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Merge pull request #9725 from HiroyukiNaito/dev
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Contents: Corrected an end part of a lacking parenthesis in a Oracle page
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corwintines authored Mar 15, 2023
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Expand Up @@ -284,7 +284,7 @@ Staking/voting also protects decentralized oracles from “Sybil attacks” wher

[Schelling point](<https://en.wikipedia.org/wiki/Focal_point_(game_theory)>) is a game-theory concept that assumes multiple entities will always default to a common solution to a problem in absence of any communication. Schelling-point mechanisms are often used in decentralized oracle networks to enable nodes reach consensus on answers to data requests.

An early example is [SchellingCoin](https://blog.ethereum.org/2014/03/28/schellingcoin-a-minimal-trust-universal-data-feed/), a proposed data feed where participants submit responses to "scalar" questions (questions whose answers are described by magnitude, e.g., "what is the price of ETH?", along with a deposit. Users who provide values between the 25th and 75th [percentile](https://en.wikipedia.org/wiki/Percentile) are rewarded, while those whose values deviate largely from the median value are penalized.
An early example is [SchellingCoin](https://blog.ethereum.org/2014/03/28/schellingcoin-a-minimal-trust-universal-data-feed/), a proposed data feed where participants submit responses to "scalar" questions (questions whose answers are described by magnitude, e.g., "what is the price of ETH?"), along with a deposit. Users who provide values between the 25th and 75th [percentile](https://en.wikipedia.org/wiki/Percentile) are rewarded, while those whose values deviate largely from the median value are penalized.

While SchellingCoin doesn’t exist today, a number of decentralized oracles—notably [Maker Protocol’s Oracles](https://docs.makerdao.com/smart-contract-modules/oracle-module)—use the schelling-point mechanism to improve accuracy of oracle data. Each Maker Oracle consists of an off-chain P2P network of nodes ("relayers" and "feeds") who submit market prices for collateral assets and an on-chain “Medianizer” contract that calculates the median of all provided values. Once the specified delay period is over, this median value becomes the new reference price for the associated asset.

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