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Dialogue with cross-chain oracles SupraOracles: How to use Layer1 consensus algorithm to protect the authenticity of data

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SupraOracles strives to bridge the gap between traditional capital markets and the Web3.0 ecosystem.

On January 20th, Joshua D. Tobkin, co-creator and CEO of the cross-chain oracle SupraOracles, had an online communication with users, using the term "Oracle How to make the blockchain better?" as the theme. He introduced the core technology of SupraOracles, its advantages over other oracle machines on the market, and explained the sources of data sources and the future development of the platform.

SupraOracles strive to bridge the gap between traditional capital markets and the Web3.0 ecosystem. Designed to provide the developer community with a novel set of oracle tools so that they can easily create, deploy, and manage data applications with superior performance, robustness, and agility.

The following is the text version of this online conversation

Rhythm BlockBeats: Could you please give a brief self-introduction? Why did you focus on the field of oracle?

Joshua D.Tobkin:Hi, it's a pleasure to be a guest today, I'm SupraOracles.com Co-founder and CEO Josh. I previously worked in SaaS for over 10 years, working at several startups in San Francisco involved in content digital rights management and food supply chain.

In 2018, my co-founder and I created a crypto R&D lab called Unity Chain. We looked at a lot of different blockchain related topics, from Layer 1 consensus algorithms, vrfs (Verifiable Random Functions), and even how IoT and blockchains work. We also propose some solutions for projects that raised significant funding through ICOs in 2017 but were unable to build their own technology. This is how we survived the crypto bear market.

Actually, we were initially deeply involved in Layer1 scalability research, but around November 2020, we discovered that there is a huge problem with Oracle (oracle) manipulation in DeFi, and we think DeFi is awesome However, the frequent occurrence of hacking attacks caused by such manipulation and insecure implementation of oracles is a big problem preventing DeFi from becoming mainstream.

So we've decided that solving this problem is the biggest contribution we can make in the industry. This is also an important problem that needs to be solved urgently.

We solve this problem very well, because we have deep research on Layer 1 consensus algorithms, and we also have a lot of experience in oracle, Internet of Things and on-chain randomness research.

We think we can use insights from our Layer 1 research to solve the oracle problem. Our mission statement is to secure the oracle layer using Layer 1 consensus security principles to ensure that any data we bring into the blockchain has the industry's strongest guarantees of data correctness.

Rhythm BlockBeats: What core technologies are used in this project?

Joshua D.Tobkin:We use a lot of advanced technology. Our core technologies include:

-Layer1 consensus algorithm based on vrf (verifiable random function)

-We use BLS12 encrypted threshold signature

-Erasure Codes and "Matrix Chatter" - a new kind of data we are inventing Propagation protocol, which is very robust and efficient for disseminating data in our network to reach consensus.

- There are other encryption techniques that allow us to scale while maintaining fast determinism.

We organize nodes into small committees called "tribes" - tribes collectively form large tribal groups.

We are working with Dr. Aniket Kate (of DKG fame) to create a new DKG (Distributed Key Generation) primitive. This nested structure of tribes and tribes gives us amazing security and performance benefits.

Rhythm BlockBeats: There are actually many other oracle machines on the market. What is the difference between Supra Oracles and the current leading project mechanism? What are the advantages compared to other oracles on the market?

Joshua D.Tobkin:We have communicated with many projects, about 400 at this stage. The guarantee of data correctness is the most important. Then there is the update speed of the oracle. We are 100x more secure than other solutions, while also being more decentralized and faster in terms of update rates.

We expect the data update speed to be around 2-3 seconds, and the time here refers to the final completion speed. Some projects say they update data every 0.5 seconds, however, the data is not finalized within 10-15 seconds! Therefore, the data is actually not available until it is completely determined.

Safety is the most important aspect. Next is the refresh rate. We have completely eliminated central points of failure, and we have a very good online reliability guarantee.

Furthermore, we position ourselves as a cross-chain oracle. This means we can also facilitate cross-chain communication and guarantee the same level of security and reliability as oracle services. We expect to be more than 100 times more secure than other existing solutions.

Let me also mention...we are also working with the DeFi Insurance project - we will back all our oracle services with insurance pools. We serve projects not only with algorithmic security guarantees, we also have financial guarantees in the worst-case scenario — oracle failure, which should basically never happen. Nonetheless, incorporating insurance into our services will ensure our clients have the confidence that no matter what - even in extreme circumstances - they will be taken care of.

Rhythm BlockBeats: The oracle machine seems to be the monopoly of Chainlink. What do you think is the reason why Chainlink can monopolize it?

Joshua D.Tobkin:I think it's due to the first mover advantage. In fact, many blockchain developers don’t realize that they can’t achieve what they have in mind without the help of oracles. They usually realize this in hindsight - they actually need the oracle to do what they want.

With the recent growth of DeFi, it has finally become more apparent that the oracle layer needs to provide the same security and assurance of activity as the underlying blockchain.

Now that more and more people are paying attention to this issue, developers realize that the old Chainlink model is not as strong and stable as the security of the blockchain layer, so the oracle layer is the weakest link that can be attacked. I think there has been oracle manipulation and front-running on Chainlink and other oracle platforms, it's just not widely known or exposed yet. On SUPRA, we intend to solve this problem.

Rhythm BlockBeats: The most important aspect of the oracle is the application. How to ensure that Supra Oracles will gradually attract more partners?

Joshua D.Tobkin: Interesting that projects are willing to consider using SUPRA, especially as they move to other chains. Even if they are using other oracle.

They were very excited when they heard about our data correctness guarantees, reliability guarantees, insurance plans, and stable fees, because oracle exploitation and manipulation is still a big problem in this space. Every project needs to be served provably fair, and very fast. This is the meaning of SUPRA,

Rhythm BlockBeats: Where does real world data come from? How to ensure that the data source used is correct?

Joshua D.Tobkin:It depends on the type of data. For example, for cryptocurrency data, we connect directly to over 20 exchanges like Coinbase, Binance, Huobi, and data aggregation partners like Kaiko and Coinmetrics.

Each tribe is randomly assigned to these data sources every 10 minutes. In the final calculation, we included 15 of the 21 data sources to arrive at the final value. For each data pair we serve, we use the median of the reported data on the data source, and the final result we publish is the median of at least 15 reported medians out of 21 reports. This is very secure and it protects us from extreme or erroneous data reporting.

Rhythm BlockBeats: How does Supra Oracles ensure the security of nodes? Is there any strategy?

Joshua D.Tobkin:SupraOracles is a PoS system. Nodes must obtain our Token and stake it to join. Access to our oracle feed data requires a small fee, which is paid to our oracle nodes.

Furthermore, we randomly organize nodes into tribes. On each data source, tribes conduct a round of consultation on the data they report. These data reports are then aggregated at our block producers, who have to wait for 15 out of 21 reports from our randomly dispatched tribes that have reached consensus on each of their data sources.

This approach is very resistant to collusion and deception. If the tribe is caught cheating, they are punished.

Rhythm BlockBeats: Does Supra Oracles currently have a token plan? If there is a plan, what is the Token economy expected to look like?

Joshua D.Tobkin:Yes, there will be a Token issuance plan. By the way, there are already people creating fake websites claiming to be us without publicity.

Our public sale is probably around April. The best way to know this information is to follow our official platform, as follows: https://supraoracles.com/whitelist-invite-blockbeats/

Rhythm BlockBeats: Can you share your future plans for Supra Oracles?

Joshua D. Tobkin: There are many, we have many projects we are working on that will be announced in the next few months! SUPRA is more than just an Oracle. We are actually a high-throughput Layer 1 using native oracle. But for the time being, only you know and I know.

Also, we're talking to folks at MasterCard, Citibank... and other large organizations, both crypto and non-crypto. More on this in the coming months!