The emergence of DeFi in 2020 has sparked a massive surge of growth in the blockchain industry, as seen by the research of possible blockchain applications that have moved beyond on-chain data to off-chain data. The inability of smart contracts to interface directly with external systems has long been a stumbling hurdle for the blockchain sector. This is where blockchain oracles enter the picture.
What is a Blockchain Oracle?
Simply put, an oracle is a one-way digital proxy that can query and validate real-world data before relaying the encrypted data to smart contracts. However, most oracles now on the market are centralized, putting smart contracts at risk of a single point of failure and jeopardizing the benefits promised by their decentralized nature.
TRON Network Oracle Project: JustLink
JUST Foundation has created JustLink, a decentralized oracle project. JustLink is the TRON network’s first decentralized blockchain oracle that can reliably feed smart contracts with real-world data, such as loan pricing, stablecoin exchange rates, derivative prices, market estimations, and so on.
On the TRON network, JustLink is a response to Chainlink. Its release couldn’t have come at a better time, as it addresses the need for external data in TRON-powered smart contracts, freeing the entire TRON ecosystem.
JustLink is a safer and more convenient way for developers to deploy a broader range of DApps (decentralized applications). JustLink will let TRON-based projects flourish even faster as the ecosystem grows exponentially.
JST: Connecting the Real and JustLink Powers the Virtual.
The goal of JustLink is to bridge the gap between the virtual and real worlds. JST is the pricing pool for JustLink to interconnect various use cases and ecosystems as part of the JUST ecosystem. JustLink fuels JST in a variety of ways.
Margin Penalty System
To prevent node fraud, JustLink implemented a margin mechanism. Users can hold private firms accountable in a centralized oracle model, but there should still be safeguards to guarantee nodes perform honestly. A fixed quantity of JST tokens must have allocations as a margin to allow the node to receive and process data requests. Consequently, if the node’s data is judged to be anomalous, the margin will be deducted and compensated to the data requester. JustLink employs game theory to incentivize nodes to supply accurate data; if they don’t, they’ll be penalized.
JustLink’s margin mechanism has improved market demand for JST and expanded JST use cases. Moreover, the data value may be calculated more precisely with JST rewards and punishments.
Ecosystem-Powered Synthetic Assets
The price feed system is the most common application of oracles, with synthetic assets being the most important. Smart contracts can also interpret data outside of the platform thanks to Oracles. DeFi protocols utilize this information to determine which assets can be collateral. Moreover, JustLink compensates for TRON’s shortcomings in this area. Also, as the first decentralized oracle on TRON, JustLink will use its stable TRON-based energy cost model and higher transaction processing capability to produce new sorts of synthetic assets rapidly. This also projects to increase demand for JST applications, allowing the pricing to remain competitive.
JustLink is TRON’s Chainlink analog, according to TRON Founder and BitTorrent CEO Justin Sun, whose birth represented a crucial milestone for the TRON environment’s ecology. Furthermore, it will kickstart a new wave of TRON-powered DeFi applications, benefiting and revitalizing the TRON ecosystem. JustLink is, without a doubt, a watershed moment in the DeFi industry.
Accordingly, JUST is TRON’s first DeFi project, intending to create a TRON-based stablecoin lending platform. It’s the first project on LaunchBase Poloniex will sponsor, which is the world’s largest digital asset exchange platform. It ranks in the top three in terms of trading volume.
JUST uses a dual-token method. The first token, USDJ, is a stablecoin tying to the US dollar 1:1. It is by pledging TRX on JUST’s CDP. JST, the other token on JUST, pays interest, maintains the platform, votes in governance, and runs various campaigns.
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