/biz/ - Business & Finance

>>27400183
>So the issue with data is that those set ups where the team bake their own oracle, and kind of say, Hey, Im going to make my own oracle, and I maybe haven’t built a financial product before, I haven’t built a system the relies on market data quality, so what I’m going to do is go to a single exchange, or I’m going to go to two exchanges, and I’m going to just select my favorite one or two exchanges, because on the specific day when I make the oracle for my protocol that Im going to operate, everything is fine. Those exchanges have a lot of volume, they are providing representative data about you know the price of an asset, there is price discovery happening, you know they are the mechanism to give me accurate price data. That really doesn’t work, and that has been proven out through things like flash loan attacks, and various other attacks where people have gone on to manipulate markets and places like Coinbase, and then at the same time manipulating some other exchanges that are more decentralized, and then manipulating both at the same to create false trepidations. So what chainlink does, is chainlink ends up sourcing data from the whole market, from hundreds of exchanges. And its been this way by design from day zero of the network going live. And the reason for that is the application of decentralization as a concept to data quality. If we are getting decentralized guarantees from a financial product because its run on hundreds of different nodes in a smart contract network somewhere, then we should get that same level of guarantees, if we can, from the data and the triggering side of it.