Oracles are absolutely essential to defy if I deposit collateral and I take out a loan – that smart contract needs to know the value of my collateral, and if that value falls too much – and I don’t add to it – the smart contract will liquidate my position. It needs an oracle to provide those prices accurately, but here’s the issue with Oracle’s. None of them really work.
Only. This is also the best place to ask me questions as always not financial advice and to be clear. This isn’t sponsored content, I don’t own any modify, but I might pick some up in the coming weeks or months now. Oracles, smart contracts often need information outside the blockchain. They need an oracle to provide that information.
Take chain link the best oracle service out there. It’S made up of a network of oracle providers who provide data, but every oracle, including chain link, operates. What’S known as a shelling point game where each oracle provider tries to give the same data, they think all the other oracles will give rather than trying to give objective truth. The reason they do this is that any oracles that disagree with the majority get punished financially. For it on a long enough time horizon, there will be instances where this fails.
What will happen is there’ll be times when the majority will be wrong and the minority will be punished for giving accurate data or the minority just won’t give that accurate data because if they think the majority will be wrong, they’re still incentivized to agree with them. The other major risk with individual oracle markets like chain link is that it can be hit with a Sybil attack where someone will create a lot of fake identities, build up a great long-term reputation and then wait for the right moment to exploit the system.
On a multi-million or multi-billion dollar bet that relies on this oracle modify is improving upon this by aggregating data from multiple oracle services, rather than relying upon a single one, and this is a big step in the right direction by aggregating data from multiple oracles. It makes it far more difficult to successfully perform a civil attack, because the attacker would have to do so on a combination of chain link, teller, dia, API, 3 dos and band rather than just one. This still doesn’t solve the problem with the shelling point game, but it might be the case that there isn’t a solution to that.
If you can show me an oracle that doesn’t boil down to a shelling point game and it’s decentralized. Please tell me about it before you tell anyone else, so I can ape into it like a true d-gen Modify is offering four main solutions or products. Oracle aggregation is my favourite aspect of Modify because this is what makes it so much harder to perform.
A civil attack oracles are centralized, they are vulnerable to bad actors. Even chain link is still centralized with only about 35 oracles providing regular data to be clear chain link is permissionless and anyone can become an oracle on it, but in practice, it’s still centralized due to the number of active oracles since chain link is only one of Several oracles modify will use.
This makes it far more decentralized. Looking at this graphic from the modified white paper, we see that they plan to take data from band chain link, teller dia as well as API, 3 and dos. Although those two aren’t listed here and pull that data into the dowse or decentralized aggregated oracle solution, finding the best consensus and sending that out to clients via the Modify oracle marketplace, the code for the Dallas is currently closed source.
But they plan to make it open source once they deploy the smart contract to the Ethereum mainnet, so developers can check the code before they use any of the data from it. Now, let’s look at the Modify oracle marketplace.
The idea here is to create a market that allows oracle providers to advertise their services and clients to request specific data. The plan is to make a turnkey platform that doesn’t require any coding experience with easy implementation for both parties. The on-demand issue is a tricky one.
Most oracle providers provide real-time data of the different prices of different cryptocurrencies, but there is a time delay for more uncommon data needs or one-off situations. So this isn’t really a problem for things like default lending protocols which have several oracles to choose from, but there’s not a great solution for one-off data needs.
Here’S how Modify plans to solve this using their marketplace? Bob and Alice are betting on the results of an election. They will use the Modify UI to supply all their information. For this bet. This could include the amount of collateral.
Each of them will deposit to the smart contract a description of the data they need, where the data should be sourced from the potential outcomes, a timer for the bet to expire, the number of validators that must come to reach consensus, the minimum reputation and minimum collateral Bonded by each validator and the validator incentive, once they have filled out this information and deposited their collateral and the timer expires in this case, this would be the deadline of the election results.
The validators will begin submitting the results once the minimum number of validators have submitted and the contract reaches consensus. The results are posted and the winner will be able to withdraw their funds from the smart contract by placing the RFQ ahead of time. They’Ll be able to get their data in a timelier manner than they otherwise would. This doesn’t fix the oracle problems, but it’s a major step forward.
Lastly, let’s take a look at their defy dashboard plans. This isn’t live yet so I’ll briefly mention what they plan to build and then do an update, content after it goes live, subscribe right now, so you don’t forget and miss it. Their plan is to integrate their oracle solutions into a larger dashboard that you can personalize to your liking as a one-stop-shop for your crypto world.
This includes a portfolio manager with on-chain metrics market notifications, trending news and across chain decks to get the best prices and pays on your funds. This is really ambitious on top of what they’re already building so my hope is that they prioritize all of the Oracle solutions.
Over the dashboard, if they can pull all of it off great but we’ll have to see how it goes here is the Modify executive team. They don’t have links to their individual LinkedIn pages, but you can find the links in the Modify channel of our explorer’s discord, which you should definitely join for more quality info. I’ve chatted with Ryan lowe, modified CEO on LinkedIn and telegram, and he’s active in the modified telegram group linked in the description.
So if you have a specific question for him, that’s the best place for it, notably, Yusof Ahmadi is a CMO and he’s also a YouTuber with over 600 000 subscribers. He hasn’t put out any new content for about nine months, but building a youtube channel that size is no joke.
This shows that he’s able to grab attention and build a large media presence, which should be helpful for the project other than that. There’S not a whole lot of public info about the team. I asked Ryan about it and he said they have two strategic advisors and one technical advisor.
Their CTO is developing full-time for them and they’re currently vetting two other developers, and they have a team of contracted developers, as I get more information I’ll be sure to share it in that follow-up, content here’s, the token distribution, 51.82 percent of the tokens went to the Token sale 6.
2 is for the team, which is a very fair percentage. 20.5 is for the Modify foundation, 9.1 is for their core partners and 8.86 is for validation and staking rewards, and, lastly, 2.95 is for unit swap liquidity.
The max supply is 22 million mod tokens and it will take three years for all of them to be unlocked. Now. What will the mod token be used for? I’m so glad you asked first in order to provide oracle services and the Modify oracle marketplace, validators will have to bond their mod tokens as collateral. The more adoption the network gets, the more tokens will be bonded and this will drive down the supply.
As a side note here, Ryan told me that they’re looking to have their on-demand oracle were cross-chained while keeping collateral bonded on Ethereum, so validators can bond all of the collateral on each and then validate on any other EVM chain they’re. Currently, in talks with another EVM chain to support this, although he didn’t say which one I would suspect that it’s buying that smart chain, though that would make the most sense with the growing popularity of BSC.
But we’ll have to wait for confirmation for users requesting oracle data for the on-demand oracle service and within the oracle marketplace in general, the fees will be collected in mod tokens. The team hasn’t finalized. How much the fees will be where they will be allocated or whether a portion will be burned, but they have considered each of these options and will announce the details before the smart contract is deployed to the Ethereum mainnet beyond those.
The mod token will be used for the subscription services for the d5 dashboard when those go live. You’Ll also have the option to stake your mod tokens or earn more of them by providing liquidity on AMMS like Unispot. Now the final thing that the mod token will be used for is governance, as the network becomes more decentralized network participants can vote on its direction.
There is a big asterisk here, though, because governance tokens so far haven’t really worked. The reason is that no matter what the community votes for the developers still get the final say on whether or not they want to implement it.