Oracle Coins are the cryptocurrency that belong to the oracles that serve as smart contracts on a blockchain. Oracles are information sources that can provide data from the "real world" to a blockchain network. Normally, a blockchain can only use the data that can be obtained on the blockchain itself; with oracles, external data can also be integrated on the blockchain. There are different types of oracles, such as external oracles that collect information from external sources, and internal oracles that obtain information from within the blockchain network. The main purpose of oracles is to provide reliable data to blockchain networks and thus create the possibility for automation of contractual agreements. We discuss some of the most interesting Oracle Coins below.
1. Chainlink (LINK)
Chainlink is one of the leading oracle networks that links smart contracts on blockchain networks to the outside world. It was designed in 2017 to deliver reliable and valuable data from external sources such as stock exchanges, weather forecasts, and other applications to smart contracts on the blockchain. Chainlink itself does not have a native blockchain, because it can operate on multiple blockchains at the same time via the Ethereum blockchains. The oracles within the network collect and validate data from thousands of data sources and deliver it to Chainlink, which then feeds the dynamic input to the smart contracts. Chainlink is powered by its own cryptocurrency, the Chainlink Token (LINK)
. This is a utility token used to monitor data and stabilize contracts. The validator nodes are rewarded in the form of LINK tokens, which can also be used to stake.
2. Band Protocol (BAND)
is also an Oracle network that works slightly differently. Like Chainlink, it uses a decentralized system of nodes to collect and verify data. It can also connect APIs to smart contracts to facilitate the exchange of information between on-chain and off-chain data sources. This ensures a reliable flow of information from external sources to smart contracts on the blockchain. Band Protocol would like to improve this process of integration. The platform uses the native token BAND, which is used to create rewards for node operators who provide and verify data. Band Protocol's goal is to provide a simple, reliable and decentralized solution for integrating "real world" data with blockchain networks, enabling users to access valuable data for the fulfillment of contractual agreements. The platform targets multiple blockchain platforms, such as Binance Smart Chain and Polygon, from financial service providers to developers of DeFi applications.
3. NEST Protocol (NEST)
NEST Protocol is a decentralized trading infrastructure with an open-source platform. The network works with so-called stochastic assets, which means that it uses mathematical formulas and simulations to determine the probability of certain outcomes, such as the value of a certain asset in the future. Based on these probabilities, decisions are made about how to use the protocol and allocate assets. By using this technique, Next Protocol can manage the value of stochastic assets in an efficient and effective manner.
Nest Protocol targets multiple blockchain platforms, including Ethereum and Binance Smart Chain, giving developers access to a larger source of data and greater flexibility in integrating external data with smart contracts. Nest Protocol is completely decentralized and uses a network of nodes to obtain and verify data. These nodes are rewarded in NEST tokens, which according to the developers are “information assets” to determine the value of information.
4. UMA (UMA)
is a so-called Optimistic Oracle (OO), which enables contracts to quickly request and receive all types of data. UMA is a kind of Oracle that does not depend on central authorities to verify and confirm data, but on the participants who are actively involved and process that data. It is therefore called 'optimistic' because it is based on confidence that (the majority of) these participants are honest and that there is a common interest in providing the correct information. The participants can earn the UMA token by participating in answering requests. We work with the Data Verification Mechanism (DVM), where you can be rewarded by passing on correct data, but you can also be punished by making requests that are rejected. In that case your tokens are taken away. Therefore it‘s in every participant's interest to provide the correct information at all times.
5. DIA (DIA)
(Decentralized Information Asset) is an open-source oracle platform that enables market players to collect, deliver and share reliable data. DIA aims to be an ecosystem for open financial data in a financial smart contract ecosystem, bringing together data analysts, data providers and data users. Overall, DIA provides a reliable and verifiable bridge between off-chain data from various sources and on-chain smart contracts that can be used to build various financial dApps. It uses the governance token DIA and is built on the Ethereum blockchain. It is also possible to stake DIA.
The founders themselves say that the current design of oracles is not transparent. DIA wants to change that by offering advanced analyzes and tools so that users have more insight into financial data. DIA aims to be a more reliable data platform for the DeFi ecosystem.
6. Kylin Network (KYL)
Kylin Network is a decentralized finance (DeFi) infrastructure project built on the Ethereum blockchain. It provides cross-chain data and infrastructure services to help developers build and deploy DeFi applications. This is called #DeData for Web 3.0, leveraged by Polkadot. The native cryptocurrency of the Kylin network is the KYL token, which is used to pay for data and infrastructure services. It is also possible to stake this token, in order to have a say in the direction and development of the platform. Kylin Network aims to address the scalability and interoperability challenges within the DeFi ecosystem. By providing a reliable and scalable data and infrastructure layer, Kylin Network enables DeFi developers to build and deploy applications more easily and efficiently.
7. Umbrella Network (UMB)
The Umbrella Network launched in early 2021 as one of the largest Initial DEX Offerings (IDOs). Umbrella Network is a decentralized infrastructure project built on the Ethereum blockchain. It aims to provide a scalable, secure and decentralized platform for decentralized applications (dApps) and decentralized autonomous organizations (DAOs). Umbrella Network's native cryptocurrency is the UMB token, which is used for governance, staking, and payment for network services. Umbrella provides access to financial datasets for blockchain app developers in the crypto world and those interested in real world business transactions. By introducing a layer-two blockchain integration, Umbrella Network creates a highly scalable oracle solution, enabling it to better process large amounts of data.
8. WINkLink (WIN)
Ethereum in particular is a popular blockchain on which many smart contracts are based. WINkLink
is the first oracle built on the TRON ecosystem, using the WIN token. It is a decentralized platform that distributes data from the outside world via smart contracts on the TRON ecosystem. You can earn WIN tokens by providing reliable and accurate information as a node. You can also use these tokens to pay transaction costs on the network. WINkLink specializes in a so-called Price Service, where they can display the accurate prices of digital currency pairs via dApps in a stable and accurate manner. Several WINk oracles have been built that together collect all data from the outside world and can thus calculate the right price. You can even submit a request for a trading pair that you would like to see the price of.
9. API3 (API3)
is the solution to decentralize APIs (Application Programming Interface). Not all smart contracts on a blockchain have access to all information because these contracts do not have direct access to certain APIs on a blockchain. API3 wants to do something about this, by ensuring that APIs are decentralized. The goal is to create powerful dApps using decentralized, secure, and measurable data feeds, without the use of third parties such as oracles that provide data. The main problem they want to solve with this is (lack of) connectivity. API3 is an Ethereum token that powers the API3 project that aims to connect traditional APIs to the blockchain ecosystem. The API3 token runs on the Ethereum network and is used to run the API3 DAO (Decentralized Autonomous Organization) and to vote on things to advance the project.
10. IDENA (IDNA)
Idena is the first Proof-of-Person blockchain based on true democracy. That is, everyone who wants to be a validator in the network has their own crypto identity. This is untraceable and represents one real person. Every person in this network is equal and has the same voting rights as everyone else. This is the first PoP network where each node is linked to an individual. Any node can be an oracle, and anyone can be a node. You must verify your identity when you wish to apply. Idena works with the IDNA token, which you can mine without the need for expensive computers. They themselves support the idea that everyone should be able to participate and have an equal right to all possibilities, so with a normal laptop you should be able to mine the token.