Price Oracle
A Price Oracle is a mechanism that supplies accurate and up-to-date price information to blockchain-based applications. It collects data from various sources, applies algorithms to verify its reliability and precision, and transmits it to the blockchain.
A price oracle is an essential component of many decentralized finances(DeFi) applications as it provides accurate price data for various cryptocurrency pairs. By providing this data, Price Oracle ensures that decentralized applications can function seamlessly, facilitating reliable and secure transactions.
Why use Price Oracle?
Price Oracle enables decentralized applications to retrieve accurate price data from multiple sources, providing the most up-to-date and reliable information to ensure that transactions are processed accurately and securely. Without a reliable Price Oracle, DeFi applications may be vulnerable to inaccuracies, potentially leading to financial losses for users.
How does the Price Oracle work?
The Price Oracle works by collecting data from various sources, processing it through algorithms to ensure accuracy and reliability, and transmitting it to the blockchain. It uses a network of nodes to collect data from various sources, including traditional financial institutions and cryptocurrency exchanges. The data is then processed through algorithms to ensure its accuracy and reliability before being transmitted to the blockchain.
Currently supported Price Oracle
ThirdFi currently uses Chainlink Price Oracle service to support a wide range of cryptocurrency pairs across multiple networks, including Ethereum, Polygon, Binance Smart Chain, Arbitrum, Avalanche and Optimism. It currently supports price data for multiple cryptocurrency pairs such as BTC/USD, ETH/USD, and BNB/USD, as well as lesser-known pairs.
How to use Price Oracle WebSocket
WebSocket provides full-duplex communication channels over a single TCP connection. It enables real-time communication between a client and a server without requiring the client to constantly pull the server for updates. WebSocket is designed to be implemented in web browsers and web servers but can be used by any client or server application.
With the WebSocket Price Oracle, users can obtain real-time, bidirectional communication between a client and a server over a single TCP connection. This feature allows users to get the current price of various cryptocurrency pairs without requesting the API again and again, thereby improving efficiency and reducing latency.
Developers can easily integrate the ThirdFi Price Oracle WebSocket into their decentralized applications, enabling them to retrieve the latest price data and execute transactions on the blockchain based on that data.
The websocket event is triggered whenever Chainlink Aggregator Event is updated.
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