On Oracles

The future according to XYO

Even though we aren’t experiencing the global adoption bull-run we may have wanted in 2022; we see extensive innovation and recognition. The industry is innovating quickly, whether it is legal regulation, a faster and more scalable network, or a potential blockchain interoperability solution. Today, we are here to talk about the XYO network ($XYO) – a network that claims to be the world’s first Reality Oracle.

What is an Oracle?

An “oracle” acts as a bridge between blockchain networks and the real world. Oracles will be an extremely beneficial tool within the ecosystem. They will enable decentralized networks to access and consume external information, such as data from central banks or public companies. This technology acts as a third-party service that allows communication and integration between blockchains and the outdated legacy systems currently in use (which have never been able to interact with newer systems). In essence, if a network can create an oracle that can successfully operate on a global scale, it could be the missing puzzle piece in creating an entirely data-driven, connected world.

Who is XYO?

XY Labs launched the XY Oracle (or XYO) network in May 2017. On the front page of their website, it says, “Introducing the world’s first Reality Oracle.” Knowing the potential impact this could create in the blockchain ecosystem; we had to fact-check this claim. When looking at XYO Network’s top 15 competitors in its sector, their claim seemed to be true. But, in almost all sectors of life, the first generation of technology doesn’t automatically make it the best (and, in our case, the most highly adopted solution). What the XYO network does not put on its website is that Chainlink Labs launched its oracle solution less than 30 days later, which is currently the most widely used oracle network in the blockchain ecosystem. Usually, competitors in a business are considered a threat — but not in this scenario. Instead, the XYO network partnered with Chainlink Labs to improve interconnectivity between data and blockchains by providing seamless data and chain-to-chain integration.

Along with this favorable partnership, the XYO Network has also shown continuous system improvements. On February 28th, 2022, they unveiled their next generation of technology, XYO2.0. This update allows experienced and inexperienced developers to set up an XYO cloud service and participate in a seamlessly connected worldwide digital economy. This technological improvement helps blend familiar legacy systems (such as APIs and SDKs) with complex blockchain systems. The protocol is designed to improve data validity, reliability, and value, as their solution could help build a global data-driven marketplace.

What does this mean?

Oracles (or a similar concept) will play a vital role in creating an efficient ecosystem within blockchain technology. It is apparent that blockchain technology improves how the world can collect and record information, but that does not eliminate the fact that 99+% of information in the world is currently stored outside of the blockchain ecosystem. The success of XYO Network (or likewise projects) will increase the likelihood of mass adoption, as it will empower the current outdated legacy systems to integrate, communicate, and enhance their system proficiency in a blockchain structure. We want this sector (Oracle tokens) to win, whether it is XYO Network, Chainlink, Band Protocol, or DIA. Whoever succeeds within this industry sector will be playing a significant part in connecting blockchain networks to the “real world.”

FINAL THOUGHTS:

XYO Network was the first network to provide an oracle, or at least the first to be realistically implemented. With a recent network upgrade, a partnership with the sector’s industry favorite (Chainlink: $LINK), and an extraordinary amount of network growth in 2021, the XY Oracle network should be a project that is on your watchlist. Not for an investment opportunity – but instead, because of their mission. Their protocol and intended solution could effectively solve a problem that is currently diminishing blockchain technologies’ ability to onboard current information and data stored throughout the outdated but popular legacy systems used today. Oracles (or similar solutions) will be the superglue for connecting and integrating the current, real-world data with the new and upgraded blockchain system we all love.

If we want to see enhanced blockchain efficiency, we should all be cheering for enhanced interoperability.

Published by Dr Martin Hiesboeck

Futurist, Marketer, Policy Advisor for Companies and Government Head of Blockchain and Crypto Research at Uphold and CEO of Alpine Blockchain Consultants Zurich - London - New York - Taipei

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