Snassy.icp has published a detailed explanation of why professional oracle infrastructure could play an important role in Multidex, outlining the differences between a basic exchange price aggregation system and a specialised decentralised oracle network.
The post expands on an earlier view that Chainlink price oracles would be beneficial for Multidex, focusing on why simply collecting prices directly from exchanges may not provide the same level of reliability as a professionally operated oracle network.
According to Snassy.icp, the key issue is not whether exchanges can provide accurate prices, but how those prices are validated, weighted and maintained during changing market conditions.
The explanation uses a hypothetical example in which a Multidex oracle has access to the same exchange data sources as a Chainlink node. In that scenario, the distinction lies in the process of evaluating those sources, determining their reliability and adjusting how much weight each source receives.
Snassy.icp said a simple aggregation model that treats all sources equally could give the same influence to a smaller exchange as to a major market venue. Improving that approach would require ongoing monitoring and judgement about data quality, reliability and market conditions.
The post argues that this type of work is typically carried out by dedicated oracle operators who continuously assess data sources and respond to unusual market activity.
According to the explanation, Chainlink’s decentralised oracle networks rely on multiple independent node operators who are incentivised to produce accurate price reports and can face penalties for publishing outlier data.
The post also states that professional oracle networks have incentives to secure reliable data arrangements with providers and to supplement exchange prices with additional market analysis.
Snassy.icp said building an equivalent system on the Internet Computer would require a network of dedicated oracle operators, aggregation infrastructure and incentive mechanisms comparable to those used by established oracle providers.
The explanation concludes that if similar infrastructure were eventually developed within the Internet Computer ecosystem, external oracle providers would become less necessary. Until then, Snassy.icp said professional oracle networks provide capabilities that extend beyond simply retrieving exchange prices.
The post contributes to ongoing technical work around oracle design, price feeds and infrastructure reliability for decentralised finance applications on the Internet Computer.
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