Find New｜Ares: Decentralized Hybrid Oracle

"Find New" is a blockchain project observation project launched by Jinse Finance. It covers the development of projects in various fields of the industry, and the specific design includes project overview, technological progress, fundraising situation, etc., and strives to present you a collection of popular and trendy projects. .  

Ares is a decentralized hybrid oracle that fully implements on-chain and on-chain verification of oracle data. By using VRF to discover the random selection of aggregators, the data centralization problem is solved, but the random selection of aggregators cannot guarantee the accuracy of the data. In order to solve the valuable data problem, Ares innovatively adopts the challenger model. When the verification node in the network finds that there is a problem with the aggregator's data during the data verification process, it only needs to pay a certain amount of Gas to initiate a challenge.

The data will be passed to a quorum of honest aggregators and token holders. Under normal circumstances, it does nothing except that there is a challenge in the network. Each member of the arbitration organization will initiate a BFT vote on the challenge. If verified, the aggregator is penalized and the challenger is rewarded.

BTC fell below $32,000: BTC fell below $32,000 and is now reported at $31,983.5. The intraday drop reached 7.33%. The market fluctuates greatly. Please do a good job in risk control. [2022/5/10 3:01:46]

As an open source decentralized cross-chain Oracle service protocol, Ares builds a decentralized data transaction ecosystem by introducing a token model and community governance. Data demanders can safely and effectively obtain off-chain data, and allow high-quality data providers to profit through on-chain governance and data transactions.

Ares is built under the Polkadot ecology, built through Substrate, and shares Polkadot's security consensus as a parachain of the Polkadot ecology. Secondly, Ares is a scalable two-tier oracle network, which is another parachain of Polkadot, and provides decentralized data oracle services through the mainstream blockchain network.

Chorus One Launches $30 Million Proof-of-Stake Investment Fund: Jinse Finance reports that acquisition solution Chorus One, which provides a proof-of-stake (PoS) staking system for more than 28 decentralized networks, has launched a new fund that will Invest $25-30 million from its balance sheet over three years in the PoS network, protocol, and related products. The ethereum blockchain plans to soon move from a proof-of-work consensus mechanism to a proof-of-stake mechanism, thereby focusing more on the process by which asset owners stake their tokens for the right to validate new blocks of transactions and add them to the blockchain. Leading PoS blockchains include Avalanche, Cardano, Polkadot, and Solana. Founded in 2018 by Brian Crain and MeherRoy, ChorusOne was one of the participants in an early incentivized testnet for the Cosmos interoperable blockchain network. (coindesk) [2022/4/5 14:04:13]

Aggregator

U.S. Senator Cynthia Lummis: Bitcoin is a Commodity: According to news on April 2, U.S. Senator Cynthia Lummis (R-WY), a Bitcoin supporter, said in an interview that from the perspective of policy making, owning Bitcoin Bitcoin is no different than owning a cow, she said: "Well, I also raise cows, cows are a commodity, bitcoin is a commodity". On the other hand, Lummis believes that cryptocurrency will gradually evolve into a viable currency: “I believe that one day it will become currency, at some point, it will become a payment method, not yet, but it will be very Happening soon". (decrypt) [2022/4/2 13:59:53]

The aggregator goes through the external request data obtained by the scanner and sends the request to the processor to handle all Oracle requests. An aggregator is randomly selected by the VRF algorithm. It invokes processors to aggregate data from multiple data sources and submit it to blocks, which are then broadcast to the Ares network via the block propagation protocol.

Challenger

BTC fell below $60,100: BTC fell below $60,100 and is now reported at $60,092.15. The intraday drop reached 3.88%. The market fluctuates greatly. Please do a good job in risk control. [2021/10/27 6:14:37]

Challengers verify the integrity and validity of data submitted by aggregators, and submit fraudulent aggregator transactions and correct data to the reputation committee for rewards.

Reputation Committee

The security of the regional network is ensured by incentivizing challengers and punishing malicious aggregators. The reputation committee is completely self-governed by the community, and the reputation committee is elected through token mortgage and reputation weight. The internal arbitration of the reputation committee needs to be voted through the FSP fraud security protocol, and only when there is a dispute on the chain.

Data User

Data consumers can be objects that obtain external data in smart contracts, parachains, and DAPPs. They can provide a variety of reliable and effective data for DEFI, market forecasts and betting. Since the data on the Ares chain has a certain data query period, data consumers should obtain the data on the chain according to certain security regulations.

Data: The United States and Kazakhstan account for the top two Bitcoin mining volumes in the world: On October 18, Reuters quoted data released by the Cambridge Alternative Finance Center in the United Kingdom as saying that the United States accounted for the largest share of mining in the world, as of the end of August Accounting for about 35.45 of the global hash rate, followed by Kazakhstan and Russia, miners elsewhere have also begun to fill the gap, turning their attention to North America and Central Asia. (Akipress) [2021/10/18 20:37:37]

Node Operator

As a full node of the Ares network, node operators verify data by comparing it with locally stored data to ensure the security of the Ares network and provide Oracle RPC services.

Ares proposed two solutions to avoid problematic nodes as much as possible, namely distributed data sources and distributed oracles.

Each node operator obtains data from multiple different data sources to reduce the impact of abnormal data sources on the results. Aggregate functions can aggregate multiple returned results into one answer. There are many solutions to accomplish data aggregation, for example, mean after removing outlier data.

Data sources may fetch data from each other, which may also cause errors in aggregation results. We will continue to focus on such issues and report on the independence of data sources.

Distributed Aggregator

Aggregators (i.e. miners) are mainly responsible for providing various types of data, and challengers (i.e. verifiers) verify and challenge various data provided by data providers and send them to the parliament (arbitration institution). The reputation committee arbitrates challenges from data verifiers, and if the verification is successful, it rewards the challenger and punishes the aggregator. Among all the aggregation miner nodes that provide data quotes, Ares Network uses a verifiable random function (VRF) to randomly select a group of aggregation nodes to compete to provide the most accurate market data. By introducing VRF into the system, the degree of decentralization of the system can be significantly improved. Aggregator nodes are randomly selected by VRF to provide external data on-chain.

After calculating the VRF, Ares can select an aggregator, finally determine that an aggregator generates blocks at the current height, and verify the aggregator through zero-knowledge proof. This part will be broadcast at the same time as the block is produced, and normal validating nodes will verify the block after receiving it. If it is within the allowed deviation, the validation will pass.

Penalty mechanism

A very strict POS penalty guarantees the security of the Ares network. If a node operator is identified as an attacker, all Ares tokens pledged by him will be distributed to the reputation committee, challengers and treasury.

In order to prevent malicious quotations, corresponding to different data markets such as DEFI, Ares has designed a challenge mechanism, in which the challenger (any Ares full node) can object to the quotation. Initiating a challenge requires paying a small amount of ARES tokens and broadcasting it to the reputation committee. Assume that 2/3 nodes of the reputation committee are audited as malicious. In this case, he will be marked as a malicious node, the stake tokens are frozen, and the node stake tokens have been transferred to the reputation committee, challenger and treasury.

But in extreme cases, when data users suffer losses due to malicious nodes reporting data, they can propose to the treasury to apply for compensation, and then vote through the community, and compensate the data users after passing through the treasury.

 

Any third party can access the Ares network as a node by staking a small amount of ARES tokens, providing oracle services and enjoying mining rewards. The total amount of initial tokens in the mining pool accounts for 20%. Every year, 10% of the remaining pool is mined and distributed to nodes. Mining rewards decrease year by year, but mining is never completed.

Handling fee

For each oracle request, a processing fee (gas) needs to be paid to the node. 80% of this goes to aggregators, while 20% goes to the treasury.

The ARES token will be the first supported fee token, and token holders will also have the right to vote on which other tokens can also be used as fee tokens supported by the Ares network, such as stablecoins.

In the treasury bureau of the Ares network, treasury funds come from transaction fees, penalties from malicious nodes, and a portion of inflation caused by staking. Treasury funds are used to reward challengers, make up for the loss of data demanders, and ecological construction.

Treasury funds can be used by launching proposals. Any holder of the Ares Network can participate in the referendum, and the Ares Network can develop healthily through a democratic governance model.

Anyone holding ARES tokens has the right to govern and can vote for protocol upgrades and reputation committee elections. The reputation committee ensures the security of the regional network by incentivizing challengers and punishing malicious nodes.

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