Flare Network: Can It Compete with Chainlink?

Oracles play a vital role in blockchain. They connect real-world off-chain info into on-chain data we can use. RWA projects need it. Traders need it. DeFi needs it. And others do too. And the best oracles are in a constant state of continuous improvement and adding more partnerships and integrations. So many, that it’s hard to keep track.

Today, we look at 3 top oracles, including Flare Network. We look at how they differentiate as well as the improvements they are making so they can stay in the leading positions they have now. So let’s see what’s new with top oracles.

Flare Network ($FLR)

First up, we have Flare Network. Their primary goal is to use blockchain to move data wherever you want. That includes on-chain and off-chain, as well as between different chains. This means it has features in common with bridges and with oracles, too. All while being an EVM Layer 1 blockchain.

Their oracle is the FTSO or Flare Time Series Oracle. Flare uses its validators as data providers too. This lets them offer decentralized time series data. Time series is stuff like crypto or stock prices. A specific price at a specific time.

We caught up with Flare co-founder Hugo Philion at Token 2049 in Singapore and asked him a few questions. See the video below.

Q1: What is missing in Web3 preventing hyperadoption?

As Hugo says, the lack of interesting apps that are useful to people is the key here. And he mentions ease of use, too. Yet, we all know that if the app is worth using then people will learn how to use it even if there is a learning curve there.

Hugo makes a great point about the cost of storing data on Layer 1 chains today. He says that would make creating a blockchain version of Instagram impossible. Nice insight there.

Q2: What Are You Building?

Here, Hugo talks about people being able to access data anywhere. This includes their over-collateralized bridge. Over-collateralized means more than a 1:1 ration when you bridge. It means extra security and confidence that when you bridge back your Bitcoin or DOGE the coins are there for you to use as you see fit.

The off-chain compute is Flare’s solution to the Instagram problem he presented earlier. Much of that computation and storage can happen off-chain. Then you use blockchain for what it does best, as a distributed network.

Then he mentions how to use AI to make using and accessing blockchain easier. And on the other side of this, if we can use blockchain to make AI data more decentralized, then that’s a win as well.

Q3: What Are Your Favorite Web3 products?

Hugo mentions DeFi, including protocols like AAVE and prediction markets. Both have their potential.

He also mentions some Flare Network ecosystem projects like:

• Lending market Kinetic
• DEXes SparkDEX and RainDEX. RainDEX in particular allows for the programming and creation of custom trading strategies. This is pretty cool for advanced traders.

Don’t miss where Hugo talks about one of the hottest sectors in the industry. He’s not sold on its benefits and how it beats legacy solutions. Check all that out on the website.

Flare’s native $FLR token is available on many of your favorite exchanges. Go take a look if what you’ve seen interests you in learning more.

Pyth Network ($PYTH)

Pyth Network ($PYTH) is another of the leading oracles. Measured by market cap on CoinGecko, it takes the second spot, behind Chainlink.

Pyth concentrates on financial data. It’s very active in DeFi. The current market leader, Chainlink, covers a much broader range of areas. So, Pyth is much more specialized.

Now, some key factors for oracles are their speed and cost. So, when we look at speed, Pyth is one of the faster oracles around. Its price feeds update every 300 ms. On Solana, it is every 400 ms. Chainlink, on the other hand, updates around every hour on Ethereum.  On Solana, that’s every 5 seconds. And remember, Pyth runs on Solana, plus another 75+ chains. Chainlink is available on around 20 chains. Here’s a comparison list between Pyth and Chainlink.

Pyth also uses first-party data providers. Most other oracles use third-party providers. So, Pyth gets its information straight from the exchanges or other financial institutions. Other oracles use data aggregators like CoinGecko or CoinMarketCap. 

Let me also say something about cost. Solana is not only faster than Ethereum, but it’s also much cheaper. As a result, Pyth also has the upper hand here. It can offer faster and cheaper services than Ethereum based oracles.

During September, Pyth saw, among others,

• 12 new integrations
• 3 new data providers added
• 2 new blockchains integrated

Source: Pyth charts

New STaking on Pyth Network

There’s also a new set-up for staking your $PYTH and earning rewards. Already 237K $PYTH has been distributed as rewards. The new set-up is Oracle Integrity Staking (OIS). You can get rewards and take part in governance. 

If we look at the current $PYTH price, it’s 30 cents. It has a market cap of $1 billion. However, it only has 36% of its tokens in circulation. That’s 3.6 billion out of a max of 10 billion. Each year on 20th May it has a massive unlock, for another 3 years. So, that is not that great. Its ATH was $1.20, so that’s a 4x from here.

Chainlink ($LINK)

It’s hard to talk about oracles and not talk about the undisputed leader, Chainlink.

The biggest recent news for Chainlink is so big, we are doing an entire video on this topic next week. It’s Chainlink partnering with SWIFT for cross-border transfers using crypto payment rails. And it is a big, big deal.

It is impossible to overstate how big a deal this is. Anyone who has tried to send money to someone in another country, regardless of currency, knows how big a pain this is. And they know this is one of the first places where crypto crushes legacy competitors with product-market fit. And Chainlink’s oracles are the longest-operating in the market.

More stablecoins are hitting the market too. This is also good for Chainlink. Many like this one in HK are using Chainlink’s service to show proof of reserves. Since it’s a centralized stablecoin like USDT and USDC, they need it. 

Solv Protocol has a wrapped Bitcoin product. It is using Chainlink’s CCIP or Cross-Chain Interoperability Protocol. They will be able to move assets including SolvBTC across chains. 

It seems like every week, Chainlink has one of these announcements. Yet, the $LINK token seems undervalued at $6.6 billion.

If you like 

• what oracles do as blockchain infrastructure 
• or you are high on new stablecoins 
• or RWA projects, 

then $LINK needs a serious look as an addition to your portfolio.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.

We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. This article has been sponsored by Flare Network.

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