Optimizing Oracle Fees
What Are Oracle Fees?
An oracle fee is the associated cost of aggregating information, akin to paying a courier to deliver a package to another country. For instance, when a protocol initiates token transfers to another chain, it'll pay an oracle fee, composed of gas fees and flat fees charged by Oracle Solutions.
The Bottleneck in Oracle Infrastructure
Traditional Oracle Solutions, though established, have certain scalability issues due to solely utilizing off-chain architecture when scaling already integrated protocols. To relay information cross-chain, these Oracles might need to post multiple transactions on the target blockchain. The number of on-chain transactions becomes one of the restricting factors determining oracle fees and implied scalability.
Introducing: The Entangle Solution
Entangle understands that Oracle Fees can be a barrier for protocols and aims to optimize these. Utilizing an on-chain architecture, Entangle reduces costs by aggregating data cross-chain with a single on-chain transaction.
At its core, the Entangle Oracle is an intricate web of smart contracts, spanning across multiple blockchains. These contracts rely on specialized agents, termed 'Keepers', to act as conduit for inter-blockchain communication. The headquarters of this network is the Entangle Blockchain, which hosts and secures the pivotal master smart contract responsible for verifying consensus of Keepers.
After consensus has been achieved, data is relayed to its end destination by a designated Execution Keeper, ensuring efficiency and integrity in the transfer.
To better understand how we’re approaching this, imagine the Entangle system as an election process. Entangle Keepers are akin to election officers, tallying votes (data) from various districts (blockchains) and submitting them to a counting center.
At this center, every ballot is cross-referenced and cross-checked (verification and consensus) to ensure its authenticity. The chief electoral office, analogous to our master smart contract, guarantees that all votes are processed without any discrepancies. Once everything is verified and tallied, the official results, overseen by the Execution Keeper (akin to the chief returning officer), are then announced and shared with the wider public.
Entangle’s Mission
Entangle is at the forefront of innovation, aiming to redefine cost-efficiency in the Oracle space wherever possible.
Our goal is to empower protocols and developers with the tools to scale seamlessly and efficiently.
For more insights on Entangle's customization options for developers, revisit our previous article: https://blog.entangle.fi/modular-plug-play/