Decentralization needs to be the focus at all levels of an optimally securitized blockchain IMO. I think it’s fair to say that people get into crypto for various reasons but how many investors have a good understanding as to why decentralization is so critical. Especially if, Globally, we are transforming into a Cashless Society.
In terms of price oracles what would be the importance of decentralization? Decentralized price feeds are like the life blood of any platform/project. Look what happened here because of a lack of oracle decentralization. Who do you think came to their aid? When the latest “trusted” answer is not accurate, it leads to bad results, inaccurate price action and inevitably, in the case of smart contract transactions, often times massive financial losses.
What do oracles actually do? A good analogy would be your restaurant waiter (Oracle Listening) who takes your order (The Event) to the kitchen ordering station:) (Chainlink Node) and then collects your delicious food made in the kitchen (External Data/APIs) and then brings your order (Send Tx) to your table (Blockchain Node). If there were no kitchen ordering station (Chainlink Node) then your waiter could be seen as a single point of failure. If the restaurant were to get too busy then your waiter could easily forget your order:(
The chart below compares and contrasts the different attributes of centralized, trust-less centralized, and decentralized oracle support. It’s clear to see the upside to integrating with Chainlink oracles. Feeds.chain.link shows real time Chainlink decentralized oracle price feeds for all coin trading pairs supported. In a word, decentralization is paramount when accurate price feeds are needed for your smart contracts.
Here are a few examples of huge corporations that offer centralized price feeds and APIs used in Traditional Finance. Increased centralization leads to increased points of failure. Computer hackers would refer to this as a “honey pot”. There will be no successful honeypot attacks on the Stacks 2.0 blockchain thanks to Chainlinks’ amazing technology.
This article consists of my own thoughts and opinions supported by links to reliable sources. It is intended for educational purposes only. Your constructive feedback is always welcome. It takes skilled researchers and articulate wordsmiths to make top notch journalists and writers IMO:)