As a seasoned analyst with years of experience in blockchain technology, I must say that Flare’s introduction of FTSOv2 is a significant step forward for decentralized data feeds. Having closely followed the evolution of various blockchain projects, I’ve seen many promises unfulfilled, but FTSOv2 seems to be an exception.
On its primary network, Flare – a blockchain specialized for data – unveiled an upgrade to their Time Series Oracle version 2 (FTSOv2). This update enhances the strong base of FTSOv1, which has been delivering reliable, decentralized data streams since its debut two years ago. The goal of FTSOv2 is to optimize speed, capacity, and affordability compared to the initial setup, having maintained a perfect record of zero downtime or malfunctions since its inception.
In Flare’s fundamental design, FTSOv2 plays a crucial role, leveraging the entire network’s economic security for its benefit. This guarantees that each data feed is as secure as the blockchain system, ensuring robustness.
Among the significant improvements in FTSOv2 lies its increased speed and reduced delay. With every fresh block on Flare (approximately every 1.8 seconds), FTSOv2 swiftly updates without compromising decentralization. This swiftness is achieved by having approximately 100 independent data providers backing each feed, chosen by users who delegate their stake. Misconduct carries a strict economic penalty in this system, as it imposes costs on these providers. At present, around 67% of the circulating FLR supply is dedicated to securing FTSO.
FTSOv2 boosted its scalability significantly by accommodating up to 1,000 data feeds across diverse financial markets such as cryptocurrencies, stocks, and commodities. Notably, this enhancement comes at a low cost since all crypto-related queries can be made directly on the blockchain without any charges!
Real-world use case
Speedier data updates on lending and borrowing systems enhance their efficiency by allowing better utilization of collateral and improved risk control. Similarly, derivatives like perpetual futures and options can make use of FTSOv2 to strengthen their risk management strategies and guarantee precise pricing.
Using accurate price information, cross-chain order books can ensure seamless and secure trades among various blockchain ecosystems. Furthermore, this concept could be extended to real-world assets like on-chain interest rates from treasuries, fostering increased collaboration between conventional finance and blockchain innovation.
Under the hood
In simpler terms, FTSOv2 works by employing a tamper-proof random selection method to choose data suppliers every 1.8 seconds. These suppliers then provide incremental, fixed updates to their feeds. To maintain the trustworthiness of these feeds over time, all data providers are subjected to a commit-reveal process every 90 seconds. During periods of significant market turbulence, the system may boost the number of data providers submitting updates to react swiftly to price changes.
For developers aiming to incorporate FTSOv2 into their projects, integration is straightforward with minimal effort. It takes less than 10 lines of code to fetch real-time data like FLR/USD rates. Flare provides valuable resources and support through the Flare Developer Hub, along with a Discord community for continuous discussions and help.
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2024-09-16 17:08