Pyth currently has no tokens, so understanding its design and trends in advance, understanding the pain points of its oracle service entering the current market, may help us seize the opportunity in the upcoming market.

Compiled & Translated by: Deep Tide TechFlow

The oracle brings important data (mainly asset prices) onto the blockchain and is a key part of DeFi. Can the current operation of oracles be improved?

Oracle service provider Pyth sees room for improvement and presents an oracle choice other than Chainlink. Mike Cahill, CEO of a new Pyth affiliate company called Douro Labs, participated in a recent Unchained podcast, explaining the opportunities he sees to build better oracles.

Since Pyth currently has no tokens, understanding its design and trends in advance, understanding the pain points of its oracle service entering the current market, may help us seize the opportunity in the upcoming market.

5-minute podcast notes to save you 45 minutes of time.

The following is the main content of the conversation, translated and summarized by Deep Tide, and the main points are presented:

Host: Laura Shin, Resident Host of Unchained

Speaker: Mike Cahill, CEO at Douro Labs

Video Source: Unchained Podcast

Program: Link

Release Date: August 29

How did Mike become involved with Pyth?

• Speaker Mike Cahill is the current CEO of Douro Labs.

(Note: More details about Douro Labs will be provided later)

• He began his career in traditional finance, particularly in foreign exchange sales and trading at Morgan Stanley. He then observed the trend of market electronification and gradually shifted to the cryptocurrency field.

• He worked at KCG, helping to establish the foreign exchange trading business, and began working at Jump Trading in 2019, where he started contributing to the Pyth Network as a long-term contributor.

Introduction to Pyth

• Pyth is a data Oracle network that focuses on bringing financial market data onto the chain in a reliable and low-latency manner.

• The design of the Pyth Network is inclusive; it is a first-party data network. The nodes of Pyth are entities that actually publish or generate data, including trading companies and exchanges.

• Pyth Network has 85 data providers, including almost all major trading companies and large cryptocurrency exchanges.

• The goal of Pyth Network is to become a distribution platform for all world financial data, similar to how Spotify is a distribution platform for all world music.

Challenges Facing Current Oracles

• Mike believes that the challenges facing current oracles are multifaceted. Specific aspects include data providers, update methods, and the risk of attacks, which can be further elaborated as follows:

• Data Update Delays:

  • Current Oracle solutions, such as Chainlink, suffer from slow data update speeds.

  • This delay may affect the real-time and accuracy of on-chain applications.

• Limitations of Data Sources:

  • Many Oracle solutions only use free data, which may not be the most accurate or comprehensive.

  • For example, financial market data in traditional asset fields is very expensive and not freely available.

• Risk of Oracle Attacks:

  • Oracle attacks are a common security issue, where attackers may briefly move prices on small exchanges and then take actions on-chain to exploit these price fluctuations.

  • To prevent such attacks, some solutions suggest slowing down data update speeds.

• Accuracy and Trust Issues of Data:

  • Pyth Network adopts an innovative approach, requiring data sources to update every 300 milliseconds and include a confidence interval.

  • This means that even if a data source provides incorrect information, the information from other sources can provide a broader confidence interval to help determine the accuracy of the data.

• Motivation and Reliability of Data Providers:

  • Selecting suitable data providers is a challenge. Pyth Network seeks institutional-grade companies with strong reputations as data providers.

  • Because the risks these companies face in other businesses are much greater than the benefits they could gain from attempting to manipulate Pyth prices.

• Collaboration with Traditional Financial Institutions:

  • Collaborating with traditional financial institutions is also a challenge. For example, having conversations with data providers from the traditional financial world to understand their willingness to collaborate with companies bridging traditional finance and the crypto space.

• Diversity of Data Providers:

  • Some data providers may have never monetized their market data in the past, while others, such as institutions like Cboe (Chicago Board Options Exchange), have monetized their data. This diversity requires different incentive and collaboration models.

• Diversity of Oracle Solutions:

  • There are different types of Oracle solutions, such as push or pull, fast or slow, first-party or third-party, single source or mixed source. This increases the complexity in selecting and implementing solutions.

Specific Actions by Pyth to Address Challenges

• First Party Data Network:

  • Pyth is a first-party data network, meaning that the nodes in the network are actually entities that publish or generate data.

  • This contrasts with a reporting network that relies on fetching data from the internet and publishing it on-chain.

• Pull Model Oracle:

  • Pyth Network adopts a pull model Oracle, which has low-latency characteristics, enabling it to provide users with unprecedented trading experiences.

  • Note: Pulling refers to the flexibility for data consumers to choose to pull data from the oracle when needed, rather than passively receiving pushed data.

• Multi-Chain Oracles:

  • Pyth Network started with Solana, but over time, it has expanded across multiple chains.

  • This multi-chain strategy means that Pyth can provide data on multiple different blockchains, offering users broader data access.

  • Comparison with Facebook: Pyth Network's expansion strategy is similar to Facebook's growth strategy. Facebook initially started as a social network for Harvard, then expanded to other Ivy League schools, and then to other universities in the United States, and so on.

• Application Specific Chain:

  • Due to periods when Solana became very popular and congested, Pyth Network realized the need to create an application-specific chain, namely Pythnet.

  • This chain can more effectively handle data without being affected by transactions or other activities on other blockchains.

• Perseus Upgrade:

  • Mike mentioned that this is an important upgrade for Pyth Network, using Merkle trees for proof, allowing for more customized data delivery.

  • This upgrade enables Pyth to provide data more efficiently across multiple chains while also reducing transaction costs.

Establishment of Douro Labs

• Establishment and Goals of Douro Labs:

  • Douro Labs is a team of 20 people, including alumni from companies such as Jump, Goldman Sachs, AWS, and Chorus One.

  • Douro Labs is a blockchain infrastructure company, with its current main focus and goal being the Pyth Network. They aim to provide tools and development for the network to accelerate Pyth's growth.

  • Mike Cahill and his partners Kieran and Jan have a deep understanding and contribution to Pyth, which gives Douro Labs a strong background and expertise in the development of Pyth.

• Future Plans of Douro Labs:

  • While Douro Labs currently focuses on the Pyth Network, there is a possibility of expanding its services to other projects in the future.

  • They plan to continue advancing the network, which may include technical upgrades such as the upcoming Perseus upgrade.

  • Douro Labs also plans to collaborate with data providers to expand the network through governance processes.

• Vision of Douro Labs:

  • Mike Cahill's vision is that all financial data should be transmitted to the blockchain through Pyth, just like all music is transmitted through Spotify.

  • He hopes to use technology to enable more people to access the capital markets, thereby reducing costs and expanding the user base.

In general, Douro Labs is a newly established company whose main goal is to provide tools and development for the Pyth Network to accelerate its growth and expansion in the crypto space.

Views on the Current Crypto Market

• Market Status:

  • The crypto market is currently in a very interesting state. Trading volume is decreasing, market makers are withdrawing, and exchanges like Binance seem to be in an unstable state. This makes the entire crypto market seem to be undergoing a transformation.

• Market Observations:

  • Despite the overall market may seem somewhat discouraging, Mike Cahill observes that the number of developers and builders has not decreased.

  • Pyth has three new app integrations every week, indicating that people are still building new projects.

• Optimistic View:

  • Despite the price drop of Bitcoin, Mike Cahill is optimistic about the market. He believes that despite the temporary hit to market sentiment, there are now better tools and applications available.

  • He believes that developers are still building in the bear market, creating conditions for future market growth.

• Potential Impact on the Market:

  • Mike Cahill believes that the primary growth trend in technology is to make things cheaper (reduce the cost of products, services, or solutions) and more widely distributed.

  • He believes that cryptocurrencies and DeFi will benefit those who previously could not access these tools, meaning more people can use crypto services and tools at a lower cost.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。