The rise of DeFi in 2020 has spurred a huge wave of growth in the blockchain industry, which is exemplified in the exploration of possible blockchain applications that has gone deeper from on-chain to off-chain data.
The blockchain industry has long been hindered by the limitations of smart contracts being unable to interact directly with outside systems. This is where blockchain oracles come into play.
What is a Blockchain Oracle?
Simply put, an oracle is a one-way digital proxy that can query and verify data from the real world and relay the encrypted data to smart contracts. However, most oracles on the market now are centralized, which exposes corresponding smart contracts to the risk of a single point of failure and compromising the benefits promised by their decentralized nature.
JustLink: The First Official TRON Network Oracle Project
JustLink is a decentralized oracle project developed by JUST Foundation. JustLink is the first decentralized blockchain oracle on the TRON network that can safely feed smart contracts with real-world data, including but not limited to lending prices, stablecoin exchange rates, derivative prices, market estimations, etc.
JustLink is the answer for Chainlink on the TRON network. The timing of its launch could not be better as it meets the demands that TRON-powered smart contracts have for external data, which liberates the entire TRON ecosystem.
For developers, JustLink is a safer and more convenient option to deploy a wider variety of DApps (decentralized applications). For TRON, as the ecosystem is to expand exponentially, JustLink will further fuel the growth of TRON-based projects.
JustLink Powering JST: Connecting the Real with the Virtual
JustLink takes it as its mission to bridge the gap between the real world and the digital one and to connect the virtual space and reality. As an essential component of the JUST ecosystem, JST is the pricing pool for JustLink to interconnect different use cases and ecosystems. JustLink powers JST in a great number of ways.
1. Margin Penalty System
JustLink introduced a margin mechanism to curb node dishonesty. In a centralized oracle model, users can hold private enterprises in check, but there should still be safety measures to ensure nodes act faithfully. A certain amount of JST tokens must be reserved as margin so that the node can receive and process a data request. If the data of the node is found to be abnormal, the margin will be taken away and refunded to the data requester as compensation. JustLink utilizes game theory to motivate nodes to provide accurate data, otherwise, the nodes will be fined.
The margin system of JustLink has increased the market needs for JST and brought more possibilities for JST use cases. The value of data can be calculated more accurately with JST rewards and punishments.
2. Ecosystem-Powered Synthetic Assets
The most prevalent use case of oracles is the price feed system, which features synthetic assets as the most important application. Oracles allow smart contracts to understand data outside the platform, and DeFi protocols use these data to determine which assets can be taken as collateral. JustLink makes up for TRON’s weakness in this field: As the first decentralized oracle on TRON, JustLink will leverage its stable TRON-based energy cost model and superior transaction processing capacity to give birth to more types of synthetic assets in a short time. This is also expected to drive up the demand for JST applications to keep the price fair.
TRON Founder & BitTorrent CEO Justin Sun says, “JustLink is the Chainlink equivalent on TRON, whose birth marked a pivotal milestone for TRON’s ecosystem. JustLink will drive a new round of boom in TRON-powered DeFi applications, which will further benefit and reinvigorate the entire TRON ecosystem. It’s fair to say that JustLink is an epoch-marking project that’s bound to revolutionize the whole DeFi sector.”