Most Oracles today are centralized systems, which suffer from the problem associated with having a single point of failure. Razor Network is a decentralized Defi oracle network with no centralized bottlenecks. The goal is to create a decentralized oracle that offers maximum game-theoretical security without compromising speed.
The oracle is arguably the most important piece of any Defi application. More importantly, the oracle needs to be fully permissionless to be secure. Oracle is anything that provides external data to a blockchain. There are many attacks on the oracle and if it is not very secure the validators will lose from the attack. Razor network was designed to tackle these attacks by dispute escalation and resolution mechanism. This method solves a trade-off between the speed and security of a fully decentralized system.
Razor Network is truly decentralized and decentralization is an important goal of the network. This is because centralization puts a high amount of power in a small group of entities, which makes a lot of attacks feasible and, jeopardizes the trustworthiness of the protocol. The network encourages decentralization through; a fair and wide distribution of tokens, a permissionless protocol that does not give anyone the power to decide who is allowed to participate or not in the network. Also by relying on the decentralized, censorship-resistant underlying blockchain, assigning queries pseudorandomly to the validators, making collusion and bribing difficult.
Razor's end-to-end decentralized Oracle network avoids any weakness associated with centralized networks and is secured by a highly efficient Proof of Stake network which punishes misbehaving nodes through a strict Slashing mechanism. This protects the clients from malicious stakeholders who may try to report incorrect or inaccurate data points in order to influence the result. Razor Network also provides security through the disputed resolution mechanism. The dispute resolution system in
Razor protects honest stakeholders from selective misinformation and collusion attacks.
With the configuration of the Razor Network, it has proven to have an upper hand over all other Defi oracles. It is truly decentralized and permits anyone to run a node in the network provided they have enough RAZORS, the utility token. The network is recently the most secured oracle as it has recorded no attack since its launch. The network grackles the attacks on previous oracles and the many attacks oracles face, therefore making it very secure.
