Why the world's largest trader relies on Pyth for blockchain data services

Let's say you buy Tesla shares and you can send them as easily as an email to a friend in Shanghai. Or consider the inflation gamble at the end of Biden's presidency.

Campaigns sponsored by the world's largest corporations and commodities companies often make anything possible.

Developed by Jump Trading Group, a Chicago-based high-frequency quantum trading company, Pyth is a blockchain-based technology service designed to provide free, real-time data for a variety of crypto transactions. It is overseen by the Switzerland-based Pyth Data Association and its affiliates, including e-commerce companies such as Jump, Jane Street Capital LLC, Susquehanna International Group LLP, and Virtu Financial Inc. So far, they haven't weren't able to make any money with Pyth.

Together, the companies after Pyth have traded hundreds of thousands of dollars in assets every day. Earlier this year, they started sending information about the prices of certain commodities, currencies, commodities, and cryptocurrency markets to the Pyth Network.

The data in Pyth is publicly available, and developers around the world can easily connect it by typing in numbers. They can use this information to create new applications in the rapidly growing financial distribution. In practice, DeFi includes the operation of traditional finances (such as business and loan) through software without a centralized management system.

DeFi requires data to complete. You need a service like Pyth here. Pyth developers hope to transform the services of their competitors and become an important financial resource for DeFi operations. The idea is to provide fast and accurate data to complement new existing and encrypted industry mashups.

Proponents say DeFi will wipe out the middle class and benefit non-World Bank citizens by providing banking-like services to all cellphone users. . According to the World Bank, 1.7 billion people do not have access to financial institutions. For example, loan seekers can use the DeFi loan platform. Like banks, these platforms take money from depositors and lenders to lenders. However, it is not the lender who authorizes the loan, but the “smart contract” or computer code which authorizes the transaction.

Mike Cahill, Director of Business Development at Jump European Digital Assets and Director of the Pyth Data Association, said: "

DeFi has experienced tremendous growth. Data from DeFi Llama shows cryptocurrency investors pledged $ 250 billion in assets in various DeFi-based guarantee projects, up from $ 18 billion a year ago. However, there are still a lot of issues with adoption. On the one hand, DeFi is risky. According to data from blockchain analytics firm Elliptic, losses from DeFi theft and fraud have exceeded $ 10 billion this year. Since DeFi deposits are not supported by the government, unlike traditional bank accounts, investors can recover a bit if they are lost by bad investors.

Regulators have yet to establish a clear policy on DeFi. However, some police are calling for better surveillance. U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has said DeFi is illegal, warning that U.S. securities laws apply to digital tokens that track stock prices. This may affect the Pyth file inventory based production process.

Here's how Pyth files are used today: Consider the DeFi lending platform. The borrowers of these platforms need fixed loans, most of which are denominated in digital currencies linked to traditional denominations such as the US dollar. In order to receive a mortgage, a borrower must provide collateral. They often advertise products in a larger denomination than cryptocurrency (like Bitcoin) through a pool of money held by smart contracts. When the price of Bitcoin drops, the smart contract simply removes the ownership. This allows depositors who start giving fixed amounts of money to maintain their financial security.

For all of this to work, the smart card must use a third-party piece of data called an "oracle" to monitor the value of Bitcoin. Oracles enables smart contracts to get the external data they need to trade. Currently, Oracles is typically used to send encrypted invoices, but can deliver everything from inventory invoices to weather data to polls.

Many Oracle organizations collect data from multiple sources and provide it for DeFi operations. The biggest tech oracle is Chainlink, which is said to support more than $ 80 billion in related products with a variety of smart contracts. Data includes PAs that agreed in October to provide information on Chainlink's industry, sports and elections.

Pyth uses free data to distract his competition. For example, unlike Chainlink, Chainlink's oracle needs money to spend. Pyth experts say Pyth has better tools. Since it is based on the fast Solana blockchain, Pyth can update its value every 4/10 seconds. The largest Ethereum blockchain is home to some of the most competitive block games, with an update time of up to 15 seconds. Pyth supporters also say the value of the data is more reliable because it comes from companies with years of experience in the industry.

However, Pyth has been embarrassingly wrong since early August. In September, Solana's native blockchain was extended by 5 hours. A few days later, poor performance caused the Bitcoin price reported by Pyth to drop 90%.

Since Pyth is in its infancy, the impact of events is limited, but this interference can lead to serious illness. Chainlink co-founder Sergey Nazarov said, “If Oracle doesn't do what it's supposed to do, people will lose hundreds of millions of dollars in seconds.

Some companies support Pyth because they want to change traditional business data. The New York Stock Exchange and the Nasdaq make money by collecting market quotes and trading information and selling that information to traders and traders. Vendors like Bloomberg have also profited from the sale of this information on Wall Street. The companies after Pyth are the main buyers of this type of data. They have long complained that they are too expensive, and their businesses shouldn't be affected by the high cost of corporate data when they first create data.

Virtu CEO Douglas Cifu said: "We are all frustrated with this tough business data. It predicts that Pyth will become low cost financial data." Some repackagers and market information distributors have made me do a lot. money. They'll hear the high price tag from Pyth and similar networks. "

Companies like Virtu are now providing data for Pyth for free. However, this service can adapt to the model in which companies profit from their data. Probably a new Pyth digital token.

Other vendors have said they are backing Pyth to support the new development. Ari Rubenstein, CEO of GTS, Pyth's data provider, predicts that DeFi will change the industry, as well as the transition from the switch to electricity in the 1990s and 2000s.

“Pyth is just a building block,” said Rubenstein. "We don't know where it will go, but it will create a lot of different things."