Though you can execute a few of them based on the on-chain data, a majority of these smart contracts will require a lot of data to be fed in from several other reliable sources that do not belong to the specific network.
This is when you will need to use one of the best crypto oracle projects.
This is the most effective and popular technological mediator to the centralized world.
These oracle projects will enhance the prospects of DeFi movements by furnishing more accurate and verifiable data.
This will help the smart contracts to execute properly and effectively by transforming all data available off-chain into a more accessible format.
This, in turn, will establish the relevance as well as the value of the smart contract. If the data furnished is wrong it will:
- Result in wrong implementation
- Loss of value of the smart contracts and
- Make it difficult to correct an error of the source.
It is therefore essential to use the best oracle projects to ensure that there is a perfect balance of transparency and governance.
- 7 Best Crypto Oracle Projects
- 1. Chainlink – Best Overall
- 2. BAND Protocol – Incentivizes the Users
- 3. DIA – Provides a Fair and Balanced Financial Ecosystem
- 4. Tellor – Creates a Simple System
- 5. API3 – A DAO Controlled Project
- 6. Nest Protocol – More Transparent and Better Calculation Methodologies
- 7. DOS Network – More Focus on Computational Power
7 Best Crypto Oracle Projects
However, the first thing that you should do to use one of the best crypto oracle projects is to choose one from the many available out there. It will be difficult if you do not know exactly how you can do that.
Though it may seem that all of them are similar, in fact, there are a few specific and interesting outliers as well. Check out Best Ways to Keep Crypto Safe.
This list includes the top seven crypto oracle projects that will help you to validate your mechanism as well as incentivize with a pledge to precision, decentralization, and transparency.
Chainlink is probably one of the best crypto oracle projects that you will find as of now. This is more of intermediary software than an oracle project which will help you in different aspects of crypto trading such as:
- It will efficiently transfer all relevant data from an off-blockchain platform to an on-blockchain smart contract.
- It will reduce the chances of errors occurring due to the use of a solitary centralized platform.
Chainlink is one of the leading oracle providers in this industry with a very large ecosystem that comprises more than 100 software based firms and 50 blockchain projects.
This oracle project is on the brink of forming a new ATH pretty soon with its high potential. There is no doubt that the LINK price reached as high as $19.1 by mid 2020 in spite of its slow start with a price of just $2.264.
With a few ups and downs in the price in 2021, it is stagnant now and hovering around $11.
According to the experts, the asset is supposed to reach new heights very soon to reach anywhere between $23 and $24.35.
By the third quarter of 2021, it is expected to reach $30 and by the end of the year it will surely reach $44, or more. Down the lane, this can even cross the $100 mark by 2025.
2. BAND Protocol – Incentivizes the Users
BAND Protocol is also one of the best oracle projects that you may consider to use. This is actually a cross-chain oracle. This specific oracle project comes with several potentials such as:
- Ability to aggregate the smart contracts
- Ability to connect an external data source
- Ability to connect API and most importantly
- Ability to incentivize the users.
This software is specifically designed to do it all in a much more scalable manner to benefit all those users who supply real-world data to the dApps or Decentralized Applications operating on blockchains.
This oracle project initially operated on the Ethereum blockchain but in due course of time it has made the best use of the COSMOS technology to create its own blockchain.
The role of a Validator is quite significant in BAND Protocol. A Validator is the one who holds the maximum number of BAND tokens.
They typically check the transactions made and then add them to the blockchain. Performance is the key factor here and tokens that are not performing or underperforming may be rectified or even confiscated.
When it comes to the price of BAND, it experienced a huge surge in 2020. The price went up to $16 which is quite significant considering the fact that it was less than a dollar initially.
However, in January this year, the price slid down and hovered around $9 but it is expected to rise significantly very shortly.
According to the experts, its price is expected to reach anywhere between $15 and $17 by the third quarter of this year and double by the end of it.
By 2025, the price may go as high as $250 and may even cross the $300 range.
3. DIA – Provides a Fair and Balanced Financial Ecosystem
Decentralized Information Asset or DIA is an open-source platform to gather all relevant financial information.
This Swiss-based non-profit platform uses the crypto incentives to gather all data and validate them as well and works as an oracle platform for the ecosystem of Decentralized Finance or DeFi.
The primary objectives of this platform are:
- To provide access to its users to the crowd-verified financial data
- To enable a fair and more balanced financial ecosystem and
- To provide a more secure, transparent, verified market info and data.
Right from the very beginning, DIA has made the most notable impression in this industry with its price being over $2. However, this was very short-lived and it failed to reach higher mark cashing even below that level.
By the end of this year, it is expected to rise and hover around $3 but by the end of 2025 it has the potential to reach over and above $15, experts say.
4. Tellor – Creates a Simple System
Tellor is another decentralized oracle project but with a difference. In this system, the PoW or the Proof of Work miners are allowed to obtain data by competing against each other and place them on-chain in order to create smart contracts.
This platform in fact creates a very simple system where different entities can place the price of off-chain information. On the other hand, the miners here are allowed to add all of the necessary and relevant information on the on-chain platform.
This platform uses its native currency, TRB. These tokens can be used to offer rewards and incentives to the miners.
The process is simple and involves depositing the TRB tokens initially to start the mining process.
This enables proper governance and faster dispute resolution. This will eventually help in the voting process to ensure validity of the data and information.
The price of TRB at the moment is quite high and is around $27.26 ensuring an increase of 10%.
The experts however suggest that this price will soon cross $40 and by the end of this year it will be more than $100. And, by 2025 the experts expect it to cross $230.
5. API3 – A DAO Controlled Project
This DAO-governed crypto oracle project will help in creating APIs for the Decentralized Applications. These are commonly called dAPIs.
Using this oracle project you can avail a varied range of benefits such as:
- It will allow you to set up, insure, manage, and monetize in a more scalable manner.
- It will help you to create and use a more transparent and effective method to collaborate The APIs of the different providers of data to blockchains.
- It will also help you to combine different oracle nodes operating as well as the operators without requiring any middleman for that.
Since the dAPIs are based on blockchain, operating is much easier and it will ensure good returns in the end. The facts and figures related to API3 make it one of the most profitable investment options.
Different expert analysts and active traders suggest that users can expect to have a long-term increase in its price.
They say that within the next 5 years its price can increase up to $32.261 and the potential revenue in return to the investment would be a little less or more than 432.09%.
6. Nest Protocol – More Transparent and Better Calculation Methodologies
Though self-claimed, Nest Protocol is an oracle network which is the first one that produces price data on-chain and at the same time verifies the same.
The best part of it is that every data point is created as agreed upon by the Validators in the market. These data points are in accordance with the mechanism that is based on a blockchain consensus.
These data points are much more accurate and reliable because it uses a highly decentralized method while synchronizing the off-chain price. This enhances the validity and makes the data on-chain more real.
Apart from this exclusive differentiator, there are also a few notable features that make this new kid on the block much different from other crypto price oracle projects. These are:
- It is more transparent in terms of its sources
- It implements much more effective and result-driven calculation methodologies.
No wonder it has made a much more significant impact in the industry as compared to its peers and has gained a lot of attention from the experts in the oracle market.
Already a partner with HBTC exchange, the idea as well as its operating process are both very intriguing.
This has helped it to make an impact beyond the Chinese market.
However, to get a stronger foothold in the global market, it has to fortify its English language support, which is quite patchy as of now, with the use of a few better translation services.
7. DOS Network – More Focus on Computational Power
Decentralized Oracle Service or DOS lays more emphasis on its computational power. His network however follows its unique mission of:
- Enhancing blockchain usability
- Provide real world and more accurate data and
- Better its computational power.
It typically works on mainstream blockchains and is far more decentralized, crypto incentivized and chain atheist.
With its features and improved functionality, DOS provides the best solutions as the most prominent players in this market.
However, computational power is what separates it from the others, to which the network has a seemingly limitless supply.
The accuracy is ensured by their unique approaches which includes confirmation and substantiation by using data redundancy method.
The crypto oracle projects specialize in assessing and validating the roadmap and will help you to select the right time to invest via an authentic platform.
The list above will surely help you in selecting the best crypto oracle project for you.