# Decentralized Data Delivery with RedStone

By [ivanxx.eth](https://paragraph.com/@ivanxx) · 2023-08-12

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In the rapidly evolving landscape of Decentralized Finance (DeFi), **reliable and real-time data feeds** are the lifeblood of smart contracts and dapp.  
  
**RedStone, an innovative Oracle system**, has emerged as a pioneering solution to address the challenges and limitations of traditional data delivery methods. By leveraging decentralized networks and a modular design, RedStone revolutionizes how data is sourced, aggregated, and delivered, ushering in a new era of trust and efficiency in DeFi protocols.

![](https://storage.googleapis.com/papyrus_images/075312fb8e8f83faeb5e72d034cdf20e911d34f266f8dbc47e9c0684e0a07ae4.png)

Decentralizing Data Delivery:
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![](https://storage.googleapis.com/papyrus_images/082df8b584c197643a9f35972b98d3882caee4012c21dc6ca24460fcf5adab10.png)

Unlike traditional Oracle systems that rely on centralized data sources and intermediaries, **RedStone taps into the power of the Streamr network**. This decentralized infrastructure allows data providers to deliver signed Oracle data to end users, **eliminating the need for continuous on-chain data delivery.** This approach not only conserves resources but also enhances the overall user experience by reducing latency and maintaining data integrity.

Modular Architecture and Data Availability
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RedStone's modular architecture marks a departure from monolithic designs that inhibit scalability. **The system introduces** a novel data availability layer, **where data is first placed before being fetched on-chain as needed.** This revolutionary approach enables RedStone to broadcast a diverse array of assets at high frequency to a cost-effective layer, minimizing on-chain congestion and reducing operational costs. By marrying data availability with on-chain efficiency, RedStone ensures that only essential data reaches the blockchain, optimizing performance and scalability.

**Data Flow and Validation**
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![](https://storage.googleapis.com/papyrus_images/230cbf2aff56a910d2d6d0470135150d5eab4c53727b848c1522282f1f9cab6a.png)

**RedStone's data flow is a meticulously** orchestrated process involving multiple sources, aggregation nodes, and cryptographic validation. Data feeds are sourced from **a myriad of providers, including off-chain DEXs** (Binance, Coinbase, Kraken), on-chain DEXs (Uniswap, Sushiswap, Balancer), **and aggregators** (CoinmarketCap, Coingecko, Kaiko). **These feeds are aggregated** in independent nodes operated by data providers, who utilize methodologies like median, TWAP, and LWAP, bolstered by safety measures such as outlier detection. Once cleaned and processed, the data is **signed by node operators**, attesting to its quality and authenticity.

**End users play a pivotal role in RedStone's decentralized data delivery.** Through a multi-step process, signed Oracle data is pushed on-chain, either by dedicated **relayers** operating under predefined conditions, **bots** executing liquidations, or end **users** interacting with DeFi protocols. Cryptographic verification within the protocol ensures that the data's origin and timestamps are valid, safeguarding the integrity of the information.

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*Originally published on [ivanxx.eth](https://paragraph.com/@ivanxx/decentralized-data-delivery-with-redstone)*