Over the past few weeks, we have outlined our reasoning on a number of subjects. We’ve discussed the power of prediction markets, how this power is being stifled by incongruous and anachronistic regulations (and what we plan to do about it), and our professional evaluations of the various approaches being taken by others in the industry.
We’ve also touched on the importance of the oracle component when it comes to smart-contract based prediction markets, and explained the basics of our own oracle framework. And while we have mentioned that we intend to start small and grow from there, and explained that so far everything is going exactly according to plan, we do recognize that the tactical exposition of information can be a powerful tool of leverage, so we have taken care not to reveal too much, too soon.
We are happy to fill the role of the underdog, and part of our growth strategy is to take advantage of the market’s underestimation of our project’s potential. Even so, as our crowdsale draws to a close, we feel it is time to describe (at least the first phase of) our Master Plan.
The Oracle Wars
The next battleground for decentralization will undoubtedly be around oracles (after all, control of the oracle amounts to control of the entire contract, when execution depends on external data in any way). In other words, oracles represent a “centralization chokepoint” threat to many different types of smart contracts, including those for prediction markets. Though we’re not seeing antagonistic oracle-based control exerted today, if any of the decentralized prediction markets start to enjoy any sort of significant success (whether this is Augur, Gnosis, Delphi, or another project entirely), it will inevitably prompt efforts to compromise or centralize the oracles involved.
We won’t risk letting our hard work go to waste by ignoring this threat. Delphi’s focus will be totally dedicated to the oracle component. Ou...