An open-sourced, decentralized network of oracles bringing off-chain data onto the Cardano blockchain using inter-node vetoing to ensure data accuracy.
On-chain smart contracts are used to connect to the external world and interface with off-chain data. The data gathered is aimed at the world of DeFi, yet oracles for other industries will be produced when the demand for them arrives. Clients can also request specific oracle data to support the off-chain computation of smart contracts.
Data sources are split into two categories, primary and secondary, with primary sources weighted more heavily than secondary sources. Primary sources include: decentralized and centralized exchanges and well established on-chain tools. Secondary sources are other oracle providers and it is this which makes Charli3 an oracle aggregator.
After validation data will be stored and reported via a partnered reverse oracle and made accessible to token holders via a subscription service.
A council made up of representatives from participating nodes receive rewards, in the CHARLI3 token, for verifying data. These data providers and nodes are kept honest through the staking of tokens.
If an operator proves to be inaccurate then they lose a part of their stake, and it is transferred to accurate operators. This incentivizes honesty and inter-node auditing, through vetoing, and builds in a third party fail-safe to the protocol.
Tokens are used for both data consensus and for voting on proposed changes to the network. Larger stakes, often owned by nodes, are associated with a ELO-based reputation system, a gamified reputation system based on win, draws and losses against other participants in the system. Therefore, the most trustworthy nodes are rewarded with greater voting weight.
CH3 is currently live on Ethereum, after the project went through the CardStarter launchpad and accelerator. Once smart contracts are launched on the Cardano mainnet CardStarter will migrate the whole project to the Cardano blockchain. As a result of their relationship with CardStarter CHARLI3 will be the preferred and suggested oracle solution for all future CardStarter IDOs.