The team over at Charli3 have a long record of making winning Catalyst proposals look easy, but when you consider what they've delivered so far, it's worth every $ADA. With another win under their belt in Catalyst round 8, we thought it might be a good idea to take a closer look at what their team is delivering.
What Is An Oracle?
Second generation blockchains have introduced smart contracts that allow for much more complex and conditioned transactions. With smart contracts, participating parties can define transactions via specific on and off-chain parameters.
However, blockchains alone cannot access this required off-chain data. We use the term oracle to define a service that provides off-chain data to on-chain smart contracts. Put simply, an oracle acts as a bridge between the real world and blockchain by providing trusted and reliable off-chain data streams.
The current oracle landscape is dominated by Ethereum-based oracles, that is, oracles that operate on (or with) the Ethereum blockchain. Oracles with Ethereum backbones are unfortunately limited by the inherent restrictions found in the minting process on the Ethereum blockchain. Newly minted blocks can only process ~15 transactions per second leading to congestion and long wait times during times of heavy chain traffic.
This congestion has led to users paying increased fees just to push transactions through. As more users adopt Ethereum-based solutions, we have seen a meteoric rise in transaction fees. In a direct response to the scaling issues plaguing Ethereum, Cardano (ADA) was developed as a quicker, inexpensive, and more secure blockchain infrastructure.
Cardano is also one of the only Blockchain projects that has been built via a peer-reviewed and researched-based approach. For an oracle built on Cardano this means the backbone of its network is built on a trusted, open-source foundation adding another layer of trust for users.
Charli3 is the first decentralized oracle network for the Cardano blockchain. By being native to Cardano, Charli3 aims to avoid the notable issues with flexibility, scaling, and growing transaction fees seen with Ethereum-based oracles while also building its foundation on a trusted network.
What Is So Special About Charli3?
Cardano has a substantially steeper learning curve than its second-generation counterparts and native projects can currently only be serviced by a Cardano native oracle. Nearly all De-Fi applications and games will need Oracles for secure function, that's where Charli3 comes in.
Not only that, there are functional benefits to choosing a native oracle (speed, trust, security, validity, cost), and Chari3 follows the ethos of Cardano being fully decentralized and non-exclusive.
In a conversation with Crypto Magazine the team at Charli3 state: "It's our goal of being in the top 10% of the leading oracles within a year of the Vasil hard fork. This usage would invariably result in extreme positive adoption for our token"
Following their Catalyst wins in rounds 7 & 8 the team have dedicated to providing free community price feeds for the 5 most common trading pairs in an effort to 'bootstrap' new projects, reducing the barrier to entry and helping advance smaller Cardano development teams.
What Does The Future Hold For Charli3?
To improve node trustworthiness, Charli3 plans to optionally allow nodes to stake C3 when providing data, as a proof of stake gesture for high-reliability data feeds. This allows for stake slashing in case of malicious data feed, but not all feeds will require staked C3 to operate.
It's clear the team at Charli3 has a long and proud track record of delivering quality tech for the Cardano blockchain - and there's no doubt that if they keep up the good work they'll cement their position as a cornerstone of Cardano De-Fi development.