The post What is Pyth Network? Beginner’s Guide to This Oracle Protocol appeared on BitcoinEthereumNews.com.

Financial markets produce valuable data like stock prices, currency exchange rates, and commodity prices. This data powers critical financial applications and informs decisions that move billions of dollars. However, high-quality financial data is often only available to institutions like banks and hedge funds. The average person can’t reliably access the data. Pyth aims to change this status quo by making accurate financial data openly available on blockchains. It is a protocol that coordinates various participants to publish frequent price updates on-chain. These price feeds can then power blockchain-based decentralized finance (DeFi) applications. For example, a lending protocol may want to use Pyth’s price feed for Tesla stock to manage loans collateralized by TSLA tokens. Or a decentralized exchange can use Pyth’s ETH/USD price to value trades on their platform. Pyth brings first-party data from financial institutions on-chain. It aggregates this data in a manipulation-resistant way to produce robust real-time price feeds. The openness of blockchains allows anyone to leverage this financial data. This moves us toward the vision of an open, transparent, and fair financial system. The protocol uses economic incentives powered by its native token, PYTH, to attract publishers and maintain high data quality. This beginner’s guide will explain how Pyth works and the key mechanisms that coordinate all its participants. Quick Facts Category Information Goal Make accurate financial data accessible on blockchains Participants Publishers – Provide price data, Consumers – Use price data, Delegators – Help secure data Key Mechanisms Data Staking – Hedging for consumers, Reward Distribution – Incentives for publishers, Price Aggregation – Robust combined feed Attacks Resisted Price Manipulation, Reward Exploitation, False Payout Claims Native Token PYTH coordinates participants through cryptoeconomic incentives Current State Live on Solana, aiming to be a core DeFi primitive Future Roadmap Multi-chain expansion, governance decentralization, new data types Keypoints Pyth…

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Filed under: News - @ November 22, 2023 7:10 pm