In the rapid development of blockchain technology, oracles play a vital role as an important bridge connecting the on-chain and off-chain worlds. However, traditional oracles have many limitations in terms of speed, asset coverage, and accuracy. In order to solve these problems, Pyth Network provides a new solution through an innovative pull model oracle architecture.
Solve the limitations of traditional oracles
Low-latency, high-frequency price updates: One of the highlights of Pyth Network is its low-latency and high-frequency price update capabilities. The Python application chain can update each price feed multiple times per second. By streaming the data output to Wormhole, users can easily receive the latest data stream through the public API. Compared with traditional push model oracles, Pyth Network's high-frequency updates enable decentralized applications to use the latest off-chain price data in every transaction, which greatly improves the user experience.
Broad asset coverage and multi-chain availability: Pyth Network’s technical capabilities enable it to support thousands of price feeds. Due to the Solana blockchain’s advantages in high throughput and low transaction fees, Pyth Network’s price feed data is available on all Pyth-enabled blockchains. Whenever a new Pyth price feed is released, it is immediately synchronized on all supported blockchains, eliminating the tedious process of deploying separately on each target chain. This makes Python the fastest oracle to push out new price feeds.
High-resolution, high-fidelity, transparent data
Pyth Network ensures price accuracy by sourcing data directly from traditional and decentralized finance data creators. Pyth's data providers are active participants in price discovery and understand the true price of an asset. Pyth Network is also committed to incentivizing data owners to contribute unique price data, thereby producing accurate and representative market prices.
In addition, the aggregation mechanism of Pyth Network is designed to be transparent and verifiable, and users can trace the source of each data point to ensure the reliability of the data. By using tools such as the Solana block explorer and Pyth Publisher Metrics, the public can audit the aggregation and transmission process, enhancing data transparency.
Ecosystems and Governance
Pyth Network's ecosystem encompasses a variety of stakeholders, including data owners, decentralized applications, and individual blockchain participants. On-chain governance is an important part of ensuring the self-sustainability and decentralization of the protocol. Pyth Network's Token Economics mentions that the establishment of a governance structure allows the community to guide the development direction of the protocol.
Governance will be responsible for determining the parameters for update fees, how rewards are allocated to material providers, and how products are listed on Pyth and its references. Through community participation and decision-making, Pyth Network can better adapt to market needs and achieve sustainable development.
Summarize
Contributors to Pyth Network believe that erroneous assumptions about how traditional oracles operate on financial data lead to limitations in latency, asset coverage, and data quality. These problems limit the growth of decentralized finance (DeFi), and Pyth Network's pull model oracle architecture provides an effective solution to these core limitations.
The future price oracle will not only bring price information to the blockchain, but also introduce price owners and creators into the DeFi process. Pyth Network provides solutions that are permissionless, transparent, low-latency, and high-fidelity, capable of scaling as Web3 evolves.
We cordially invite you to join the Pyth Network journey and become a member of the Pythian community. Follow our official social channels to get the latest network developments and announcements, and join our podcasts and keynotes to learn more about the Pyth Network.
Let us look forward to more innovation and changes that Pyth Network will bring to the blockchain world!