How does Flux Protocol work?!

Getting started: Testnet — Data Validator & Data Requestors

Hello everyone friends! 👋

Flux is a cross-chain oracle aggregator that provides smart contracts with access to economically secure data feeds on anything.

Every component of the protocol is designed to be maximally open-source, permissionless, and trustless, enabling individuals and communities to design and develop bespoke solutions for data provision and retrieval.

Flux Protocol provides access to the information that people need to explore and interact with the world around them, also, Flux Protocol wants to eliminate dependence on large corporations.

At the moment Flux Protocol is not fully operational, it is working on a test network of Near Protocol. So far, two projects have confirmed the use of Flux Protocol: Pulse Market and Stake.gg.

Data Requesters

Smart contracts are able to connect to the Flux Protocol and make search queries, to perform a data request, the address of the smart contract must be whitelisted in the Flux DAO. There are some simple requirements:

Open-source

The source code must be made publicly available with a license that allows modification and redistribution.

Timelock for upgradable contracts

smart contracts with upgradable code must possess a verifiable timelock mechanism for contract updates to ensure a grace period between upgrades. The timelock must also be sufficient enough to enable the Flux DAO to propose and vote on removing the contract should the contract upgrade be detrimental to the health of the network.

Auditable TVs

The oracle must be able to audit the TVs of the contract in real-time to calculate data request fees that fluctuate due to market dynamics.

Users can deposit their Flux tokens as collateral to fulfill a request. This is piped in to prevent unscrupulous participants from making invalid requests. This adds a layer of security since the requester could lose their deposit to the treasury if the validators deem it invalid. Requests can be addressed to human oracles or API endpoints.

More information about Data Requesters you can be read in the official documentation Flux Protocol.

Data Validators

Any community member can create a node and contribute to the protocol by answering queries automatically or manually through Oracle Explorer.

It takes a certain number of tokens to become a Data Validator, NEAR Protocol needs several million coins to support a node, how many Flux will need is unknown. Becoming an active validator gives you the opportunity to earn passive income. The task of the validator is to actively maintain the network so that there is no failure, which queries your validator puts and provides results in your terminal, and you can check its work in Oracle Explorer.

More information about Data Validators you can be read in the official documentation Flux Protocol.

Conclusion

More technical information can be found in the official Flux Protocol documentation. It contains a lot of nuances, I encourage everyone to go deeper and learn something new for themselves because this knowledge will definitely be useful for you!

Every week I publish a new article on Flux Protocol, stay tuned so you don’t miss anything important.

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Andrey Bezruk

Andrey Bezruk

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