Emurgo announced the launch of its latest product development, Oracle Core, in partnership with Ergo, a proof-of-work (PoW) and UTXO-based blockchain protocol built to be an efficient and secure financial contracts platforms.
Emurgo made this announcement via its official Twitter handle a couple of hours ago. According to the report, the first two oracles are deployed on Ergo to provide price feeds for ADA/USD and ERG/USD trading pairs.
In a report credited to Cointelegraph, Alexander Chepurnoy, a core developer at Ergo, stated that the idea involves major players in the DeFi ecosystem donating funds to the oracle pools that seem useful to them. Data providers will then get compensated with the funds from the pool.
The model of the project also foresees data providers staking funds as collateral. The new model is cryptocurrency agnostic, unlike Chainlink that introduced the digital token LINK as a gas-like payment mechanism. So, if a provider feeds low-quality data, his stake can get slashed.
In a series of tweets, Emurgo described the new development as follows:
“Today EMURGO and Ergo platform mark a historic moment for UTXO based dApps and DeFi applications. Developers may now build and run Oracle Pools on the Ergo blockchain with the joint release of our smart contracts & off-chain “Oracle Core”.
“Releasing the “Oracle Core” to the public provides all the code/tooling/smart contracts for developers to build and run one. Oracles are an integral part of allowing data outside the blockchain (off-chain) to interact and be used on the blockchain inside of smart contracts.
“Oracles have played a significant role in the surging popularity of DeFi services which “require access” to off-chain financial data. In depth research led by EMURGO’s Robert Kornacki reimagined a new model – Oracle Pools – for UTXO based dApps.
“Oracle Pools generate accumulated oracle data with built-in theoretical incentives for oracles to provide more accurate datapoints – an improved attempt at upgrading current Oracles.
“Ergo has already developed 2 public Oracle Pools, Cardano ADA/USD and Ergo Erg/USD.
“Now that we have released our “Oracle Core,” we cannot wait to see how Oracle Pools continue to develop on Cardano during Gogeun’s smart contracts era – the bridge for Cardano (ADA) supported DeFi products and services.”
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