Pyth Network: Leading the Way for Blockchain Oracles

6 views 8:04 am 0 Comments February 7, 2024

Pyth Network, a growing blockchain oracle project, has rapidly become the go-to real-time data source for blockchain applications across 50 blockchains. As a trailblazer in the world of oracles, Pyth Network is working to change how data is accessed and used within the blockchain space.

Pyth Network changes how blockchain oracles work. Instead of looking for free data to scrape, it goes right to the source, and makes the data available. With a process that is simple and transparent, Pyth is making the blockchain space better for everyone.

Why Blockchain Oracles Matter

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Oracles are an important technology in a future where blockchain applications rely on data from the outside world. At the moment, it can be hard for blockchains to know what is ‘true’ in the real world.

Off-chain data enables blockchains to be accurate. Early oracle networks were confronted with some critical issues, including latency and fragmentation across several chains.

The Pyth Network was established to fix all the problems with blockchain oracles. It is working to resolve the oracle issue for DeFi (Decentralized Finance) and developing the most reliable real-time data feed found anywhere in the world. A coalition of trading businesses and exchanges initiated it, and still support the project.

The network was first established with donations from prominent trading businesses and cryptocurrency exchanges. Since then, it has grown to include numerous trading firms, cryptocurrency exchanges, DEXs (Decentralized Exchanges), and TradFis (Traditional Finance) exchanges.

Pyth Network has become a comprehensive source of low-latency pricing data. Because of this, it now serves over 300 decentralized applications (dApps) across fifty blockchains.

Pyth Network’s Unique Proposition

The dynamic nature of data is why Pyth Network matters. Pyth Network solves the problem of more data on the internet becoming private or paywalled. It does this by offering owners of proprietary real-time data an incentive to broadcast it to the blockchain in exchange for payments.

In contrast to other approaches in the oracle space, which involve retrieving data from the public internet, Pyth Network enables data providers to post confidential information directly on the blockchain.

The strategy creates data flow in real time. It reduces the influence of paywalls and restricted data sources, establishing the Pyth Network as a source of truth in the world of blockchain.

Solid Performance

The development of Pyth Network has been smooth ever since the company was first established. It all started on April 7, 2021, when the project laid the groundwork for what would later become a major undertaking.

After that, the release of the Devnet occurred on May 15, 2021, and then on August 26, 2021, this was followed by the release of the Mainnet. Today, the platform is reliable, and offers blockchains access to valuable data in real time.

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A Practical Solution

Pyth Network’s delivery of real time data is popular. The project is used on 50 blockchains and maintains a market share of over 90% on one-third and over 50% on half of them.

Pyth’s capabilities attracted Synthetix, a marquee dApp, which switched from Chainlink to Pyth as its primary oracle in early 2023, leading to explosive growth.

The oracle space is still evolving. With the need for accurate data on blockchains, Pyth is well placed to grow with the blockchain sector. It is well past its proof-of-concept phase. Now, it is attracting dApps from the biggest oracles out there.

The People Behind Pyth Network

Pyth Network has deep talent driving its development. With great people on the team, it is set to change how blockchain oracles work for the wider industry.

Mike Cahill’s extensive background with financial companies, including Morgan Stanley, KCG, and Jump, has positioned him as a leader in blockchain. His ability to foresee trends and adapt to new challenges has been instrumental in Pyth Network’s success.

Jayant Krishnamurthy, an expert in AI with credentials from MIT, Carnegie Mellon, and the Allen Institute, plays a crucial role in Pyth Network’s technical development. His ability to articulate complex ideas and insights makes him an asset at all levels of the project.

Pyth Network has gained support from prominent crypto investors, including Castle Island Ventures, Multicoin Capital, Wintermute Ventures, Borderless Capital, CMT Digital, Bodhi Ventures, Distributed Global, and Delphi Digital.

Empowering Blockchain Applications

Pyth Network has a robust business model built on providing real-time data feeds to blockchain applications. Pyth’s price feeds update once every 400 milliseconds, ensuring DeFi applications have accurate data and enhancing liquidity and competitiveness.

Most of the people in blockchain have a connection to finance. Blockchains live on prices, so the data that Pyth delivers is vital to operations.

Real-Time Data from Real-World Markets
Real-Time Data from Real-World Markets

The project architecture allows instant availability of newly launched feeds on all supported chains, eliminating the need for individual feed setups on different chains. Pyth directly sources data from financial market prices, reducing price tracking errors by 5–10 times compared to competitors.

Pyth Network has a diverse customer base, from blockchain builders who use the network without direct contact due to the protocol’s built-in economics to DeFi applications, decentralized exchanges, and traditional financial institutions.

High-throughput applications, including on-chain derivative exchanges, rely on Pyth for real-time data. Now that Bitcoin ETFs are live on major legacy exchanges, the need for derivatives is set to grow.

Roadmap: Shaping the Future of Oracles

Pyth Network’s near-term plans include expanding services to include on-chain randomness, Bitcoin ETF feeds, and energy price feeds. The project also envisions offering NFT price oracles, improved liquidity oracles, and non-financial data sets in the future.

While the blockchain oracle space is competitive, Pyth Network distinguishes itself by being the only protocol that creates a singular source of truth available equally to all applications via messaging protocols.

Chainlink, one of the most prominent competitors, operates a network of automation nodes that fetch data from the open internet, leading to fragmented data sources and off-chain risks. Pyth Network’s transparent economic model eliminates the need for off-chain payments, ensuring accessibility and reliability.

In the Press: Recognition and Acknowledgment

Pyth Network’s achievements have appeared in major media, and its impact on the blockchain ecosystem is already being felt. Recent press coverage includes articles by CoinDesk, CryptoNews, Forbes, Unchained Crypto, Bloomberg, and Fortune.

Additionally, its PR efforts focus on educating the community, showcasing the team’s thought leadership, and highlighting the project’s unique value propositions and achievements.

The project collaborates with financial institutions, L1s, L2s, large dApps, and Chainlink while positioning itself apart from smaller oracles that can’t compete with its capabilities. People just want blockchains to work. With oracles like Pyth Network, that goal is a lot easier to achieve.

Pyth Network: Shaping the Future of Oracles

Pyth Network is a forward thinking blockchain initiative that offers real-time data feeds to blockchain apps that are running on a variety of different blockchains. Its reach is already global, and it provides conventional financial institutions and decentralized finance apps with high-frequency, low-latency data.

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