Flux protocol: overview

Flux is a cross-chain oracle aggregator that provides smart contracts with access to cost-effective data streams on multiple platforms. Each component of the protocol is designed to be as open as possible, allowing users and communities to design and develop long-term customized solutions for data provision and retrieval.

Flux is an open market protocol that allows developers to create markets for anything. Any asset, product, real event, and anything else you can imagine.

Flux creates a secure trading system that ensures the efficient functioning of the markets by compensating validators for resolving events (with a commission of open interest). Using Flux, stakeholders work together to create a truly decentralized, usable, and scalable ecosystem.

The Flux protocol is now running on the NEAR blockchain to avoid issues the team faced in the early stages of the project while tried to build on Etherium. The two major issues they faced were security considerations and transactions costs.

Flux is developed and funded by the Open Oracle Association, a Swiss non-profit organization with the sole purpose of supporting the ecosystem through the distribution of grants both in fiat and through USDC tokens and Flux Token.

Flux protocol is the backbone of a decentralized infrastructure for working with off-chain data and its permissions on the blockchain. This oracle is uniquely designed to provide flexibility without compromising security and is still robust enough to scale as economically safe as possible.

Requests for data sent over the network are checked by validators and receive permissions from them, which, in turn, must simultaneously ensure the security of the network and ensure its operation so that attackers do not distort data requests. This mechanism is proportionally correlated with the total cost provided by the protocol (TVS), encourages validators to honestly resolve requests for data, and prevents attackers from incorrectly resolving results by depriving them of any incentive to do so. When permission is required to request data, validators put the network token on the line to charge an appropriate fee for the request for data. If the protocol protects more data, validators will be rewarded with higher rates for requesting data. If less data is protected, the fees will be lowered to deter attackers as they gain less value by encouraging data query providers to use Oracle at a fraction of the cost.

The Flux system includes 3 components:

1. Flux Oracle — a secure, decentralized protocol for querying and processing arbitrary off-chain data for on-chain solutions. It has unique properties to increase network flexibility and security and provides economic guarantees that scale with the value provided by the oracle. The FLX token protects the protocol and is required to create and process data requests.

Using a community-compiled list of customizable query interfaces, each providing custom features, services, and payment models, Oracle Flux enables protocols to connect to existing infrastructure to handle data queries securely and flexibly. Query interfaces can create and process requests for data on behalf of protocols or users who need off-chain data, while validators collaborate to process the results. Oracle can also support existing Oracle pipelines and APIs, further enhancing external network security and data integrity.

2. Request contracts are added to the protocol through requests for joining the Requester Registry (RR) — a whitelist of contracts that are allowed to create data requests managed by the Flux DAO (that is, the Token Curated Registry). The proposal to join the RR must include the number of FLX tokens in use, and token holders are responsible for approving or rejecting the proposal to include the Request Contract after all requirements have been met and the contract code has been verified.

3. Flux DAO. FLX token holders can participate in protocol governance through the Flux DAO. Suggestions may be made for adding or removing query interfaces, upgrading parts of the system, changing network parameters, and providing funding.
Only after reaching a quorum on any whitelist proposal and a 24-hour grace period can the proposed registry changes be implemented. This period is intended to allow validators who disagree with the proposal to exit. The community can also change the quorum threshold and DAO approval requirements as they see fit.

Most recently, the Flux team announced the completion of the Seed round and raised over $ 10 million from such well-known blockchain funds as Coinbase Ventures, CoinFund, Uncorrelated Ventures, Figment Capital. Based on all of the above Flux Protocol is a great layer 2 solution that checks its data streams with other oracles, thereby significantly reducing the likelihood of providing low-quality information to the end-user regardless of the blockchain.

You can follow the progress in Flux в Telegram & Twitter & Discord

Join #foreteller and follow Flux.

Feel free to check out the Flux protocol documentation for more details:

Researcher by design