Addressing The Limitations of Decentralized Oracles
The role of decentralized oracles in the invention of blockchain technology and smart contracts cannot be overemphasized. They are responsible for feeding data to these two technologies as they cannot obtain it themselves. However, these data aren’t always accurate. There was no means of validating their trustworthiness until decentralized oracles were introduced.
In the decentralized oracle sector, Ethereum-based decentralized blockchain oracle network Chainlink is considered a leader. It is designed to speed up the transport of tamper-proof data from off-chain sources to smart contacts on the blockchain. Although it proposes the expansion of smart contracts by directly connecting real-world data and off-chain computation, it has a couple of apparent downsides. It is always good to know if there are worthy alternatives out there. That’s why in this article we are comparing Chainlink against QED oracle based on their features.
QED oracle was designed as an aggregator with decentralized infrastructure. It has a large economic model connecting various blockchains, smart contract platforms, and off-chain data sources.
Chainlink has a 120-second average refresh rate. Many Decentralized Applications suffer as a result of this, as they cannot implement services that need lower data finality or quicker refresh rates.
QED can deliver data refresh rates of 0.5 seconds. This paves the way for more demanding financial market applications to emerge, as well as more automated high-frequency applications.
Even though Chainlink is decentralized inside its network, the execution phase still requires the participation of trusted third-party parties. This is a major flaw in its decentralization argument, and as a result, the cost benefits of using smart contract technology are diminished.
QED, on the other hand, is entirely decentralized. There is no need for middlemen during the execution phase of data distribution. It manages post-execution restitution claims, meaning that the settlement procedure has no impact on the balance sheet benefits of smart contract technology.
Chainlink ceased sending data during the Crypto Black Thursday incident. This means that the oracle protocol may stop providing reliable on-chain data feeds under volatile market situations.
QED was the only oracle program that remained in service throughout the Crypto Black Thursday incident was the QED alpha version, which is the DelphiOracle software. This already indicates that the program has a high level of resiliency.
Every market has its spectacular and even disastrous days. Over the last few years, digital assets worth about $1.4 billion has been stolen, mostly through Oracle and Bridge attacks. A significant amount of these losses took place on Chainlink.
The DelphiOracle program, QED’s alpha version, has given over 25 million data points to several blockchains and has never been hacked.
On Chainlink, collateral ratios are determined arbitrarily through staking incentives, making it gameable.
QED requires the client and the oracle to agree on the requisite collateral before execution. Customers will be able to assess probable losses in the case of inaccurate data, and if they were overpriced, the oracle is unlikely to agree to the conditions. When you look at this model closely, you’ll notice that it promotes free-market pricing processes, which terminates the possibility of it being manipulated.
Change is unavoidable, especially in the decentralized oracle space. QED has demonstrated its ability to link oracles to smart contracts without introducing any dangers. It has a significant advantage over Chainlink regarding benefits and important characteristics. It is continually proving itself as a good alternative to Chainlink. Due to its more advanced features, you can conclude that it was created to address the limitations of Chainlink and offer solutions. All in all a worthy alternative to Chainlink.