Do you really think that DeFi oracles are fair and transparent? Think again.
Smart contracts themselves are blind; they cannot see off-chain data. Want to know the real market conditions? You have to buy it from an oracle. This raises a painful question: are you getting genuine data or manipulated false information?
Many people equate "decentralization" with "honesty." This is a fatal misconception. Decentralization only answers "who can participate," but it doesn't answer "why should participants be honest." No matter how many nodes there are, if the incentive mechanism encourages cheating, it only creates more cheaters.
From this perspective, the most intense competition in the oracle space is not on the technical level but on the level of incentive design.
The idea behind the APRO project is quite interesting—it clearly understands human nature. Relying solely on moral persuasion is useless; honesty must become the most profitable choice. How to do that? Through economic means.
The core strategy is to separate data provision from data verification. Many oracle systems combine these two roles, which gives bad actors too much room. But if you design incentives to separate data provision and verification, and motivate verifiers to expose lies… the situation changes completely.
This way, the cost of cheating is infinitely increased, and honesty becomes the optimal strategy. This is not technological innovation; it is economic innovation.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
16 Likes
Reward
16
5
Repost
Share
Comment
0/400
GhostInTheChain
· 01-08 00:55
It sounds good, but no matter how perfect the incentive mechanism is, it can't prevent someone from throwing money to sabotage it.
View OriginalReply0
MoonBoi42
· 01-07 04:39
It's another story about oracles. Basically, it's just that the incentive mechanism wasn't well designed.
View OriginalReply0
rugpull_ptsd
· 01-05 01:54
Decentralization ≠ honesty. That really hit home for me. I’ve been scammed before, and now whenever I see the words "transparency," I start to doubt everything.
View OriginalReply0
ImpermanentTherapist
· 01-05 01:41
Decentralization ≠ honesty. Be truly aware of this. Incentive mechanisms are the core; having many nodes is useless.
View OriginalReply0
GateUser-9ad11037
· 01-05 01:31
Well, it sounds good, but the incentive mechanism can also be exploited by the wealthy.
Do you really think that DeFi oracles are fair and transparent? Think again.
Smart contracts themselves are blind; they cannot see off-chain data. Want to know the real market conditions? You have to buy it from an oracle. This raises a painful question: are you getting genuine data or manipulated false information?
Many people equate "decentralization" with "honesty." This is a fatal misconception. Decentralization only answers "who can participate," but it doesn't answer "why should participants be honest." No matter how many nodes there are, if the incentive mechanism encourages cheating, it only creates more cheaters.
From this perspective, the most intense competition in the oracle space is not on the technical level but on the level of incentive design.
The idea behind the APRO project is quite interesting—it clearly understands human nature. Relying solely on moral persuasion is useless; honesty must become the most profitable choice. How to do that? Through economic means.
The core strategy is to separate data provision from data verification. Many oracle systems combine these two roles, which gives bad actors too much room. But if you design incentives to separate data provision and verification, and motivate verifiers to expose lies… the situation changes completely.
This way, the cost of cheating is infinitely increased, and honesty becomes the optimal strategy. This is not technological innovation; it is economic innovation.