Algoracle, the next-stage Oracle solution, ready to power the Algorand ecosystem
The Algorand ecosystem has seen unprecedented levels of adoption. The network is becoming increasingly popular as investors look for a sustainable and cost-efficient alternative to the expensive and slower blockchains.
Algoracle, a project created to provide Algorand with a native oracle service, was created to drive ecosystem expansion. This can only move forward by connecting its decentralized applications (dApps) to the real world.
Algoracle facilitates this process by providing the network with a decentralized bridge to connect smart contracts with real-world data. This service is critical to the expansion of any blockchain-based ecosystem.
Data from Token Terminal indicates that Ethereum, one of the largest networks in terms of dApps numbers, saw an explosion in its monthly revenue. This growth was recorded from April 2020 when it was below $1 billion to the current $14 billion.
The main driver for this growth has been the adoption of the decentralized financial (DeFi) protocols and non-replaceable tokens (NFTs). Conversely, these dApps need an oracle service to work, offer a product or use case, process transactions and get more users on board.
Simply put, without oracle there is no growth. At its annual peak, Algorand saw no fewer than 1.8 million active addresses. These users will support the next era of network adoption, but they need the tools and services that make it possible. Algoracle is the bridge that will make it possible.
Algoracle can enable a new generation of use cases
Unlike competing services, Algoracle uses Algorand’s unique consensus algorithm. Called Pure Proof-of-Stake (PPoS), it allows Algoracle to operate as a fully decentralized service without the limitations of a traditional oracle.
In that sense, Algoracle is a step forward for Oracle as it can provide newer and more complex dApps with a native Verifiable Random Function (VRF) mechanism. This improves the performance, efficiency, scalability and uptime of the oracle.
Algoracle and the VRF mechanism features will enable the service to power a new branch of use cases. For example, smart contracts can receive data and their improved infrastructure allows them to send data to the real world.
That way, a user can get notifications from their NFT marketplace, receive or send data on a decentralized exchange (DEX), and more. It is the next generation in DeFi and smart contract interaction. This allows dApps that work with Algoracle to communicate and potentially support cross-chain transactions.
Algoracle supports countless projects on Algorand
In the past year, Algoracle has collaborated with Brave New Coin, Kaiko, Nomics, AlgoGuard, Equito Finance, Glitter Finance and many others. Their partnership with Glitter Finance has enabled them to power their DeFi services consisting of a monetization solution, cross-chain bridge and cross-chain NFT marketplace.
This demonstrates the importance of an oracle solution to the Algorand ecosystem and its vast array of use cases. When the partnership was announced, Glitter Finance founder and CEO David Dobrovitsky said:
Glitter Finance’s technical team, in collaboration with Algoracle’s technical team, have developed new innovations that will significantly improve and change the way blockchain and cross-chain bridges work and enable much greater sturdiness and stability for the Glitter Protocol. to make (…) .