Data powers the crypto industry—but the limitations of today’s oracles threaten its security, decentralization, and usability, according to Hugo Philion, Co-Founder of “blockchain for data” Flare.

“There are really only very few things you can do without data,” Philion explained during his recent sitdown interview with Decrypt. “Data powers pretty much most of the value of the current use cases, and we think most of all of the future value,” in the crypto and blockchain industry.

However, he explained, the industry’s reliance on off-chain oracles poses risks. “The problem with having an external entity providing the data is that you can’t be certain how that works,” he said, adding that, “today’s oracles have not really been looking strongly at security and decentralization and usability.”

The worst-served data item on two leading oracles has “only five entities that are serving the price now,” he pointed out. As well as working out how to integrate external data services, blockchain developers have to figure out if they firstly have the data I need, and secondly, whether the data I need has enough people serving it for me to feel “at least moderately comfortable with the risk.”

Using restaking to secure oracles introduces the risk of slashing from the base layer

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Author: Decrypt Staff