In the world of blockchains and decentralized systems, data is a critical component that is needed to execute smart contracts, enable dApps, and facilitate transactions. However, the problem with the current approach to data is that it is centralized even while most pretend to be decentralized through signer centralization and permissioned signers for the data, which goes against the very ethos of decentralization. This is where Data LPs and free market approaches come in.
One of the biggest issues with data and oracle infrastructure in crypto is that it is monopolized by players like Chainlink, and all alternatives suffer from the same closed systems for data through set signers or a single token as the core security model. This results in a centralized approach to data, where users are required to believe the majority of an unkown signer set are honest, while not having any information about them in most cases or any ability to customise who theyre using to source their data from.
Data LPs (Data Liquidity Providers) are essentially decentralized marketplaces for data using fully independant oracles. They provide a way for developers to source data from a variety of different sources through choosing which oracles and signers they wish to use specifically, while also providing incentives for individuals and entities to contribute their data to the marketplace by being able to charge fees for filling data requests. In a Data LP, anyone can contribute their data and earn rewards for doing so. Developers can then purchase the data they need from the signers they choose by requesting data directly from the oracles they wish, batching multiple different oracles with their own quorums and data thresholds, fully custom and specific to their needs. Scry is pioneering a decentralized and open market data approach with Morpheus that allows anyone to easily set up and operate their own oracle and node with no technical expertise.
By enabling anyone to fill requests for data, Scry allows developers and projects to choose where they source their data based on reputation for who they feel will be honest, as well as even source the data from their own community.
Morpheus nodes, which are self-hosted oracles, are a key component of the Scry ecosystem. They are able to accept requests for data from any API endpoint on any EVM network, directly onchain. This enables real-time requests for any data instantly and with the signers they choose.
Morpheus nodes earn fees from bounty requests for data. When developers need a feed update, they request the endpoint and attach a fee in the native chain's asset for gas. This allows nodes to be fully autonomous, refueling themselves from their own fees, and create passive revenue.
Data LPs and free market approaches to data are the only way for the blockchain and decentralized space to truly move towards a decentralized model. Scry are leading the way by providing a decentralized data marketplace that allows developers and individuals to source their data and security in a new and flexible way based on permissionlessness, openness and customisability, while also allowing them to earn and capitalize on their reputation in a community in a net beneficial way.
Security
In a decentralized ecosystem, guaranteeing data safety and security can be challenging. However, the power of choice in selecting data providers is a driving force in building a more robust and secure data marketplace. By offering a free market for data, anyone can provide data and buy data from whomever they wish, enabling a more permissionless and decentralized approach while using the same tools for custom quorums, threshold and data freshness theyre used to for deep security guarantees and customisability.
In the world of decentralized data marketplaces, there is no foolproof way to ensure data safety. Instead, users must rely on the reputation of signers or data providers creating relationships and reputations and leveraging these to promote their own incentives and rewards. These signers could be community members, acquaintances, large companies, or even the users themselves.
A key aspect of these data marketplaces is the ability to choose from multiple oracles or data providers. This flexibility allows users to select different data sources based on their preferences and trust levels, providing a level of redundancy in case some sources prove to be dishonest by diversifying their data sources while having the fine accuracy by choosing their sources per oracle.
The metamorph contract plays a crucial role in this process, as it batches data from multiple oracles, ensuring that even if some sources are dishonest, the overall data remains accurate as long as the majority are honest in the chosen set. This decentralized approach offers enhanced security compared to relying on a single signer or data provider or even a ‘decentralized‘ feed with unknown signers.
Collateralization
The $SCRY token is used as a form of collateral in this system, staked by oracles to ensure the accurate provision of data. This economic stake serves as an insurance mechanism: oracles providing incorrect data risk getting their staked tokens slashed by a designated committee. This system creates a scalable model for revenue generation and security. Oracles, by staking $SCRY, collateralize their data provision services. In return, they earn fees for fulfilling data requests. The more demand for data, the more collateral is required, thereby increasing the security of the entire system. Importantly, staking $SCRY tokens for collateralization is an entirely optional process and in no way required to run oracles or use an oracles feeds and data. This freedom of choice underscores the core fundamentals of the Morpheus protocol, supporting permissionless nodes and contracts.
The Uniswap of Data
The concept of decentralized data marketplaces can be likened to the Uniswap of data. While traditional, centralized data providers like Chainlink are often considered safe and reputable, they can be slow to adapt and support new features. In contrast, decentralized data marketplaces enable anyone to contribute and benefit from data provision, fostering a free market where Data Liquidity Providers (DLPs) can build their reputation and attract users and developers.
The beauty of the Scry ecosystem is that it puts decentralization first. The nodes, contracts, and marketplaces are all fully permissionless, which means that anyone can participate in the system without needing to ask for permission. This is a significant departure from the centralized approach that dominates the current data space. By embracing reputation and choice, decentralized data marketplaces offer a more secure and flexible approach to data provision in the blockchain and decentralized space. This free market model empowers users to select the data providers they trust, while redundancy ensures data accuracy and integrity. By fostering a community-driven approach to data, these marketplaces have the potential to revolutionize the way we think about and interact with data in a decentralized world.
Want to be a DLP? Want to source your data from custom oracles that you choose? Want to request any API endpoint, fully onchain, in realtime? https://docs.scry.finance/docs/morpheus/morpehus
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