What is Pyth Network?
Pyth Network (PYTH) is an innovative decentralised oracle solution that functions as a marketplace for financial data. Unlike traditional oracles, which gather data from public resources through nodes, Pyth incentivises original data owners to share this essential “first-party” data directly on-chain. This unique approach enhances data integrity and reliability.
How Pyth Network Operates
The platform aggregates market data from over 90 first-party sources, which include global exchanges, trading firms, and market makers. Once collected, this data is distributed across more than 40 blockchains, ensuring that it reaches a wide audience and is readily available for various applications within the decentralised finance (DeFi) ecosystem.
Types of Data Offered
Pyth specializes in two primary types of price data: tradeable asset prices sourced from exchanges and the most recent transaction prices provided by traders. These price feeds are updated consistently every 400 milliseconds, which helps to prevent price manipulation and ensures that users receive timely and accurate information.
The Importance of PYTH Token
PYTH serves as the native utility token of the platform. It has multiple functions, including staking, protocol governance, payment of fees, and incentivisation of node operators and delegators. This multifaceted use of the token contributes significantly to the overall functionality and sustainability of the Pyth Network.
Pyth Network’s Role in the Evolving DeFi Landscape
As the DeFi and blockchain industries continue to evolve, Pyth Network’s model of first-party data collection positions it well to adapt to future changes. In comparison to legacy oracles, which often struggle with issues of speed, pricing, and distribution, Pyth aims to scale effectively while maintaining high performance in these areas.
Key Features of Pyth Network
- Decentralised oracle solution designed for financial data.
- Direct sharing of first-party data from original owners.
- Aggregates data from over 90 sources, affecting more than 40 blockchains.
- Quick updates every 400 milliseconds to ensure accuracy.
- Utility token functions for staking, governance, and fees.
Relevant Websites
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