Millie on Warpcast

Millie pfp

Truth Oracle is a decentralized source of Truth that verifies subjective real-world information onchain. It enables the provision of Truth to applications in ways that were previously unviable. If that sounds interesting, you will love this thread. Let's break it down 🧵 1/n

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Millie pfp

The Oracle utilizes the power of intersubjective Truth to resolve disputes with strong, yet practical guarantees. It's the first optimistic oracle that can scale to meet the demands of micro-applications. It can be used to optimistically verify virtually any offchain data. 2/n

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If you're interested in the provable details, I recommend reading the whitepaper. But for a high level understanding of the protocol, this thread should build the necessary intuition. Link to paper - https://truth-oracle.gitbook.io/truth-oracle Now, let's dive in 👇

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Millie pfp

So, what are the current standards for optimistic oracles? Most modern day designs reduce down to token voting and economic security. Resolutions are determined based on the outcome with the greatest economic weight behind it. 4/n

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Typically, claims are optimistically considered valid unless otherwise disputed within a challenge window. When a dispute is filled, token holders have the first and last say. When voting ends, the option with the most economic support is set as the final result. 5/n

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Millie pfp

Below is a depiction of the process:

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Naive dispute resolution schemes work in preventing spam and griefing attacks because when outcomes are objectively verifiable, the narrow subjectivity of single-step arbitration doesn't cause too many problems. But that design falls apart the moment outcomes are ambiguous. 6/n

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I know what else you're thinking though; "wait, in that case can't anyone just use raw capital to manipulate outcomes?" And that is a very good question, to which the answer is; yes, naive token voting is definitely vulnerable to economic manipulation. 7/n

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In fact, basically every app that uses optimistic oracles has some multi-sig backstop. Generally, this multi-sig belongs to the team behind the project. Usually I would criticize such a construct, but in this case these projects have no other choice. 8/n

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Leaving their apps vulnerable to manipulation is simply not a viable solution. However they also want to be credibly neutral in their application's resolution process, so they end up outsourcing the service to crude token-voting providers anyway, despite the issues. 9/n

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The limitations I've discussed so far are what motivated Truth Oracle. This protocol aims for a maximally credible dispute resolution process which is not limited to the subjectivity of a single token holder base or a small group of actors. 10/n

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Instead, Truth Oracle permits multi-stage escalation with proposed resolutions from independent, interdisciplinary actors at every step. The nature of this process is what makes this oracle intersubjective, as apposed to typical single layer dispute resolution frameworks. 11/n

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One of the innovative aspects of this protocol is its permissionless approach to Proof of Reputation. Truth Oracle employs a lottery system to encourage provably reputable identities within the Ethereum ecosystem, who are recognized by the protocol, to serve as Attesters. 12/n

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Millie pfp

In a typical Truth Oracle implementation, there are 3 separate arbitrators, each proposing resolutions in different stages within a resolution path. They operate under the following ascending hierarchy: - Committees - Token Holders - Attesters illustration of the process:

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