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Blockchain networks can be incredibly versatile tools, but they're only as reliable as the data they contain. Adding accurate and reliable data to blockchain technology can be surprisingly challenging. Pyth Network hopes to solve this issue by using oracles to add real-time market data to blockchains. To see how this interesting technique works and why it's so revolutionary, read this helpful guide.
Key Takeaways:
Pyth Network is a system of blockchain oracles that takes real-world crypto price data and adds it to blockchain networks.
The system held a token airdrop on Nov 20, 2023, in which it distributed 600 million tokens to its users.
Looking to trade Pyth Network tokens? Bybit now offers the PYTH/USDT Spot trading pair. In celebration of this listing, Bybit is holding an event where you can earn a share of the 80,000 USDT prize pool!
Pyth Network is a system of blockchain oracles that takes real-world crypto price data and adds it to blockchain networks. This makes it possible for users to easily track crypto markets and set up smart contracts that respond to crypto price shifts.
An oracle is a blockchain tool that collects data from other locations and turns it into information that a blockchain can understand. Blockchain oracles are third-party systems that connect to blockchains, essentially functioning as bridges for data.
Pyth Network was founded in 2021 by a talented group of developers, including specialists who used to work at Jump Crypto and other decentralized finance (DeFi) institutions. The project started when its development team noticed a need for more accurate pricing data on blockchain networks. As they worked on blockchain technology, they realized that most users didn't have access to real-time pricing data for their smart contracts. They hoped to create a system that could democratize crypto and offer professional-level data feeds to casual crypto enthusiasts.
Pyth Network aims to give the general public access to on-chain, accurate financial data by collecting crypto pricing data directly from financial institutions and then bringing it to multiple blockchain networks. With its services, Pyth Network hopes to provide free, accurate data to anyone who needs it.
Pyth Network is trying to take the data-publishing method that’s used by major financial institutions for things like stocks, and apply it to blockchain. Though there are some pricing data oracles right now, many of them fail at data reliability. They often collect secondhand pricing information from market participants, and update infrequently. Pyth Network hopes to be a more accurate alternative that’s capable of seamlessly aggregating data across multiple blockchains and markets.
The secret to Pyth's data reliability is its willingness to pay publishers for market data. The Pyth system doesn’t rely on scrubbing data from publicly available financial applications and decentralized exchanges. Instead, they go straight to major financial institutions to purchase reliable data. Financial institutions that provide price data earn fees that are funded by Pyth users.
The other essential mechanic of Pyth is its method for connecting pricing data to the DeFi space. The multi-chain oracle works through an appchain named Pythnet. Each data publisher working with Pyth Networks runs a validator node on the Pythnet proof of authority (PoA) chain. All the different prices from various publishers are aggregated to create a single fair price for the crypto. Cross-chain architecture then works with decentralized messaging protocols to send price data to any chain that requests the data.
The Pyth Network offers numerous features of interest to those in the financial industry and/or crypto world.
Price feeds are the main service that Pyth Network provides with accurate and reliable data on cryptocurrencies, foreign exchanges, metals and a variety of other assets. Each price feed tells users the current price of the asset, and provides price data history. Pyth data feeds can be used to check things such as which cryptos are trending and which have recently lost value. Over 370 price feeds are available to use with smart contract execution.
When people want to use Pyth Network for their blockchain operations, they can implement the pull update system, an oracle mechanic that lets customers request updates on-demand instead of having updates constantly pushed into their blockchains. With the Pyth pull update model, financial applications send a message to the Pythnet chain asking for the price of a certain asset, and Pyth Network sends the latest information to their blockchain. This greatly reduces storage and transaction demands.
To help launch the Pyth decentralized autonomous organization (DAO), Pyth Network has announced plans to create a PYTH token airdrop that will give away 600 million tokens, which is almost 6% of the total PYTH supply.
This airdrop is scheduled to begin on Nov 20, 2023. It features retroactive eligibility and will continue through Feb 18, 2024. The initial airdrop token distribution will provide 100 million tokens to decentralized applications (DApps), 255 million to DeFi users and 10 million to active users of the Pyth Network community.
To be eligible for the airdrop, you need to have an account linked to DApps that use Pyth data, or you need to interact with Pyth social media channels. Users interested in claiming tokens in this airdrop can check their eligibility through the Pyth website. Once you connect your wallet to the Pyth site and confirm your eligibility, you can automatically receive tokens.
Pyth Network’s first goal was to design an oracle capable of working with the financial industry and providing real-world data on the Solana blockchain. After achieving this objective, Pyth then expanded its blockchain oracle to work with smart contract execution on other systems.
Pyth is currently in the process of connecting with more traditional financial institutions to obtain more market data for its users. In addition to the goal of offering more real-time market data to more blockchains, Pyth also has plans for its community. Pyth Network stands to transition to a fully community-led decentralized autonomous organization soon. This DAO will decide on future projects to tackle and provide regulatory assistance for managing the Pyth Network data pricing system.
PYTH tokens are an important part of keeping the Pyth network functional. The community’s members use them to pay traditional financial institutions for the real-world data they publish on their price feeds. In addition to facilitating fee exchanges and smart contract execution, the PYTH token also assists with DAO governance and can be used to vote for things like software updates and fee changes.
There’s a maximum token supply of 10 billion PYTH tokens and an initial circulating supply of 1.5 billion. Pyth Network is using a token vesting scheme whereby 85% of the PYTH tokens will gradually be unlocked in the 42 months after the initial token launch. Pyth Network stands to distribute its tokens according to the following schedule:
Publisher rewards: 22%
Ecosystem growth: 52%
Protocol development: 10%
Private sales: 10%
Community and launch: 6%
PYTH is still extremely new, so there's not a lengthy pricing history to help users predict the future price of its digital assets. However, checking out social media reveals insightful details about pricing. Crypto commentators on Twitter/X suggest that the coin will trade for around $0.04 to $0.15 once it goes live. The PYTH token exceeded expectations when it was launched at a price of $0.30 before rising to its all-time high of $0.533249 on Nov 20, 2023. It’s currently trading at around $0.33 (as of Nov 22, 2023).
Despite its retracement in price, positive growth is expected by experts at CoinDataFlow, who predict the PYTH token will reach $0.297871 by the end of 2023 and go on to rise sharply to $2.15 in 2025.
Looking to trade the PYTH token? Bybit now offers the PYTH/USDT Spot trading pair for trading! Follow the simple steps below:
Sign up for or log in to your Bybit account
Go to the PYTH/USDT Spot trading page
Click on the Buy button and choose the amount you'd like to purchase
Confirm your payment to finalize the sale
In celebration of this listing, Bybit is holding an event where you can earn a share of the 80,000 USDT prize pool!
The first 3,000 new users who complete the following two steps between Nov 17, 2023, 10AM UTC and Dec 2, 2023, 11:59PM UTC will receive 20 USDT each:
Sign up for a Bybit account and complete Identity Verification
Accumulate a deposit volume of at least 1,000 PYTH; or deposit 100 USDT and use your Bybit account to buy any amount of PYTH via your first trade
If you’re already a Bybit user (prior to Nov 17, 2023, 10AM UTC), no worries — because you still have the chance to earn 5 USDT! Simply accumulate a deposit volume of 1,000 PYTH, or deposit 100 USDT and buy 100 USDT worth of PYTH using your Bybit account. Please note that rewards will be distributed on a first come, first served basis to the first 4,000 users.
PYTH is backed by a promising crypto project, and it's generating a lot of interest among crypto enthusiasts. The DeFi space has a real need for reliable data, and Pyth's aggregating data tools are poised to offer fast, accurate and affordable prices. Those looking to augment their portfolios with up-and-coming cryptos should certainly look into PYTH.
Though it cannot replace blue-chip tokens like Bitcoin, PYTH is ideal for market participants who like investing in new projects. Just remember that it's still a fairly new project, and you always need to be careful about overextending yourself and investing more than you can afford to lose.
Pyth Network has great potential to upgrade the decentralized finance space. Its extremely accurate data feeds ensure that the public gets the right information for its smart contacts, which may make it possible to create a variety of DApps and other web3 projects. Pyth Network is definitely a project worth watching.
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