Jan 14, 2021
How does decentralized oracle help NGK DeFi project development?
As early as around 2014, protocol smart contracts have appeared. The original agreement was cumbersome and contained many different parts. Each part is a separate smart contract. Different smart contracts need to be added to the protocol of the blockchain itself, which takes months or even years. Then there was a major change, that is, the scripted smart contract of Ethereum appeared, replacing the original clumsy protocol smart contract. It only takes a few days to a few weeks to complete the smart contract script and launch the smart contract, which also gave birth to a new type of smart contract and realizes its modularity. The interaction between contracts can be realized, and the scripts are developed by different people. This is definitely a major innovation. Like the current NGK smart contract, it is developed based on this kind of technology.
Now, the market has the ability to develop scripted smart contracts, and this capability is rapidly expanding to cover more and more application scenarios. So scripted smart contracts started to enter the fields of finance, international trade and insurance. These products all require data input, such as market price data, and insurance products require weather data. These data are transmitted to the blockchain, so the current trend is to connect scripted smart contracts to the offline world. The oracle is the key to realizing this trend. This trend has currently driven some areas of smart contracts to achieve great growth, namely the DeFi smart contract field. Most DeFi smart contracts need to connect two systems, one is an on-chain smart contract system and on-chain code, and the other is an oracle system such as NGK decentralized oracle, which inputs data into the system.
So from here we can see that in addition to the protocol developing modules, systems such as NGK are also developing modules and eventually integrated into the protocol. The fundamental reason is the next generation of smart contract products, such as financial products, international trade products and insurance products, blockchain games, and so on. Most application scenarios require an additional system that is the oracle. They need to be connected to the chain to obtain data. Only by accessing the data under the chain can these new application scenarios be realized. This is the area we are focusing on. What we are concerned about is how to create additional on-chain services and transmit data, random numbers, and various resources required by smart contracts to the chain. According to our observation, every time we release a new type of data, a new application scenario will be activated. Therefore, not only is the protocol transforming towards modularity, NGK is also providing modular services for each smart contract to assist in the development of the contract. One of our most popular services now is market price data. Market price data is very important for various products in the DeFi ecosystem, such as insurance products and financial products. Therefore, NGK DeFi projects integrate NGK decentralized oracle to obtain data, because they must input data to realize their functions. So, while high-quality decentralized oracles such as NGK continue to emerge, DeFi’s market size, contract volume, and product volume are also growing rapidly.
