DeFi oracles, explained

DeFi oracles, explained

The oracle problem and latency are the major risks of running oracles on a blockchain.

The oracle problem arises due to a trust conflict that centralized third-party systems bring to smart contracts and blockchain systems that are decentralized. Because the data provided by oracles is directly fed into smart contracts, which function based on this data, it’s evident that oracles hold hierarchical power in the execution of the smart contracts. Due to these immense implications, it’s critical for DeFi apps and protocols to have oracles with reliable data and little or no latency. 

Broadly, oracle solutions can be classified into two categories: fast but insecure, and secure but slow. The first category mainly applies to decentralized oracles, as they have low latency rates. Due to a vulnerability to various game theory attacks, a majority of DeFi applications run on centralized or semi-centralized oracles.

Most decentralized oracles use the ShellingCoin mechanism, wherein independent sources report the data without coordinating with other sources. Due to the absence of this contact, these sources/agents report “true” data to the best of their capabilities while expecting other sources to do the same. This mechanism is vulnerable to various problems such as collusion between parties, signaling and even bribing. And in the event of a hacker attacking the data feed, known as a man-in-the-middle attack, there is no retaliation mechanism in place. Even a single incorrect value can have significant consequences for the applications relying on the oracle.

Centralized oracles fall under the “secure but slow” category. When pitted against decentralized oracles, these oracles are robust with elements of game theory. They utilize manual voting and “dispute rounds” to overcome attacks that attempt to manipulate their data. But because these methods entail longer wait periods, sometimes lasting weeks, DeFi applications are often discouraged from using them as their oracle of choice. However, despite their protection against game theory attacks, they possess counterparty risk and leave a higher chance of effective hacks due to a single point of failure, decreasing the security of DeFi applications in this particular regard.

Source: cryptoareas.com

Author: by admin


Leak: iPhone 12 Pro LiDAR Placement for AR Capability Confirmed

Leak: iPhone 12 Pro LiDAR Placement for AR Capability Confirmed

A peak at the back of the case now confirms previous rumors that the iPhone 12 Pro will have a LiDAR camera for better augmented reality.

The well-known leaker and YouTuber ‘EverythingApplePro’ has leaked out the chassis of the upcoming iPhone 12 Pro. The video doesn’t show the whole phone, just the chassis of the smaller 6.1-inch model with a LiDAR placement can be seen:-

Here it is! Official iPhone 12 Pro chassis leak. Confirms mostly same camera with new LiDAR placement, flat sides, magnet cutouts & smart connector-like 5G antenna? This seems to confirm the 6.1 Pro model will get LiDAR too. October can’t come soon enough. pic.twitter.com/YifSX7SWxh

— EverythingApplePro (@EveryApplePro) September 11, 2020

So far, it was rumored that the LiDAR scanner was only reserved for the iPhone 12 Pro Max. The fact that both Pro models now have AR capability installed shows a serious effort on the part of Apple to embrace augmented reality. The iPad Pro 2020 is already integrated with LiDAR scanners with airborne laser scanning. Many developers are already experimenting with its capability in conjunction with iOS 14.

The iPhone is not the first to incorporate a LiDAR sensor. In its Project Tango, Google tried to implement the technology in Android smartphones but failed. The Tango flop was partly due to Apple’s pressure with its purely software-based implementation of augmented reality, ARKit, which somehow relegated Google’s hardware-based implementation to obscurity. The Google Tango smartphones also offered users no added value compared to the conventional smartphones from the leading brands. It, for example, lacked entertainment and other common and useful AR apps. Devices such as the Zenfone AR were at best, just nice tech demos.

According to previous leaks, the LiDAR sensor leverages time-of-flight data in order to accurately measure the distance from the sensor to objects. This feature can be deployed into multiple users. It can for example help users create better-looking portraits. It also helps you realize better auto focus as well as better low-light performance. The LiDAR tech will also have a huge impact on the AR capabilities of iPhones and help power the growing augmented reality iPhone apps.

Apple is now proving that it can master both the hardware and the software aspect of AR implementation better than Google and actually has a clear vision for smartphone AR. We could see some new reveals on September 15th when new products will be presented during an Apple event.

That event is dubbed “Time Flies” which likely insinuates the time-of-flight technology that works in conjunction with the LiDAR scanners to measure a room in 3D. Apple has even designed invites to the event with an AR effect.

Irrespective of the successes of the LiDAR technology in both iPhone and iPad, Apple will likely test the new technology with the aim of integrating it into possible Augmented Reality glasses. The test production is reportedly already in progress.

The iPhone 12 Pro is set to launch in October.

Source: virtualrealitytimes.com

Author: Sam Ochanji


Investing in DeFi? Bet on diversification, not short-term gains

Investing in DeFi? Bet on diversification, not short-term gains

The decentralized finance space has grown exponentially over the last few months, to the point where more than $9 billion worth of crypto assets were locked in its protocols before crypto prices started dropping. The space had a little over $500 million locked in back in September 2019.

This exponential growth in the last few months appears to be mainly related to a yield farming trend that started when lending protocol Compound began distributing its COMP governance token to users who interacted with the protocol.

Put simply, yield farming — or liquidity mining — allows DeFi users to generate rewards with their cryptocurrency holdings by interacting with protocols that distribute governance tokens. Farming yield can be a profitable venture on its own, but the tokens being farmed often see their price surge as well.

One of many examples of this is YFI, the governance token of Yearn.finance, a site that helps users find the best yields in DeFi protocols. Over the last 30 days, YFI is up more than 400%.

Yield farming isn’t simple, however, and rewards rarely go up in a straight line. It’s also not a practice that’s suitable for all crypto holders since it generally requires holders to pledge large amounts of capital in order to earn more rewards. Moreover, in the decentralized finance space, there are various risks that aren’t immediately clear.

One risk associated with yield farming that most people seem to neglect is the very nature of smart contracts. Popular DeFi protocols are developed by small teams with limited resources, which can increase the risk of smart contract bugs and vulnerabilities. Even well-known audited protocols have been hacked.

The smart contract risk is very real and could end up costing a lot of people money. One famous case is that of Yam Finance (YAM), a DeFi project that saw users lock in over $500 million worth of crypto assets on it before a bug that was discovered made it impossible for the community to reach a quorum.

While the creators of Yam Finance did warn users that their smart contract was unaudited, the pursuit of short-term gains saw users lock in over half a billion dollars in it — even though the protocol’s token was not listed on top exchanges — before tragedy struck.

As data shows, after the YAM token hit its high, it crashed from around $100 to $1 in a single day. And now, the tokens are now worth $0.02.

Other risks are related to the inherent volatility of cryptocurrencies and to the intentions of those behind DeFi protocols. SushiSwap, a popular decentralized exchange modeled after leading DEX Uniswap, is a clear example here.

SushiSwap is an exchange that does not work with an order book but with an automated market-making, or AMM, model. This model sees liquidity providers add funds to liquidity pools. It differs from Uniswap thanks to the SUSHI token, which entitles holders to the project’s governance and rewards them with a portion of the fees traders pay.

It was created by the pseudonymous developer Chef Nomi and in just over a week, saw users lock over $1.27 billion worth of crypto assets in Sushi contracts. Chef Nomi, however, decided to cash out a stake of SUSHI tokens for over 38,000 Ether (ETH), leading some to believe it was an exit scam.

The result was a price drop of over 70% for SUSHI, which fell from over $5.3 to $2.3 in less than 20 hours.

Our responsibility to DeFi’s sustainable growth

Chef Nomi ended up giving his admin keys to FTX CEO and Sushi investor Sam Bankman-Fried, who worked on the protocol before announcing he was transferring it to a multi-signature format so no single entity can control the platform.

I offered to help in a bid to support the development of the DeFi space.

4) And, I would like to support #DeFi by volunteering as a multisig key holder for $SUSHI.

The development of #DeFi is a big event to the entire crypto industry. Despite the flaws in its development process, it’s our responsibility to help it grow.https://t.co/FassdTqbBM

There is also a better, more sustainable way of gaining exposure to the wonders of DeFi while ensuring you don’t lose all your money to a bug or human error.

Diversification is very often recommended by investors because not “putting all your eggs in one basket” helps ensure you don’t lose everything to scams, unexpected market moves or technical issues, and invest in potential gems while it’s still early.

The components of a DeFi portfolio are up to individual investors. Doing your own research is highly recommended before investing in any crypto asset — or any asset for that matter. A portfolio that invested only in some of the biggest DeFi projects and Ethereum would have likely been affected by YAM’s collapse and the SushiSwap situation but would also benefit from YFI’s growth.

To help you create a portfolio that will let you gain exposure to DeFi, OKEx has created a DeFi tokens tab where you can now access 35 different tokens related to different protocols.

Users can also margin and swap trade a variety of DeFi tokens on the OKEx platform, enabling them to execute strategies to maximize profits while hedging their trading risks. All these different tools allow traders and investors to take advantage of the gains to be had in this growing space while ensuring that any unforeseen event doesn’t see them getting wrecked.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Jay Hao is a tech veteran and seasoned industry leader. Prior to OKEx, he focused on blockchain-driven applications for live video streaming and mobile gaming. Before tapping into the blockchain industry, he already had 21 years of solid experience in the semiconductor industry. He is also a recognized leader with successful experience in product management. As the CEO of OKEx and a firm believer in blockchain technology, Jay foresees that the technology will eliminate transaction barriers, elevate efficiency and eventually make a substantial impact on the global economy.

Source: cryptocurrencyinvestments.com

Author: by admin


Investing in DeFi? Bet on diversification, not short-term gains

Investing in DeFi? Bet on diversification, not short-term gains

The decentralized finance space has grown exponentially over the last few months, to the point where more than $9 billion worth of crypto assets were locked in its protocols before crypto prices started dropping. The space had a little over $500 million locked in back in September 2019.

This exponential growth in the last few months appears to be mainly related to a yield farming trend that started when lending protocol Compound began distributing its COMP governance token to users who interacted with the protocol.

Put simply, yield farming — or liquidity mining — allows DeFi users to generate rewards with their cryptocurrency holdings by interacting with protocols that distribute governance tokens. Farming yield can be a profitable venture on its own, but the tokens being farmed often see their price surge as well.

One of many examples of this is YFI, the governance token of Yearn.finance, a site that helps users find the best yields in DeFi protocols. Over the last 30 days, YFI is up more than 400%.

Yield farming isn’t simple, however, and rewards rarely go up in a straight line. It’s also not a practice that’s suitable for all crypto holders since it generally requires holders to pledge large amounts of capital in order to earn more rewards. Moreover, in the decentralized finance space, there are various risks that aren’t immediately clear.

One risk associated with yield farming that most people seem to neglect is the very nature of smart contracts. Popular DeFi protocols are developed by small teams with limited resources, which can increase the risk of smart contract bugs and vulnerabilities. Even well-known audited protocols have been hacked.

The smart contract risk is very real and could end up costing a lot of people money. One famous case is that of Yam Finance (YAM), a DeFi project that saw users lock in over $500 million worth of crypto assets on it before a bug that was discovered made it impossible for the community to reach a quorum.

While the creators of Yam Finance did warn users that their smart contract was unaudited, the pursuit of short-term gains saw users lock in over half a billion dollars in it — even though the protocol’s token was not listed on top exchanges — before tragedy struck.

As data shows, after the YAM token hit its high, it crashed from around $100 to $1 in a single day. And now, the tokens are now worth $0.02.

Other risks are related to the inherent volatility of cryptocurrencies and to the intentions of those behind DeFi protocols. SushiSwap, a popular decentralized exchange modeled after leading DEX Uniswap, is a clear example here.

SushiSwap is an exchange that does not work with an order book but with an automated market-making, or AMM, model. This model sees liquidity providers add funds to liquidity pools. It differs from Uniswap thanks to the SUSHI token, which entitles holders to the project’s governance and rewards them with a portion of the fees traders pay.

It was created by the pseudonymous developer Chef Nomi and in just over a week, saw users lock over $1.27 billion worth of crypto assets in Sushi contracts. Chef Nomi, however, decided to cash out a stake of SUSHI tokens for over 38,000 Ether (ETH), leading some to believe it was an exit scam.

The result was a price drop of over 70% for SUSHI, which fell from over $5.3 to $2.3 in less than 20 hours.

Our responsibility to DeFi’s sustainable growth

Chef Nomi ended up giving his admin keys to FTX CEO and Sushi investor Sam Bankman-Fried, who worked on the protocol before announcing he was transferring it to a multi-signature format so no single entity can control the platform.

I offered to help in a bid to support the development of the DeFi space.

4) And, I would like to support #DeFi by volunteering as a multisig key holder for $SUSHI.

The development of #DeFi is a big event to the entire crypto industry. Despite the flaws in its development process, it’s our responsibility to help it grow.https://t.co/FassdTqbBM

— Jay Hao @OKEx (@JayHao8) September 6, 2020

There is also a better, more sustainable way of gaining exposure to the wonders of DeFi while ensuring you don’t lose all your money to a bug or human error.

Diversification is very often recommended by investors because not “putting all your eggs in one basket” helps ensure you don’t lose everything to scams, unexpected market moves or technical issues, and invest in potential gems while it’s still early.

The components of a DeFi portfolio are up to individual investors. Doing your own research is highly recommended before investing in any crypto asset — or any asset for that matter. A portfolio that invested only in some of the biggest DeFi projects and Ethereum would have likely been affected by YAM’s collapse and the SushiSwap situation but would also benefit from YFI’s growth.

To help you create a portfolio that will let you gain exposure to DeFi, OKEx has created a DeFi tokens tab where you can now access 35 different tokens related to different protocols.

Users can also margin and swap trade a variety of DeFi tokens on the OKEx platform, enabling them to execute strategies to maximize profits while hedging their trading risks. All these different tools allow traders and investors to take advantage of the gains to be had in this growing space while ensuring that any unforeseen event doesn’t see them getting wrecked.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Jay Hao is a tech veteran and seasoned industry leader. Prior to OKEx, he focused on blockchain-driven applications for live video streaming and mobile gaming. Before tapping into the blockchain industry, he already had 21 years of solid experience in the semiconductor industry. He is also a recognized leader with successful experience in product management. As the CEO of OKEx and a firm believer in blockchain technology, Jay foresees that the technology will eliminate transaction barriers, elevate efficiency and eventually make a substantial impact on the global economy.

Source: crytonow.com

Author: adminhttps://crytonow.com


Bitcoin Analyst Says XRP Will Annihilate Almost Every Other Altcoin – Here's Why

Bitcoin Analyst Says XRP Will Annihilate Almost Every Other Altcoin – Here’s Why

A contrarian investor known in the industry as CryptoWhale believes that XRP eventually will wipe out nearly every other altcoin.

In a new tweetstorm, CryptoWhale tells his 34,000 followers that XRP will be one of the last coins standing once the crypto industry enters a new phase of regulatory scrutiny and acceptance.

The only project in the entire market that is pushing for Crypto Regulations is $XRP.

They know that once these regulations are added, it will completely annihilate almost every other altcoin, and make XRP’s demand skyrocket.

— CryptoWhale (@CryptoWhale) September 8, 2020

The crypto investor highlights that while other coins are booming, Ripple is quietly doing the work behind the scenes to ensure that its native token complies with the requirements of government agencies.

CryptoWhale is not all talk as he says he’s looking to purchase more XRP once the correction is over.

“I’ve been involved with XRP since 2013, and let me tell you. There’s a reason it’s always held its spot in the top 3-5.”

As for those who have written off XRP, Crypto Whale offers the big picture.

“People often hate on XRP because it hasn’t ‘moved up for 2.5 years’

1. This time range is so tiny in the investment world. Be patient.

2. XRP is up more than 10,000% since 2014.

3. Has steadily held its position as top 5 coin for several years.”

The crypto investor also says he understands why XRP has so many haters.

“The boom in 2017 undeniably resulted in a large chunk of investors buying in at the top. These losses have subsequently turned many into haters. I always encourage people to do their own research and not only like/hate something due to emotions.”

For now, Crypto Whale believes that the correction will persist but he will notify his followers once he thinks XRP and Bitcoin (BTC) have carved a bottom.

Source: dailyhodl.com


DeFi oracles, explained


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