How Does a Decentralized Oracle Network (DON) Improve Data Security?
A DON sources data from multiple independent nodes and data providers, aggregating the inputs to arrive at a consensus or median price. This redundancy and aggregation make it prohibitively expensive and difficult for a single malicious actor to manipulate the data feed.
The network uses cryptographic proofs and a reputation system to penalize dishonest nodes, ensuring data integrity and security.
Glossar
Data Integrity
Provenance ⎊ Data integrity within cryptocurrency, options trading, and financial derivatives fundamentally relies on establishing an immutable provenance for each transaction and data point.
DON
Derivation ⎊ Within cryptocurrency derivatives, DON, often referencing "Digital Option Network," signifies a nascent framework for decentralized options exchanges leveraging blockchain technology.
Decentralized Oracle Network
Network ⎊ A Decentralized Oracle Network (DON) facilitates secure and verifiable data feeds from external sources to blockchain environments, crucial for smart contract functionality within cryptocurrency derivatives and options trading.