Nest Protocol
Nest Protocol is a decentralized pricing oracle network built on the Ethereum blockchain that utilizes a unique "quote mining" mechanism to ensure that off-chain data is synchronized with on-chain prices. A distributed pricing oracle network delivers price information outside the blockchain in a decentralized manner, without a central entry point or governing authority.
Nest Protocol (NEST's) creators are still unknown, but the network has expanded tremendously since its inception because to the value it offers the blockchain community. Nest Protocol has enabled more efficient and immersive Decentralized Applications (dApps) to access a larger audience and market.
The biggest problem with most oracle services is that they tend to use centralized exchanges. Since centralized oracles are managed by a single entity, a significant amount of faith must be placed in that entity. The repercussions of relying too heavily on a single third party can be serious. If the oracle is hacked, the smart contract is affected, as is the whole blockchain. NEST Oracle seeks to address this issue by being a fully decentralized oracle.
Even though there are many decentralized price prediction protocols on the market, such as Chainlink, NEST stands out in a number of ways. The unique thing about it is that it makes a price directly on the chain, instead of having to upload price data from outside the chain. It also uses a verification system, which sets it apart from similar oracles.
In this network, the following three entities interact: Miners: People who take part in the contract by submitting price quotes. Also, they need to lock in a certain amount of the quoted asset and pay a commission fee to get NEST tokens. Verifiers: A verifier accepts the quoted price offer and locks a larger amount of the asset than the miner, which needs to be more than double the miner's amount to prevent fraud. If the quoted price is different from the market price, verifiers can trade at the quoted price to make an arbitrage profit and then submit a new price to be added to the chain. Price Callers:These are often DeFi protocols or institutions that pay a charge to the NEST Protocol.
The use cases of the Nest Protocol are: The platform also provides users with a safe place to store their data. The NEST Protocol uses quotation mining to motivate users to hold their NEST tokens. The bigger the number of token holders that utilize the protocol, the greater the quantity of tokens that will be returned to them.
| DATE | NEWS/EVENTS | IMPACT |
| 03/02/2022 | Nest Protocol collaborates with Blockchain Magazine and Blockchain Wire | +28% Increase
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| 07/08/2020 | Nest Protocol gets listed on Huobi Global exchange | +230% Increase |
The NEST Protocol combines blockchain data with decentralized real-world data to make more accurate predictions about the market trend. As a completely decentralized oracle, NEST Protocol assists in resolving a number of problems inherent to centralised oracles. This enhances the possibility of widespread use of blockchain technology in the real world, bridging networks and developing a secure, trustworthy system for everybody.
