On October 2nd, 2023, the Cardano ecosystem reached a significant milestone as Orcfax launched its mainnet price feeds on the Cardano Blockchain. These price feeds are a vital component of the blockchain ecosystem, serving as trusted sources of real-world data. But what exactly are oracles, and how does Orcfax work?
What Are Oracles?
Oracles play a pivotal role in bridging the gap between smart contracts and real-world data. In essence, they serve as trusted sources of off-chain information that provide smart contracts with the data needed to execute specific actions. Oracles act as intermediaries between blockchain networks and external data sources, enabling smart contracts to interact with real-world events, prices, and information.
How Does Orcfax Work?
Orcfax operates as a second-generation oracle on the Cardano Blockchain, leveraging the Cardano Open Oracle Protocol (COOP) to publish and format its data feeds. Its architectural framework consists of specialized nodes primarily coded in Python, Haskell, and Plutus v2. These nodes are responsible for broadcasting real-world data, such as the USD price of ADA, in the form of CBOR-serialized reference inputs within Cardano transactions.
Orcfax generates permissionless, standards-compliant, archival packages that are made available for auditing the flow of its data collection, validation, and publication. This allows Orcfax to demonstrate how their source data was collected and validated.
These data points are subsequently accessed and employed by smart contracts and scripts to execute various business logic operations. The real-world events Orcfax covers are diverse, ranging from currency price pairs and sporting event outcomes to supply-chain activities, gaming, real estate, and even gambling. Orcfax brings this wealth of real-world information onto the Cardano Blockchain.
How Decentralized Oracles Benefit Cardano’s Ecosystem
Oracles will have a pivotal role within the Cardano ecosystem, supporting a wide range of decentralized applications. Lending and Synthetic protocols will rely on oracles for decentralized data feeds to accurately monitor asset prices. Gaming and gambling protocols will benefit from oracles for provably random numbers to ensure transparency and fairness. These examples offer just a glimpse into the many ways oracles will enrich Cardano’s diverse ecosystem.
Orcfax has launched its inaugural ADA/USD price feed, marking a significant milestone within the Cardano ecosystem. Notably, this feed is available to all users free of charge for an entire year thanks to Orcfax’s generous subsidy.
In a conversation with Vahid from the Orcfax team, we inquired about the frequency of updates for these complimentary price feeds, a critical aspect for users relying on real-time data. Vahid stated that the price feed updates will occur at intervals of either “1 hour or 1% deviation, whichever comes first.” This dynamic approach ensures timely access to precise pricing information, which is indispensable for various applications and use cases within the Cardano ecosystem.
As the Cardano network continues to grow and diversify, the need for comprehensive price feeds extends to Cardano native tokens (CNTs). When asked about the possibility of including ADA/CNT pairs in the price feeds, Vahid stated that “adding ADA/CNT (Cardano native token) pairs are absolutely on our roadmap. A lot will depend on what projects require from us.”
What’s Next for Orcfax?
Currently, Orcfax utilizes federated mainnet price feeds and will soon transition to an incentivized testnet phase. Following this, Orcfax will introduce Decentralized Mainnet Feeds, enabling anyone to become a validator by staking FACT tokens, the native token of the Orcfax protocol. The final phase of Orcfax’s roadmap will introduce Decentralized DAO Governance to the oracle protocol.
FACT Token Performance
FACT is currently down over 22% in the last week as presale investors and ISPO participants take profits. FACT has a current market cap of $1,684,527 and a diluted market cap of $10,667,713, placing it at spot #38 in the top 50 tokens on TapTools. The token has 1.04K holders, with the holder count seeing an increase of 9.13% in the last week.
@CardanoFeed - Follow us on X (formerly Twitter)
Stay informed with the latest $ADA Cardano news in real time.FOLLOW NOW!