The Pyth network — a decentralized data oracle — went live last Friday. The network launched on the Solana blockchain and will support DeFi projects on the chain.
Pyth will do this by collecting data on conventional markets as well as cryptocurrencies and digital assets, and by aggregating the data on the blockchain to be used for other crypto projects such as smart contracts.
In crypto-speak, the Pyth network is an “oracle,” a bridge between a blockchain and real world data.
Data partners will send their data directly to Solana nodes for aggregation by Pyth, meaning that the network will be able to provide more trustworthy data than other third-party aggregators.
Pyth’s data will also be more accurate. Mike Cahill of Jump Trading told Coindesk last week that price updates on Solana will occur every 400 milliseconds. By comparison, Ethereum oracles update prices on the network every 10–15 seconds.
Data on Pyth will be free, with the potential for monetization. Monetization would be up to Pyth governance, about which there are few details at the moment.
According to Pyth spokespeople and Pyth’s website, a white paper will be released soon with details on Pyth governance.
Although Pyth is based on Solana, it plans to integrate interoperability protocols that will allow it to support the Ethereum blockchain, the Binance Smart Chain, and Terra.
Support for Pyth is already widespread. According to Pyth’s website, twenty trading firms, exchanges, and market makers have already partnered with the network as data providers.
These first-party providers include Solana blockchain backer and crypto exchange FTX, high frequency trading firm Jump Trading, European digital asset investment firm CoinShares, and Bitso, the largest crypto exchange in Latin America.
Pyth has continued to garner support since its launch. Market-maker firm Jane Street joined Pyth on Monday.
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