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Oracle Counterpoint: Relationships between On-chain and Off-chain Market Data. (arXiv:2303.16331v1 [cs.CR])
cs.CR updates on arXiv.org arxiv.org
We investigate the theoretical and empirical relationships between activity
in on-chain markets and pricing in off-chain cryptocurrency markets (e.g.,
ETH/USD prices). The motivation is to develop methods for proxying off-chain
market data using data and computation that is in principle verifiable on-chain
and could provide an alternative approach to blockchain price oracles. We
explore relationships in PoW mining, PoS validation, block space markets,
network decentralization, usage and monetary velocity, and on-chain liquidity
pools and AMMs. We select key features from …
block blockchain computation cryptocurrency data decentralization eth features key liquidity market markets mining motivation network oracle pos pow pricing proxying relationships select space validation