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QED Aims To Make Decentralized Oracle Product Viable and Trustworthy

QED

According to IBM, Smart contracts are programs stored on a blockchain that runs when predetermined conditions are met. The usage of smart contracts in decentralized products aided in the elimination of intermediaries and third-party transactional entities. Smart contracts will help automate the execution of an agreement so that everyone involved in the transaction may be confident in the outcome without the intervention of a third party. In essence, they aid in streamlining processes, resulting in a more seamless and transparent experience.

Blockchain technology is characterized by complete decentralization, trustlessness, and transparency. There must be no outside influence or intermediary in the execution of any blockchain contract. Adding a third party to a blockchain transaction invalidates the decentralized technology’s original premise and purpose. Despite the efficiency of smart contracts, external real-time off-chain data is still required to carry out the contracts. The need for real-time off-chain data is where Oracles come in; they help smart contracts evaluate real-time market data and validate off-chain data input.

Oracles are key tools designed to aid smart contracts in ensuring that transactions are executed fairly. The issue with the present Oracle architecture is that it undermines the entire concept of a “trustless” system. Oracles have significant authority as a result of the sensitive market information they provide to smart contracts. Several projects have tried and failed to meet the challenge of developing a viable and trustworthy Oracle solution.

QED is a decentralized Oracle protocol and aggregator that aims to make Oracles reliable and trustworthy through its unique model and approach. QED’s goal is to create a “trustless” system by gathering data points from various sources and therefore decentralizing Oracles. The QED ecosystem is based on the DelphiOracle software, the most widely used Oracle on WAX-io, with over 1400 actions each hour. DelphiOracle has been in business for nearly four years and has withstood the ups and downs of the blockchain and DeFi industry.

The QED Model

The QED ecosystem distributed QED tokens to the protocol’s oracles, allowing them to administer a decentralized governance system and own a share of the platform. QED collects real-time market data from various sources to provide credible information on the platform. The protocol is designed in such a way that oracles can only determine the costs required to carry out a contract. The goal of the QED protocol’s full decentralization is to eradicate collusion in the ecosystem. The protocol provides dynamic incentives to oracles for reliable data provision to improve market information quality. The QED model was developed to enable a tamper-proof oracle system that offers reliable and up-to-date market data.

Closing Thoughts

The 16th of March, 2020, will be a day that the DeFi community will never forget. Several price fluctuations happened that day, leading some blockchain systems to crash and oracles to maintain inaccurate prices. Due to a system glitch, the popular MakerDAO oracle also displayed incorrect prices for several hours. Despite this, the QED base software, DelphiOracle, maintained accurate prices during the ‘crash.’ DelphiOracle’s ability to maintain correct prices indicates that QED has built its protocol on a solid, secure, and well-established technology. The QED protocol uses a fast and scalable UX Network as the core for its innovative protocol. QED appears to have positioned itself as a decentralized oracle protocol that provides reliable and trustworthy market data.

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