Can the Equilibria Oracle Network make money from Data?
Equilibria (XEQ) is a cryptocurrency they built to cash in on data.
Equilibria is supposed to help smart contracts retrieve information about token swaps, loan collateralization, Esports, weather, betting and much more. The hope is to monetize the data with the Equilibria (XEQ) and sell it.
Equilibria uses Oracle Nodes to pay block rewards as base payments for data. The Oracle Nodes operate on the Equilibria Blockchain. Interestingly, the Equilibria Blockchain operates on both the PoW and PoS models.
Equilibria combines Proof of Work and Proof of Stake
To elaborate, the Proof of Work (PoW) rewards people or bots for performing tasks on the blockchain. Equilibria, for example, rewards miners with half the block reward. Additionally, Equilibria’s Oracle Nodes take the other half of the block reward as a base payment.
Conversely, Proof of Stake (PoS) rewards those who prove ownership (stake). They intend PoS cryptocurrencies to show ownership in blockchain constructs. To that end, Equilibria creates staking pools that allow anybody to stake; take ownership of XEQ through a web or desktop wallet.
The XEQ token will serve as the native coin for staking and payments on the Equilibria Oracle Network. Smart contracts; digital robots will use the Equilibria Oracle Network and Oracle Nodes to sell data and pay for data.
How Equilibria plans to monetize data
Its builders claim the Equilibria Oracle Network “can deliver any real-world data to smart contracts through a scalable blockchain-agnostic private ecosystem.”
The hope is that Equilibria can guarantee payment for the data in XEQ. One source of the data will be on-demand data feeds smart contracts can buy data from.
For example, a trading smart contract could buy cryptocurrency price data from an exchange. Similarly, a betting smart contract could buy data about sports scores from a sporting website. Plus, a loan smart contract could buy data about interest rates or risks from a ratings agency.
Theoretically, you could build a smart contract that writes loans based on data from the Equilibria Oracle Network. In detail, the algorithms in the smart contract will use information from the on-demand data feeds to write loans.
Similarly, the smart contract could make extra money by selling data through the Equilibria Oracle Network.
The hope is that anybody could mine Equilibria (XEQ) and build Oracle Nodes through the Equilibria Oracle Network.
The Equilibria users claim their Oracle sidechain, Pythia can build a solution to any blockchain problem. A sidechain is a less secure chain that serves as a shortcut around the blockchain. The hope is that a sidechain is faster because it has less security.
Another hope is that Pythia can connect blockhains such as Ethereum (ETH) and Monero. Interestingly, Equilibria began as a fork to the Monero blockchain.
Smart contract creators could money with Pythia because the Equilibria Oracle Network will charge a small fee on every Pythia transaction. Notably, Oracle Nodes could receive 40% of Pythia’s fees.
One proposed solution is the Ethereum Pythia Adapter, which will allow Ethereum dApps (decentralized apps) or digital robots to accept XEQ payments through a cryptocurrency they call wXEQ. I imagine the wXEQ is an Ethereum Request for Comment (ERC-20) cryptocurrency.
What Value does Equilibria have?
There is a powerful interest in Equilibria (XEQ). For example, the XEQ token was Coinmarketcap’s fourth most trending cryptocurrency on 2 May 2021.
However, Coinmarketcap ranked Equilibria as the 3347th largest cryptocurrency on 4 May 2021. Notably, Equilibria (XEQ) had a 28.37₵ Coin Price, a Fully Dilluted Market Cap of $5.813 million, and a 24-Hour Market Volume of $80,309 on 4 May 2021. Similarly, there was a Total Supply of 20.560 million XEQ on the same day.
Thus, Mr. Market thinks XEQ has some value and likes the idea of Equilibria. However, Equilibria, like most cryptocurrencies, could not win over cryptocurrency speculators.
Why does Mr. Market ignore Equilibria?
Interestingly, one of the most surprising aspects of the cryptocurrency market is the conservatism of its participants. In particular, cryptocurrency buyers stick to the old reliables and ignore everything else.
For example, Coinmarket the two largest cryptocurrencies on 4 May 2021 were Bitcoin (BTC) and Ethereum (ETH). Similarly, the fifth-largest cryptocurrency was Ripple (XRP) on the same day. Bitcoin is the oldest crytpcourrency, and Ethereum and Ripple have been around for years.
Thus the oldest cryptocurrencies are among the most popular. Hence, new cryptos such as Equilibria have a tough time breaking through.
Another argument I have to make is that the cryptocurrency market is inherently conservative. To explain, I think some people buy cryptocurrencies because they resemble traditional notions of currency or gold.
For example, many people buy Bitcoin (BTC) because they think it retains value in an age when traditional methods of exchange are increasingly unstable. Notably, Bitcoin’s price soars as deficit rises and talk of Modern-Monetary Policy (MMP); using unlimited spending to grow the economy, spreads.
Hence, one reason cryptocurrency is so popular is that it offers an illusion of a traditional economy or economic control. Such sentiments could drive the popularity of Equilibria because investors will want data about the new economy.
In the final analysis, I think Equilibria (XEQ) is an interesting blockchain and cryptocurrency we need to watch. I think somebody will make enormous amounts of money from smart contract data.
Only time will tell if Equilibria will make that money. Equilibria is a blockchain all cryptocurrency speculators need to examine.