DIA Grantee Spotlight: The Importance of Robust Data Sourcing for Oracles

Decentralized Information Asset (DIA), a blockchain oracle platform, is designed to bring transparent, trustless, and verifiable price data to decentralized finance (DeFi) ecosystems. By leveraging Kadena’s unique braided chain architecture, DIA provides communication channels between off-chain data sources and on-chain smart contracts. As a Kadena grantee, DIA’s core vision is to build the future of data integrity and availability for various decentralized applications (dApps) and financial institutions.

What are Oracles?

Oracles serve as a communication bridge for data between the outside world and blockchains. They provide smart contracts with real-world data by obtaining information from IoT devices, databases, or other blockchains. Oracles are also widely used in DeFi to provide context for price feeds, represent real-world assets on-chain, or even provide weather data for on-chain agreements. DeFi oracles bridge the gap between decentralized networks and the external world, - ensuring that smart contracts operate with accurate, real-time data.

Use Cases

DIA unlocks several use cases across EVM, WASM, and many other environments, including delivery of price data to over 50 different L1 and L2 blockchains.

Traditional Finance

Financial institutions, from banks on Wall Street to financial service providers in Silicon Valley, can benefit from utilizing DIA as the platform delivers access to high-quality data for trading, risk management, and investment analysis. DIA delivers data value by adding transparency and verifiability to decision-making.

dApp Development

Developers building DeFi dApps require reliable real-time data. DIA’s library provides data for over 20,000 digital assets, real-world assets (RWAs), contract states for bridges, and liquid staking protocols. Advanced tools are also available to create and monitor data feeds.

Data Sourcing on DIA

Rather than aggregating third-party sources, DIA obtains first-party data from nearly 100 different sources, such as exchanges, financial institutions, and data providers. DIA’s unique aggregation strategy helps to ensure comprehensiveness while significantly reducing the risk of manipulation and data inaccuracies.

In a recent interview on Beyond the Block with Kadena’s Head of Partnerships, Ryan Levy, the DIA team discussed its approach to data sourcing and oracles. They explained how its model pulls data directly from centralized and decentralized exchanges. By using this approach, DIA can capture volume and liquidity depth, thus providing a more robust view of the data than more one-dimensional oracle architectures in today’s market.

DIA’s data-sourcing flexibility makes it perfect for various use cases across different financial industry sectors. This ensures that the platform can cater to specific needs—whether an AMM provider, LP, or OTC desk.

In addition, their decentralized community governance model empowers stakeholders to take ownership of the DIA platform by actively participating in the decision-making process.

Node Architecture of DIA’s Decentralized Oracles

Unlike most oracles, which are centralized, DIA operates through a wide variety of nodes capable of performing various tasks. They can fetch, validate, and deliver data directly to Pact smart contracts —- this enhances security by reducing the risk of a single point of failure.

Furthermore, it ensures that the provided data is trustworthy and verifiable. These advantages make DIA more robust and reliable than traditional Web3 oracles.

Transparent and Auditable Data: Verify then Trust

The data DIA collects is fully transparent and auditable and can be traced back to its origin. Traceability and transparency enable you to verify the accuracy of the oracle’s data, which enhances trust in the information. Their commitment to transparency is fundamental to the platform’s unique oracle design, which addresses a critical gap in many existing solutions.

Dive into DIA on Kadena

DIA stands out for how it sources data, drawing from various exchanges, financial institutions, and data providers. This ensures comprehensiveness while significantly reducing the risk of manipulation and data inaccuracies.

DIA’s decentralized oracles operate through various nodes, fetching, validating, and delivering data directly to smart contracts, while enhancing security and ensuring trustworthiness and verifiability. DIA’s platform supports numerous data services, including digital asset price feeds and financial data, catering to many use cases across different financial industry sectors. With its community governance model, DIA empowers stakeholders to participate actively in decision-making, fostering a sense of ownership and involvement.

DIA's commitment to transparency and auditability further enhances trust in its data, making it a robust and reliable solution for financial institutions and dApp developers.

DIA chose Kadena because of the human readability of Pact smart contracts. In turn, DIA’s presence in the Kadena ecosystem enables any DeFi project on Kadena to access auditable and transparent data from various sources. In other words, DIA’s existence on Kadena will benefit any other Kadena DeFi project because the data will be more consistent and reliable–from financial services to RWAs to DEXs. In the short term, DIA will help the supply price feed for DeFi projects, but in the long term, there is no limit to the potential institutional players that can benefit from using DIA’s oracles.

Learn more about DIA by visiting their website!