Today, let's discuss a rarely addressed issue. You monitor charts daily, analyze candlesticks, chase hot topics, feeling like you're fighting against the market. But have you ever wondered—are the prices you see, the collateral ratios you rely on, and the various trades you participate in truly as you imagine them?
Let me share a possibly uncomfortable fact: you're not trading the coin itself, but the data on the chain. And the source of that data? It might be the most vulnerable part of the entire system.
It's like being at a supposedly completely fair gambling table, but the dealer has a set of cards that can be swapped at any time.
**The Deadly Flaw of Blockchain: Information Vacuum**
Blockchain is powerful—code execution, difficult to tamper with. But it has a fundamental flaw: **it knows nothing about the outside world**. How much is Bitcoin worth now? Is the asset behind a certain NFT real or fictional? It cannot see anything that happens off-chain.
It needs someone to tell it—this "teller" is called an oracle. What if the oracle gives false information or intentionally deceives? Then, the "immutable" protocol will execute based on incorrect data. Your positions could be wrongly liquidated, the assets you buy could be baseless, and fair outcomes could be predetermined long ago.
This is the underlying issue behind all DeFi applications, blockchain games, and on-chain finance—an issue that no one actively discusses but can overturn everything.
**Emerging Solutions**
Some projects are exploring a different approach—building mechanisms to make data sources harder to manipulate. The core idea is: instead of trusting a single data provider, make multiple independent data nodes check and balance each other, raising the cost of fraud to a point where it's not worth it.
This could change the game. But only if this mechanism can truly be implemented.
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NFT_Therapy
· 55m ago
The oracle problem should have been discussed thoroughly a long time ago; we've all been kept in the dark.
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BlockchainDecoder
· 6h ago
Oracle issues are indeed fundamental pain points, but from a technical architecture perspective, the multi-node balancing scheme also faces several unavoidable challenges: 1. The effectiveness of the witch attack protection mechanism remains to be verified; 2. Improper design of node incentive mechanisms may exacerbate data bias; 3. The notion of high costs is overly idealized. It is recommended to refer to the risk assessment section of the Chainlink white paper (2017).
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TestnetNomad
· 6h ago
I've long stopped believing in oracles; it's just a bunch of middlemen profiting from the spread.
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TokenomicsTherapist
· 6h ago
Oracles, to put it simply, are just old wine in new bottles; it's just a change of disguise for centralized risks.
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MEV_Whisperer
· 6h ago
The issue of oracle failure should have been addressed long ago. I saw through that Luna incident clearly back then.
View OriginalReply0
MetaLord420
· 6h ago
The oracle thing should have been clarified long ago; we're all just betting that a group of nodes won't collude to do evil.
Today, let's discuss a rarely addressed issue. You monitor charts daily, analyze candlesticks, chase hot topics, feeling like you're fighting against the market. But have you ever wondered—are the prices you see, the collateral ratios you rely on, and the various trades you participate in truly as you imagine them?
Let me share a possibly uncomfortable fact: you're not trading the coin itself, but the data on the chain. And the source of that data? It might be the most vulnerable part of the entire system.
It's like being at a supposedly completely fair gambling table, but the dealer has a set of cards that can be swapped at any time.
**The Deadly Flaw of Blockchain: Information Vacuum**
Blockchain is powerful—code execution, difficult to tamper with. But it has a fundamental flaw: **it knows nothing about the outside world**. How much is Bitcoin worth now? Is the asset behind a certain NFT real or fictional? It cannot see anything that happens off-chain.
It needs someone to tell it—this "teller" is called an oracle. What if the oracle gives false information or intentionally deceives? Then, the "immutable" protocol will execute based on incorrect data. Your positions could be wrongly liquidated, the assets you buy could be baseless, and fair outcomes could be predetermined long ago.
This is the underlying issue behind all DeFi applications, blockchain games, and on-chain finance—an issue that no one actively discusses but can overturn everything.
**Emerging Solutions**
Some projects are exploring a different approach—building mechanisms to make data sources harder to manipulate. The core idea is: instead of trusting a single data provider, make multiple independent data nodes check and balance each other, raising the cost of fraud to a point where it's not worth it.
This could change the game. But only if this mechanism can truly be implemented.