What is Oracle Customizability?
Oracle customizability refers to the ability to tweak or modify oracle functionalities to fit specific needs in the crypto ecosystem. Think of oracles as the bridge between blockchains and any external sources of information such as the real world or other blockchains. Customizing them ensures that DeFi, smart contracts, and DApps can access the precise data they need, how and when they need it. Just as you'd personalize your DeFi dashboard or trading strategy, oracle customizability ensures your blockchain solutions are always in sync with the off-chain world.
Why is Oracle Customization Crucial?
Customizable oracles are crucial in the crypto world, since smart contracts and dApps need to connect with various data sources, such as financial markets, IoT sensors, or other blockchains. Speed and precision are critical as customizing oracles allows for quick data access and accurate results, but fetching data isn't enough; it must be secure. Customizable is not just an option - it's a requisite for adaptability, security, and scalability.
The restrictions of Oracle Customizability
Customizing oracles comes with challenges. Adjusting oracles requires knowledge of smart contract logic and the specific oracle framework. The performance of an oracle also depends on its external data sources, depending too much on a single data source could expose the oracle to potential data manipulations which has caused over $3.8 billion in losses! If these sources aren't reliable, the oracle's performance suffers. And while accessing diverse data ensures accuracy, it can also increase operational costs.
Network congestion is another concern, especially on platforms like Ethereum, which can lead to performance hitches. And while the core security of these oracles is strong, excessive customization might introduce vulnerabilities leading to more losses of users and dApps funds.
Furthermore, achieving the right balance is vital as over-tailoring an oracle for a specific app might create compatibility issues in other settings. Highly customized traditional solutions might struggle with adaptability across diverse applications. Keeping pace with the fast-evolving crypto ecosystem also means these oracles will need consistent updates and maintenance, a commitment that requires both time and resources.
Entangle Oracle has shifted the paradigm by addressing the challenges that often prohibit traditional oracles. At its core, Entangle facilitates customization as Distributors (user dApps/protocols) can independently develop their own Keepers (Oracles) using Entangle’s unique keeper design as a foundation.
Distributors can now modify their logic by having control over operational aspects from selecting the number of keepers to determine the type of data they process. Distributors can even choose varied data delivery methods, ensuring that data retrieval aligns perfectly with their needs.
Security is paramount where Distributors set a stake for each oracle. If a keeper underperforms or acts maliciously, a part of its stake goes towards the distributor, facilitating a trustworthy environment. Distributors also decide what oracles earn, ensuring a fair reward system.
Moreover, the Distributor friendly design inherently supports cross-chain operations, ensuring adaptability without compromising customizability.
In short, Entangle Oracle offers a secure, efficient, and bespoke solution, redefining the standards in Oracle solutions.
If you’re a developer or dApp which would like to use our oracle, read our recent blog post on how to do so: https://blog.entangle.fi/entangle/