What is NEST Protocol Crypto Review & is the Blockchain Based Oracle Network a Good Investment?

4 min read

If you wanted to find out more about NEST protocol or just want to know what it is, then this review will guide you through it and help give you a better understanding if it would be a good investment. 

What is Nest protocol

In short, NEST is a blockchain-based oracle network. Third parties can access valuable pricing information through the protocol. There are currently more than 60 oracles in the network as part of its strategy. Decentralized exchanges (DEX), DeFI networks, and P2P lending protocols rely on these oracles to provide pricing data.

What Problems Does NEST Protocol Attempt to Fix?

The NEST Protocol seeks to eliminate one of the biggest problems facing Dapp developers, access to reliable data. DeFi protocols rely on accurate and timely pricing data to provide their services to the market. Networks like DEXs don’t have order books and instead, need pricing information imported from outside sources to remain accurate.

NEST Protocol (NEST) - Twitter

NEST Protocol (NEST) – Twitter

Inaccuracies

The use of oracles has been on the rise in the blockchain community. An oracle is an off-chain sensor that can communicate data to and from the blockchain. These sensors are vital to many top-performing platforms. One of the biggest issues that early oracles suffered from was centralization.

A blockchain is only as accurate as the data it receives. Developers realized that they needed to figure out a way to ensure that oracles were performing accurately. Additionally, the low volume of data created by these oracles makes them more susceptible to manipulation. Their solution was to create a decentralized oracle network. The system could cross-reference data from multiple oracles to determine the correct information.

Additionally, this self-analyzation enables the NEST Protocol to eliminate oracles that don’t provide correct information from the equation. This redundancy and self-healing characteristics make the NEST Protocol a secure option for developers to consider moving forward.

NEST Protocol Eliminates the Middleman

Anytime you add a third party into the mix, there are usually added costs and delays. The same goes for oracle management. Dapps require off-chain information all the time to function properly. The NEST Protocol eliminates the middlemen from the oracle equation. All data is autonomously gathered by sensors. Companies don’t need to hire third parties which in the end provides more savings that can be passed on to users.

Benefits of NEST Protocol

There are a lot of benefits that NEST brings to the market. For one, its low costs make it an ideal option for startups and Dapp developers. Firms can save on overhead and implementation costs by leveraging the NEST Protocol’s infrastructure. The network was designed to be easy to navigate and integrate into legacy systems.

Interoperability

The developer went to great lengths to make the protocol chain agnostic. In this way, it can supply valuable data to a variety of decentralized networks and more. This strategy helped the network develop a large community of active developers and businesses.

Speculative Investment Tool

Nest Protocol provides users with a high-performance speculative investment tool. Users can monitor market values in real-time across the entire sector. The decentralized nature of the protocol ensures that the pricing data is always accurate and timely. It’s crucial for DeFi protocols to receive their pricing data in near real-time. As such, NEST was built from the ground up to react quickly to any value fluctuations in the market.

Passive Returns

NEST Protocol introduces a unique rewards program to help miners secure returns for their participation. Miners obtain NEST tokens by paying ETH commissions and taking certain price fluctuation risks. The network also leverages verifiers to the equation. They earn rewards based on the calculation of the price variance.

Free up Time

Dapp developers understand that it would be hugely expensive to pay someone to monitor the price of digital assets daily and transfer that information to their network. NEST Protocol automates the entire process which removes human intervention from the equation. This approach reduces errors, improves trackability, and creates a more secure network compared to centralized options.

How Does NEST Protocol Work?

NEST leverages a Nodeless Permissionless Quotation system to provide price facts on the Ethereum blockchain. The network accomplishes this task by constantly scanning the market and top-performing exchanges via oracles. These oracles will then combine their pricing data to ensure accuracy. Once the accuracy of the data is confirmed, its added to the blockchain.

NEST Protocol Authentication System

The protocol combines a unique incentivization system to provide earning opportunities. Miners submit quotes for verification. This process requires the miner to submit a smart contract with the quoted assets included. For example, if a single ETH goes for $1000, a node would submit an ETH, $1000, and the relevant gas fees in this step. Once the pricing is registered, the node can withdraw the assets from the smart contract.

On-Chain Verification

Third-party apps can monitor the price of their relevant cryptos in real-time. The network provides these groups with a direct means to monitor price fluctuations. The system also integrates a two quotation mechanism.

Reverse Verification Mode

All miners must put their money where their mouth is to participate in the network. Requiring miners to make real contributions in the form of locked crypto brings many benefits to the market. This approach is far more effective than enabling oracles to upload pricing data with no risks.

 

Token

The NEST token plays a vital role in the actions of the network. Users need to hold NEST to join the network systems. NEST is an ERC-20 compliant token that can be found on most top-performing DEXs at this time. Users can also leverage NEST to send value globally in a permissionless manner. Notably, NEST has a predictive issuance with all tokens generated directly from miners.

Nest Protocol (NEST)

How to Buy Nest Protocol (NEST)

Currently, NEST Protocol (NEST) is available for purchase on the following exchanges.

Gate.io – This exchange was established in 2013, and is one of the more popular & reputable exchanges. Gate.io currently accepts most international jurisdictions including Australia & the UK.  USA & Canada residents are prohibited.

Huobi Global – Established in 2013, Huobi Global has since become one of the world’s largest digital asset exchanges, with an accumulated trading volume of US $1 trillion.  It should be noted that Huobi Global currently does not accept USA or Canadian residents.

MEXC Global, Phemex, and Bibox are other exchanges.

The NEST Protocol Decentralized Machine For Price Facts

The NEST opens the door for more immersive and effective Dapps to hit the market. The network operates as a decentralized machine for price facts that offers secure and reliable data. For these reasons and many more, the NEST protocol continues to secure more users daily.

I hope this has given you a better understanding of Nest protocol (NEST) and helped you decide if this would be a good investment or not.

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