Getting Started
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What is Odin Protocol?
ODIN is a decentralized protocol for the web3 data economy and a decentralized system designed to build a data oracle network (DON) based on an open protocol for interaction between participants and a sustainable economy. The use cases of ODIN are mainly focused on user generated data apps, Non-fungible tokens, Decentralized Finance applications and others.
ODIN is a new system that combines the advantages of cryptography and decentralized technologies, as well as the simplicity of connecting data providers and the flexibility of developing contracts to receive and process data from them (to work with business requirements, which are to increase the scalability and reliability of circulating data).
Why Odin Protocol?
Since the emergence of the concept of digital assets and the emergence of Bitcoin as the first representative of this type, accounting systems have come a long way, the purpose of which is to expand functionality and adapt to current business requirements. However, something has remained and will remain unchanged until now - this is determinism. Today there are a large number of protocols that allow users of different systems to exchange value among themselves. The architecture of such protocols ranges from using a centralized mediator to resolve disputes to completely trustless atomic swaps, which allow exchanges to be made, trusting only that the math works. However, when it comes to the exchange of "live" data between systems, the situation is not so progressive. Most often, these situations are solved by attracting one / several oracles, which are bridges connecting the accounting system and the outside world. Such oracles are centralized, which directly affects the final system. For example, the huge computing power of Ethereum that checks the rules of the protocol cannot solve the problem if a centralized oracle provided invalid data, as a result of which the contract was not executed correctly (despite the mathematical correctness). Besides the challenges with the oracles systems itself, the exponential growth of data-for-reward models in decentralized applications require a reliable automated system for exchanging users’ data for the reward tokens in a secure and compliant manner.
Odin's Focus - Decentralization
The main point that ODIN aims to provide is to ensure decentralization. By decentralization, we mean several important aspects.
Permissionless
The first is that anyone can become a data provider within the system boundaries. To do this, you do not need to have any permissions - just initiate a transaction for creating a new data source, in which you determine how this source can be accessed. This feature allows you to switch from a model (for example), where only one exchange can provide the ratio of a pair of assets, to a model that allows you to have thousands of such data sources and allows the end-user to independently determine which sources will be used and in what quantity. That is, the first step is to remove the threshold that determines who can be the data source.
Validation
The second feature is that there is no single party that transfers data from all sources to the system. The information transfer process is also decentralized - many validators access data sources with the same requests and generate reports on the information received. Further, these reports are aggregated, and they are already the input for performing operations on the data. In this way, we remove a single vulnerable side that can transfer data to the system.
Open
And the last feature is that anyone can suggest an algorithm (script) for how the received data will be processed. Thus, the end-user will have several possible scenarios for receiving and processing data, which can be performed either jointly, or the end-user independently chooses a scenario suitable for his case (price, the reputation of data sources, their number, etc., can play a role here).
The goal of ODIN is not only to create an ecosystem of oracles and open data marketplace but also to create an economic model suitable for these purposes - transparent, secure, and understandable.