The biggest difference between blockchain 2.0 and 1.0 is the addition of smart contracts. In fact, smart contracts cannot directly issue instructions and can only be triggered passively. This requires an oracle as an intermediate data agent to provide data for the smart contract. The oracle is an important link between the real world and blockchain data, and it is also one of the indispensable factors for the healthy and sustainable development of DeFi ecology. Not only DeFi, it can be said that all DApps that need to interact with off-chain data need oracles.
Centralized oracles may be attacked, which may result in the loss of certainty and reliability of smart contracts. To solve this problem, a decentralized oracle network was born. It is based on this that the NGK official oracle project was born, providing external data to smart contracts.
The oracle is a decentralized oracle project running on the NGK network. The function is to provide real data generated in the real world to smart contracts on the chain in the safest way, including, for example, loan prices, stable currency exchange rates, financial derivatives prices, forecast market data and etc.
The advantages of the NGK oracle project are more obvious and prominent. It uses the contract to pay the oracle node, and the node then feeds the price to the contract, which meets the characteristics of decentralization and improves the health of user participation. Choosing the NGK main network for contract deployment reduces the cost of on-chain handling fees and improves performance, and optimizes some of the problems faced by oracle projects currently on the market.
The DeFi liquidity mining launched by NGK further improves liquidity mining in the two dimensions of which are incentive mechanism and fair distribution of tokens. Which is by using the NGK decentralized oracles, developers can access the price feed mechanism of the NGK platform, which is based on the NGK decentralized oracle network.
NGK liquidity pool rewards are distributed proportionally. The DeFi protocol connects to the NGK platform to feed prices to calculate the total dollar value of pledged assets in the multi-asset pool, and distribute rewards proportionally. This mechanism allows NGK to expand the size of the liquidity pool and asset categories, and users who provide more liquidity will receive more rewards accordingly.
From the perspective of business model, decentralized oracle is a diversified data service network backed by a powerful NGK ecosystem. The NGK official oracle machine has a unique advantage, such as fast transaction processing speed, high throughput, and stable block production. There will be no delay problems caused by high gas fees and transaction backlogs in Ethereum, and it can give developers stable and real-time data services.
The DeFi application launched by NGK will achieve a new round of explosion because of the oracle. This is a great benefit to the entire NGK ecosystem and this may also revitalizes it again.
With the increasing value of DeFi applications, the importance of NGK oracles will become increasingly prominent and taking up the role as an basic infrastructure in the DeFi field. It is believed that in the future, NGK prediction function can achieve the ultimate end-to-end security, and help DeFi continue to prosper and develop in the next few years and become the mainstream solution.