Brief introduction of NEST Oracle
NEST price Oracle is a Layer 2 protocol network based on Ethereum network, which is a decentralized Oracle system.
NEST Oracle defines and implements a new scheme to generate price facts on the blockchain. Based on the market game theory, the price facts of the off chain market are generated synchronously on the chain by the way of miners’ quotation. Combined with the mining mechanism of NEST quotation, the miners are encouraged to become a set of logical closed-loop distributed quotation system, which perfectly generates the off chain price facts on the chain and forms the NEST price Oracle.
Features of NEST Oracle
The essence of the orlcle price up chain is not to “Upload” price information to the chain, but to form (generate) price facts on the chain; whether the price information is uploaded centrally or in a decentralized way, it means that the off chain price fact is generated before the chain. The real Oracle system should make sure that the off chain price facts are generated on the chain synchronously.
The unique feature of NEST Oracle is that it directly forms a price fact on the chain, while other Oracle systems only upload a price fact to the chain, which is an essential difference.
In addition, the cost and credit scale of the price formation of the prophecy machine should be able to support the DeFi far beyond this scale. Every piece of data generated by the NEST Oracle is provided by the quoted miners with real gold and silver, and each quotation data must be verified by the whole market before being employed by the system.
Data on NEST Oracle chain
NEST Oracle quotation contract address:
In order to more intuitively and accurately analyze the timeliness of data on the chain of NEST Oracle, we collected and sorted out the price data generated by NEST oracle on the chain in the last 24 hours (2020.04.15 12:00 ~ 2020.04.16 12:00), as well as the transaction data of the Huobi platform at the corresponding time point. Put the two together to make a most direct comparison chart of the fit between the price data of NEST Oracle and the data of trading market
Observing the trend of the data in the above figure, we can see that the price data generated by NEST oracle on the chain is highly consistent with the price trend of the trading market of the Huobi platform. In order to further calculate the difference between the specific data, we conducted statistical analysis on the chain data from April 15, 2020 to 12:00, April 16, 2020
In these 24 hours, we collected and sorted out 250 price data of NEST Oracle chain; after calculation, the average deviation ratio of price data on NEST Oracle chain and that of Huobi platform is 1.675 ‰
Through the STDEVP algorithm in Excel, we get the following conclusions:
The standard deviation ratio is 1.759 ‰
If the transaction data of the Huobi platform is regarded as the market fair price data, the “standard deviation” of the deviation ratio between the ETH / usdt price data generated by NEST prediction machine and the market fair price data is only 1.759% (Note: STD dev, standard deviation) – a statistical term. A measure of the degree of dispersion of data distribution. It is used to measure the degree to which data values deviate from the arithmetic mean. The smaller the standard deviation, the less the values deviate from the average and vice versa.)
According to the current chain quotation data of NEST Oracle, as shown in the figure above: we can see that the quotation block interval of NEST Oracle in recent hours is about 28 blocks (Note: Ethereum generates a new block in 13 seconds, and the quotation is about once every 6 minutes).
According to such a price update frequency and price deviation ratio, NEST price predictor should be the most time effective decentralized Oracle scheme among all the current Oracle schemes.
The importance of decentralized Oracle
As the most important infrastructure in Web3.0 era, decentralized Oracle solves the industry problem of price shortage on the chain, and it will play a decisive role in promoting the development of DeFi!
As an innovative player of the seeker track, NEST price Oracle will bring more effective information to the world on the chain, help the development of DeFi and create infinite possibilities!