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# Three Oracle Types: MakerDAO、Chainlink、Tic Ton

## Oracle Reliability Issues
As the demand for off-chain data by blockchain networks grows, Tic Ton fulfills this requirement with its unique and decentralized approach. Consequently, Tic Ton finds its application across a diverse range of DeFi projects and stands as a strong contender to lead the oracle market.

Oracles are pivotal in blockchain as they bridge the gap between the on-chain and off-chain worlds. They enable smart contracts to respond to external data and serve as a conduit for real-world data to interact with the blockchain, essentially acting as the interface between the two realms.

**Presently, there are three main types of oracle solutions.**

## Type One: MakerDAO's Federation Oracle Model
Firstly, **Federation** oracles like MakerDAO use a set of selected miners to fetch and upload data, maintaining anonymity for security but at the cost of centralization risk. Early DeFi projects often opted for such centralized oracle solutions to minimize development time and costs despite the inherent security trade-offs.

## Type Two: Chainlink's Proxy Oracle Approach
Secondly, Chainlink exemplifies the **Proxy** oracle model. It operates through a system of incentives and data amalgamation to source and verify information. While it offers a more decentralized approach compared to MakerDAO's model, the indirect nature of data validation—relying on the reputation of data providers—poses its own set of challenges.

## Type Three: Tic Ton's Actual Price Oracle Model
Thirdly, the **Actual Price** oracle model, as exemplified by Tic Ton, introduces a novel mechanism that allows for the generation of on-chain facts by synchronizing real-world market prices through a system of quotes provided by miners. This model, enhanced by the Tic Ton quote mining mechanism, encourages a participatory and distributed system, ensuring that the data is not only accurate and timely but also resistant to manipulative attacks. This ensures any participant can become a quote miner, contributing to, and benefiting from, the system.

## Conclusion

Here's a concise overview of oracle machines' state and trends:

- Centralized oracles inherently risk centralization, an issue that's unavoidable.
- True oracle systems should generate price facts directly on-chain, rather than just uploading pre-formed off-chain data.
- Tic Ton's distributed price fact oracle is innovative, creating price facts on-chain, setting it apart from systems that simply upload data.
- The effectiveness of an oracle should be measured by its ability to support large-scale transactions and its resistance to attacks. Tic Ton's model, which verifies data with real stakes from miners, offers a robust and attack-resistant structure.

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