for using oracles — this is the interaction of blockchains. Different blockchains are written in different languages. For example, smart contracts in Ethereum are written in Solidity and Sordano uses Haskell, and in order for one blockchain to take data from another, they need a translator that can serve as an oracle.
Now that we have figured out what an oracle is, let’s move on to our project. How does it differ from already known oracles such as ChainLink, Bandprtocol, API3 and Tellor?
To begin with, Chainlink, being a decentralized network, is managed centrally, and the aggregation of data from several sources leads to data redundancy.
Band Protocol-works in the Coamos network, I can note one of its disadvantages, it imposes additional work on the validators to protect the blockchain by creating block checks, which in turn leads to an increase in the time required for synchronization as the network grows, and also increases the hardware requirement.
API3-works as a data provider, allowing third-party oracles to connect to their network. Token holders can host their networks, but they cannot participate in the binding of nodes, this minimizes their participation in the network.
Teller — mainly works on the Ethereum network, but after upgrading to version 2.0, it began to support cross-chain interaction, due to the fact that the Teller network began to become more cumbersome as a result of mining, its requests became very expensive, this led the network to switch to staking, but at the same time the network retained its features, including delegation.
In fact, all oracles perform the same tasks, but FluxProtocol is a platform that does not depend on blockchains, instead of following the rest of the oracles, FluxProtocol allows users to connect to their network and users can use the protocol to support arbitrary requests. FluxProtocol is optimized for scaling to support an almost infinite range of integrations. It has low transaction fees, fast and secure data resolution, resolutions supported by economic guarantors. But the most important thing is the support of all existing networks!
Who are the Flux Protocol investors
Most recently, FluxProtocol closed the seed round of investment and raised$ 10.3 million. First of all, I want to mention Coinbase Ventures, CoinFund and the co-founder of NEAR prtotocol.
Working PULSE application
Despite the fact that the project has not yet entered the market, it has a working application called PULSE, which is already used by competitors oracles — Augur and Gnosis.
What to expect from the project?
I will voice not only my opinion, but also the opinion of the largest crypto fund Multicoin, the application and data market is developing rapidly and will only increase in the future, so we should bet on similar projects that will process this data. At the moment, it is not always possible to invest in such projects due to the large number of participants, so you need to monitor the projects and be active.