Not Your Average Oracle. Welcome Flux Protocol.
Recently, I joined Flux Protocol as an ambassador. I am excited about this new project in the blockchain space and I would love to share more information about it. If you are interested in learning more about what Flux Protocol is, please read on.
When you visit Flux Protocol website, the first description that you will see is “Flux is a cross-chain oracle aggregator that provides smart contracts with access to economically secure data feeds on anything.” Well, for an average user, that does not tell much. Let’s break it down.
First of all, what does the cross-chain mean? Cross-chain means working between independent blockchains. Usually, separate blockchains like Bitcoin and Ethereum can not communicate with each other. Cross-chain technologies allow blockchains to communicate in a standardized way.
Blockchain oracles are special services that provide smart contracts with information from outside. It’s like a bridge between a particular blockchain and the outside world. Stand-alone smart contracts (think a set of instructions to be executed by a blockchain) on a blockchain have access only to the data within it. However, when building smart contracts, we often need additional data other than the one stored within the blockchain, particularly, if we are to make some useful applications. Oracles feed smart contracts with outside world data. For example, imagine we are building a smart contract on a blockchain application that uses stock prices. A blockchain itself does not have access to real-time prices. As such, we would need a layer to provide stock price data to a smart contract so that its execution can work correctly. That layer is called an Oracle.
Last, an aggregator is a program that collects various data and displays it together. Essentially, it combines data from various sources.
Having learned the above, let’s try again to understand Flux Protocol. It’s a service (an Oracle) that combines data from various sources outside of blockchain (aggregator) and provides that data in an economically secure way to smart contracts.
I hope this better explains any complicated wording. In the future, I plan on providing more in-depth material about Flux Protocol. Stay tuned.