Algoracle, a project created to provide Algorand with a native oracle service was created to initiate the expansion of the ecosystem. It can only progress by connecting its decentralized applications (dApps) to the real world.
Algoracle facilitates this process by providing the network with a decentralized bridge to connect smart contracts to real-world data. This service is essential for the expansion of any blockchain-based ecosystem.
Data from Token Terminal indicates that Ethereum, one of the largest networks in terms of number of dApps, has seen an explosion in monthly revenue. This growth was recorded between April 2020, when it was below $1 billion, and its current $14 billion.
The main driver of this growth has been the adoption of its decentralized finance (DeFi) protocols and non-fungible tokens (NFTs). Conversely, these dApps need an oracle service to function, offer a product or use case, process transactions, and onboard more users.
Clearly, without an oracle, there is no growth. At the height of the year, Algorand counted up to 1.8 million active addresses. These users will support the next era of network adoption, but they need the tools and services that will make it possible. Algoracle is the bridge that will make it possible.
Algoracle can enable a new generation of use cases
Unlike competing services, Algoracle uses Algorand’s unique consensus algorithm. Called Pure Proof-of-Stake (PPoS), it allows Algoracle to operate as a fully decentralized service without the limitations of a traditional oracle.
In this sense, Algoracle is a step forward for Oracle as it can provide newer and more complex dApps with a native Verifiable Random Function (VRF) mechanism. This improves Oracle’s performance, efficiency, scalability, and availability.
Algoracle and features of the VRF mechanism will allow the service to power a new branch of use cases. For example, smart contracts will be able to receive data, and their improved infrastructure will allow them to send data into the real world.
This way, a user could receive notifications from their NFT marketplace, receive or send data on a decentralized exchange (DEX), and more. This is the next generation of interaction between DeFi and smart contracts. This could allow dApps powered by Algoracle to communicate and potentially support cross-chain transactions.
Algoracle supports many projects on Algorand
Over the past year, Algoracle has partnered with Brave New Coin, Kaiko, Nomics, AlgoGuard, Equito Finance, Glitter Finance, and many more. Their collaboration with Glitter Finance has enabled them to power their DeFi services comprising a yield generation solution, a cross-chain bridge and a cross-chain NFT marketplace.
This shows the importance of an oracle solution for the Algorand ecosystem and its wide range of use cases. When announcing the partnership, David Dobrovitsky, Founder and CEO of Glitter Finance said:
The Glitter Finance technical team, working in concert with the Algoracle technical team, has developed new innovations that will greatly improve and change the way blockchain and cross-chain bridges work and will allow for much more robustness and stability. large for the Glitter protocol (…).
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