NEST Oracle Machine: Create a Turing-style data box on-chain

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Insights from Computing Pioneers: From Turing to Blockchain Oracle Machine

In the summer of 1954, the founding father of computer science, Alan Turing, committed suicide by poisoning at his home in Manchester, England. This hero who deciphered the German military codes during World War II ended his legendary life in a tragic way. To commemorate this great scientist, the highest honor in the field of computer science is named the "Turing Award."

Turing once envisioned a magical box that could continuously provide data for computers. In centralized systems, data input is not difficult, but ensuring data authenticity and preventing human intervention has become a technical challenge. This concept aligns perfectly with the pursuit of "information authenticity" in the Blockchain field.

With the booming development of decentralized finance ( DeFi ), "Oracles" that provide price data for DeFi products have gradually become mainstream. Various oracle projects are flourishing, among which NEST Protocol creatively places the price formation process on the Blockchain, forming "actual prices" through user participation in "quotation mining" and arbitrage games, thus avoiding the trust costs associated with off-chain processes.

The NEST protocol provides generous token incentives for quoting "miners". Users participating in quoting trading pairs such as ETH-USDT can earn NEST tokens or nTokens, and share in ETH earnings weekly. This mechanism is as simple and reliable as Bitcoin mining, and shares similarities with the currently popular "liquidity mining", providing ample incentives for participants.

The NEST Protocol has completed the entire process of the Oracle Machine on-chain, making it an ideal form of Oracle Machine. Compared to traditional Oracle Machines that rely on off-chain node networks, NEST directly conducts gaming on-chain to form "price facts", significantly reducing trust costs.

In the NEST system, "price facts" are mainly generated by two types of participants: quoting miners and validators. Quoting miners deposit token pairs into the contract according to market conditions and pay a fee. The quotes will be publicly displayed for a certain period for challenges; if there are no arbitrage opportunities, they are considered reasonable prices. Arbitrageurs can correct unreasonable prices through trading and need to provide larger quotes for subsequent challenges.

This mechanism can effectively prevent price manipulation, forming "price facts" entirely on the Blockchain. As the scale of funds increases, the cost of malicious quoting will become extremely expensive. Compared to trusting off-chain data from certain nodes, prices formed on-chain have more decentralized characteristics.

The NEST token also has functions like regular dividends, playing a more important role in the new version. Comparing horizontally across the entire track, the potential of NEST has yet to be fully realized. With the booming development of the DeFi sector, NEST is expected to become the preferred solution for more projects.

The token economic model of NEST provides multi-faceted incentives for ecological participants, expected to stimulate the prosperity of the secondary market and become a long-term stable investment target. In addition to the incentives during the data generation phase, NEST has also designed a unique dividend mechanism for token holders to encourage more people to participate in ecological construction.

According to historical data analysis, the valuation of the NEST token could be 23-33 times the current price. Compared to cryptocurrencies that lack cash flow support, the steadily growing quotation returns of NEST provide strong support for its price. In addition, the design of the nToken system also gives NEST the possibility of "infinite deflation."

Compared to the simple "traffic" information Oracle Machine, NEST's path to forming "price facts" on-chain is more challenging. However, in the choice between "trusting data" or "trusting facts", NEST provides its own answer. As the ecological scale expands, NEST is expected to create a winner-takes-all situation in the Oracle Machine track.

There is a saying in the crypto community: "Don’t trust, verify." The NEST network is a practitioner of this philosophy. In the process of building a "perfect" pricing system, NEST always assumes that it is facing the most lies and the greatest malice. Only when real on-chain information can still be formed in such a harsh environment can it be considered an excellent Oracle Machine system.

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CountdownToBrokevip
· 07-17 05:57
Looking forward to the handsome guy To da moon
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HodlTheDoorvip
· 07-17 05:54
Nest has potential.
View OriginalReply0
FlashLoanKingvip
· 07-17 05:52
The Oracle Machine is really great
View OriginalReply0
ChainWanderingPoetvip
· 07-17 05:50
Turing changed the worldview
View OriginalReply0
Blockblindvip
· 07-17 05:37
NEST opens the era of prophecy
View OriginalReply0
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