1. Chainlink
Chainlink (LINK) is the largest blockchain oracle network in the industry, providing off-chain data to a vast array of blockchain ecosystems, including layer-1s, layer-2s, sidechains, and DApps running on smart contracts. Launched in 2019 as an Ethereum-based oracle by SmartContract, a software company based in San Francisco, Chainlink has become a trusted and widely-used platform in the blockchain industry.
One of Chainlink’s standout features is its ability to provide on-chain services to hundreds of blockchain projects and software firms, including popular platforms like Avalanche, Aave, Ampleforth, Compound, Swisscom, T-Systems, and the Associated Press. The platform has gained popularity due to its high security and reliability, which is essential for connecting smart contracts to real-world data and events.
Chainlink offers various services, including the Chainlink Verified Random Function (VRF), a protocol that generates a set of random values and cryptographic proof of those values, ensuring smart contracts have access to unpredictable outcomes. Additionally, Chainlink Automation (formerly Chainlink Keepers) helps smart contracts with maintenance tasks, such as harvesting, liquidating, rebase, and setup costs and risks when accessing off-chain markets.
In December 2021, Eric Schmidt, former CEO of Google, joined Chainlink as a strategic advisor for future projects, indicating the platform’s growing influence and potential for further expansion. Overall, Chainlink is a highly secure, multi-chain platform that provides real-time on-chain services to hundreds of blockchain projects and software firms, making it an essential tool for developers and organizations operating in the blockchain space.
2. Band Protocol
Band Protocol is beneficial to developers of dApps who require access to real-time data that is physically located. Its fully decentralized design, ease of integration, and strong financial incentives for data providers make it an ideal choice for those interested in incorporating high-quality data from outside of chains into their projects. As the decentralized application world expands, Band Protocol will have a significant role in driving the development of the next generation of decentralized apps. With Binance and Sequoia Capital’s support, Band Protocol has the resources to continue growing and developing its technology, this will ensure that it remains at the forefront of the decentralized oracle space.
Unlike other oracle solutions, Band Protocol is built to be completely decentralized, which decreases the likelihood of a single fault having a significant impact. The platform does this by utilizing a singular mechanism for staking that allows anyone to participate and receive rewards for their contribution to the network. This encourages data providers to maintain high-quality information and ensures the accuracy of the data for dApp developers.
Band Protocol is intended to be simple to incorporate into existing apps, this will allow developers to easily access real-world information with only a few lines of code. This simplicity greatly reduces the barrier to entry for developers who want to incorporate off-chain data into their projects, making Band Protocol a popular choice for many DeFi and gaming dApps.
3. API3
API3 is a blockchain-based initiative that aims to provide developers with decentralized APIs (dAPIs) for use in decentralized applications. What distinguishes API3 from other projects in the space is its emphasis on API developers as the driving force of the project. API providers are the entities that provide data and functionality to developers in their applications, as a result, their goals are similar to those of the larger API3 community.
To encourage API providers to participate in the ecosystem, API3 is creating a network of first-party oracles that are operated by the API providers themselves. This eliminates the necessity of expensive middlemen and decreases the vulnerability of the system. The oracles will be composed of Airnode, a serverless oracle node that is devoid of blockchain knowledge, maintenance, or responsibility for the API provider. The dAPIs will be inexpensive and safe from attacks by an intermediary layer of third parties.
The benefits of this strategy are numerous. Initially, it promotes a more secure and cost-effective system for both API providers and developers. By eliminating the need for a third party arbiter or oracle, the system is less susceptible to invasion and more cost-effective to operate. This facilitates the participation of API providers in the ecosystem; instead of having to have specialized knowledge or expertise in blockchain technology, they only need to have knowledge of how to use it.
4. iExec
iExec is like a boss when it comes to decentralized cloud computing, and they’ve just made it super easy to create a strong and safe decentralized oracle with their Proof of Contribution protocol (PoCo). Basically, the PoCo is like a game where a bunch of off-chain computation providers (Workers) are randomly picked from a big group and given the same job. Each worker does their thing and comes up with a result. The result with the most votes is the winner and is taken as the final computation result.
The iExec dOracle is the new way to create oracles that are reliable and secure. Oracles are like the eyes and ears of a lot of decentralized apps (dApps) because they give the dApp access to real-world information to do its thing.
Making an oracle with iExec is like super simple. All you need to do is create a dApp with the logic of the Oracle, which just means figuring out how to get the real-world data you need to run your dApp. Then, the iExec platform takes over and sends your dApp to a bunch of different Workers who do the computation. Once they’ve all got results, the PoCo algorithm kicks in and decides which result is the winner.
The iExec dOracle is also really strong and dependable. You can choose how much you want to trust the results, and the more you trust it, the more times the computation gets repeated to make sure it’s legit. Plus, there’s a reward system in place that makes sure it’s too expensive to try and cheat the system.
The iExec dOracle is a really cost-effective way to make oracles too. The more Workers join the platform, the cheaper it gets to make a dOracle. So you can trust it to be affordable and secure as well.