Kylin Oracle as an advanced decentralized data feeding protocol provides a reliable, efficient, and trustless solution for off-chain data. The protocol runs in a purely decentralized and scalable manner. Kylin Oracle, which is built on Substrate, will be connected to the Polkadot ecosystem as a parachain, sharing the underlying consensus of Polkadot. The security and network performance will be guaranteed by Polkadot and Substrate Framework. Data integrity and validity can be improved due to the arbitration mechanism.
As discussed at the outset, current oracle projects’ integrations with data consumers have more marketing value than real-word value at the moment due to the high cost of usage fees, and although many useful connections have been made with projects like Chainlink that highlight the need for a decentralized oracle, there is nevertheless reliance on centralized feeds at the end of the day by many of these data consumer-side projects. Kylin, occupying an oracle-like functionality through extending and coordinating, and removing friction for OCW functionality, will offer a much cheaper alternative to the current solutions extant in the field today. Thanks to building natively via Substrate on Polkadot, we expect the cost of doing so and the speed and ease of doing so to be many orders of magnitude more efficient such that practical usage in the near-term will be a reality.
In the schematic diagram above, Kylin Oracle encompasses five entities, including Data Consumer, Data Warehouse, Oracle Node, Arbitration Node, and Blockchain Node. These five entities represent the major components of Kylin’s architecture. The details and the interrelated relationships of the components are as the following:
Data Consumer (Requester): Data consumers may represent smart contracts, APIs, blockchains, protocols, applications or any data repository that calls up the Kylin and pays the fee by the native token $KYL.
Data Warehouse (DW): Data Warehouse is a decentralised on-chain repository of integrated data. Data Warehouse stores the query queue and historically validated data/value that contracts or any other Data Consumers can read from.
Oracle Node (Miner): Oracle Node handles all the data requests such as social data and market data from separate off-chain data sources, and signing the transactions of the Kylin parachain. Off-chain workers play a role as one kind of Oracle Node implementations.
Arbitration Node (Arbitrator): The Arbitration Node guarantees the security and accuracy of external data by verifying the data integrity and the validity that Oracle Node provided. The Arbitration Node has the right to challenge the validity of a mined value or data by Oracle Node in the challenge time by paying a challenge fee.
Blockchain Node (Validator): The bottom layer of Kylin Oracle is mainly built on a specialized blockchain network established by Substrate. It allows the Oracle Node to broadcast the mined value and the proof of calculation, then support the Arbitration Node to verify the validity of the mined value.