Flux is launching on Solana — Flux: the trust-less data layer
Integrating Flux Protocol unlocks a wide range of features and functionality on Solana.
While financial contracts have traditionally been negotiated and executed by humans, smart contracts represent the next generation of financial products. They address the inefficiencies and risks of traditional instruments by automating transactions, agreements, and functions. With the total value locked growing from $700 million to over $13 billion in the span of a year, these decentralized financial products’ reliance on secured and reliable data sources cannot be overstated.
Data manipulation is rapidly becoming the primary source of most exploits in the industry. Rather than attacking the blockchain directly, these attacks target the middleware layer that connects smart contracts to external data sources, providing a channel for a rogue operator to manipulate data exposed through this layer. In 2020, $100 million was estimated to be lost to price oracle and flash loan attacks — 2021 has quadrupled this figure.
Any node relaying information on the blockchain needs to reach consensus with every other node on the network before the data can be added to the blockchain. Performing computations on data that exists outside of the blockchain or even most smart contracts is not possible. To be able to access external data, blockchains need to integrate oracle services.
An oracle is a source of truth that sits outside the blockchain ecosystem. It aggregates and provides reliable data for smart contracts to execute their functions. For example, an oracle can provide the current value of USD in FTT for a smart contract to calculate the value of a trade. A trusted oracle service is critical to making smart contracts work in real-world applications. A secure data feed is necessary to guarantee that smart contracts behave as designed. Blockchains alone are not sufficient to establish trust.
With the recent $314 Million raise and its public commitment to power mainstream DeFi adoption by onboarding a billion users, Solana has become one of the fastest-growing, Layer 1 blockchain ecosystems.
Scalability is an issue for any blockchain. As these networks grow, they often face limitations in transaction speed and confirmation times before throughput is reached. Solana has leveraged its technical superiority as a fast and high throughput blockchain to become a major ecosystem builder in the DeFi space.
“We’ve engaged with many teams building on the Solana ecosystem and are always amazed by the talent looking to enhance the experience of the traditional DeFi legos to builders who are aiming to utilize the competitive edge afforded by the Solana base layer to build new, innovative products. From early builders in the Solana ecosystem such as Raydium, Hedgehog, and Cope to name just a few, we see there is a clear product-market fit for Flux in the Solana ecosystem and will enable even many more products to be built on top.”
Niteesh, Head of Ecosystem at Flux.
The growth of DeFi platforms on Solana has not only caught the eye of the industry, but also the attention of the mainstream market. As the mainstream market continues to manifest its intention to embrace DeFi, Solana is increasingly becoming one of the leading candidates for such. To help power this drive, Flux Protocol is proud to announce its integration on Solana.
Powering a Free and Fair Economy
Flux is a trustless, decentralised oracle aggregator that re-engineers the way data is gathered, curated, verified and rewarded. By allowing users to decentralize their data source and oracles, Flux Protocol eliminates the single oracle problem that continues to be a lucrative target for manipulators.
“We are thrilled to be building in the fast-paced and exciting Solana Ecosystem. Flux will bring fast, reliable, and economically secured data to Protocols on Solana to power use cases across lending, stablecoins, derivatives, prediction markets, NFTs, and more.”
Peter Mitchell, Cofounder of Flux Protocol
Flux Protocol is building open-source and decentralised infrastructure for efficient, transparent, and secure interaction between smart contracts and external data services. Leveraging a modular and upgradable design philosophy, it provides developers with the tools necessary to meet the demands of today’s rapidly evolving blockchain landscape.
Integrating Flux Protocol on Solana unlocks a wide range of features and functionality for developers enabling the creation of market mechanisms like liquidations, derivatives pricing, and settlement in financial markets. This creates a smooth direct channel for on-boarding valuable traditional assets.
“Solana’s low latency infrastructure will enable Flux to power a new range of mainstream capable use cases. With Flux’s oracle aggregation product, protocols and apps built on Solana can source all data streams in one secure place from a diverse range of oracles and data providers
Jasper De Gooijer, Cofounder of Flux Protocol
Originally published at https://www.fluxprotocol.org.