FAQ

1. How does APRO work?

Apro has established a two-tier oracle network. The first tier is called OCMP (off chain message protocol) network, which is the oracle network itself, consisting of the network's nodes. The second tier is Eigenlayer network as the backstop tier. Once the arguments happen between customers and OCMP aggregator, the Eigenlayer AVS Operators with strong historical reliability scores or more security network than the first tier will do the fraud validation.

The first tier is the participant of the ecosystem, while the second tier is the adjudicator of the ecosystem. Adjudicators do not have the power to judge simply because of their higher status, but because of their past historical data performance or the security of ETH, they are more credible.

The nodes in the initial tier monitor each other and can report to the backstop tier in case of large-scale anomalies, where the nodes of the backstop tier make judgments. The two-tier network adds an arbitration committee that comes into effect at critical moments, reducing the risk of majority bribery attacks on nodes by partially sacrificing decentralization.

Staking is similar to a margin system. Nodes need to deposit two parts of the margin (deposits): the first part of the margin will be forfeited (slashed) for reporting data different from the majority, and the second part of the margin will be forfeited for faulty escalation to the second-tier network.

In addition to nodes, users can also challenge the behavior of nodes by staking deposits. Through the user challenge mechanism, APRO incorporates users and the community into the ecosystem's security system, allowing not only mutual supervision and reporting among nodes but also supervision from outside the nodes.

The OCMP process:

2. What is a blockchain oracle?

A blockchain oracle is a bridge that connects a blockchain with external systems, allowing smart contracts to access and interact with data from the outside world. Oracles are essential for enabling blockchains to interact with real-world events, information, and conditions that are not natively accessible on the blockchain.

Oracles can provide various types of data to smart contracts, such as price feeds for cryptocurrencies or traditional assets, weather data, election results, and more. They can also enable blockchains to trigger actions in external systems, such as sending a payment or updating a database.

However, oracles introduce a level of trust into the otherwise trustless environment of a blockchain. Since smart contracts rely on the data provided by oracles, the security, reliability, and accuracy of the oracle become critical. Different approaches exist to address these challenges, such as decentralized oracles, which distribute the data sourcing and validation process across multiple nodes to reduce the risk of manipulation or errors.

3. Why do blockchains need oracles?

The world of blockchain and the real world are two completely separate worlds. Blockchain systems can be viewed as deterministic systems, where all nodes follow the same rules and protocols to execute transactions and reach consensus. In this process, each node performs deterministic operations, meaning that for the same input data, all nodes will get the same output results. This deterministic operation ensures the effectiveness and security of the decentralized consensus process.

However, when it comes to receiving external data, the situation becomes uncertain. Since external data may vary due to differences in sources, timing, and other factors, individual nodes may face uncertain operations when obtaining and processing external data. This uncertain operation may lead to data inconsistency between nodes, thereby affecting the consensus process, so the blockchain itself cannot actively obtain data from external sources.

Although blockchain has revolutionary potential in many aspects, especially programmable blockchains like Ethereum, if it remains a closed system without links to the outside world, it cannot realize its full value, just like a computer that is not connected to the Internet. Only by truly revitalizing blockchain technology and connecting it with the external world, allowing on-chain smart contracts to access and respond to real-world data, can smart contracts be truly applied in reality, and Web3 can truly reach the masses.

The oracle is responsible for connecting the blockchain and the real world, thereby achieving data interoperability between the blockchain and the real world. Oracles are responsible for securely, accurately, and credibly introducing external data into the blockchain system. Through oracles, blockchain systems can obtain and utilize external data while maintaining deterministic operations, thereby enabling a broader range of applications and functions.

4. What is a decentralized oracle network?

A decentralized oracle network (DON) is a system that aims to provide reliable and secure external data to smart contracts on a blockchain in a decentralized manner. Unlike a centralized oracle, which relies on a single source or entity for data, a decentralized oracle network aggregates data from multiple sources and uses consensus mechanisms to ensure the accuracy and integrity of the data provided to the blockchain.

Key features of a decentralized oracle network include:

1. **Decentralization:** The network consists of multiple independent oracle nodes, reducing the risk of a single point of failure or manipulation.

2. **Consensus Mechanism:** Oracle nodes collectively agree on the data to be provided to the blockchain, ensuring that the data is accurate and reliable.

3. **Incentive Structure:** Oracle nodes are often rewarded for providing accurate data and penalized for providing false or inaccurate data, encouraging honesty and reliability.

4. **Data Aggregation:** Data from various sources is aggregated to form a more accurate and comprehensive dataset.

5. **Security:** Mechanisms are in place to protect against malicious actors and ensure the integrity of the data.

Decentralized oracle networks play a crucial role in enabling smart contracts to interact with real-world data and events in a trustless and secure manner, thereby expanding the potential applications of blockchain technology.

5. What makes the APRO oracle network more reliable than other oracle networks?

Service stability: with Eigenlayer

RPC stability: High available RPC node

Dao voted market

Price security: TVWAP

Network Security: OCMP