# Discussion on A Very Cool Price Oracle

By [msfew](https://paragraph.com/@msfew) · 2023-09-23

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> I'm too lazy to write a traditional formatted blog post, so I'll just post our discussion on the subject here. You can read the content directly…

Discussion
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### 10:42 pm - me

This is an interesting, completely third-party-free price oracle ([UTXOracle.py](https://twitter.com/SteveSimple/status/1704864674431332503)). The idea is to statistically analyze the transactions in each block of Bitcoin (eg. Users usually send BTC transfers totaling a rounded number like $100), and predict the BTC price for that day.

### 10:56 pm - Fren

What’s the accuracy? It may be easy to manipulate, but it's really fun.

### 10:59 pm - me

The creator said “it's very accurate. It's not clear which exchange price is the "right" price. But it's right in the middle of all of them. Feel free to check yourself”.. Limitations: 1. you have to set a min and max first, so you can't predict prices until 2020; 2. you need a large sample of tx, so currently it can only generate daily prices.

### 11:00 pm - Fren

This could be a price feed, which would need to be calculated for the cost of manipulation though.

### 11:02 pm - me

In fact, on Ethereum, using Uniswap price directly is much better... But this is for a pure Bitcoin node, so this is why they use this approach.

Related Links
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[UTXOracle.py](http://UTXOracle.py): [https://twitter.com/SteveSimple/status/1704864674431332503](https://twitter.com/SteveSimple/status/1704864674431332503)

GitHub Repo: [https://github.com/Unbesteveable/UTXOracle](https://github.com/Unbesteveable/UTXOracle)

Replicated Heatmap for Ether: [https://twitter.com/bantg/status/1705260495920341052](https://twitter.com/bantg/status/1705260495920341052)

Other Discussions:

[![User Avatar](https://storage.googleapis.com/papyrus_images/2093c1a2993164775c036ea3730e206e490fabd4016cf19193bf913fb8baaf25.jpg)](https://twitter.com/lightcoin)

[light 📜](https://twitter.com/lightcoin)

[@lightcoin](https://twitter.com/lightcoin)

[![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/lightcoin/status/1712234615384035464)

Idea: create a price feed smart contract with a verifier for the UTXOracle program. Use prover to create a validity proof that UTXOracle was run on some recent txs to calculate current BTC price. Submit this proof to price feed contract → trust minimized BTC price feed.

[![User Avatar](https://storage.googleapis.com/papyrus_images/36082124104020d4685a3edabab34a0fed066fe42cbd944f90f16138311358c1.jpg)](https://twitter.com/TonyCai_)

[Tony Cai](https://twitter.com/TonyCai_)

[@TonyCai\_](https://twitter.com/TonyCai_)

[![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/TonyCai_/status/1711844976810766600)

UTXOracle: Everything you need to know (+ what are its current limitations?)  
  
UTXOracle is an innovative way that interprets the Bitcoin UTXO set to calculate the daily BTC price with remarkable precision.  
  
This opens the floodgates for more trust-minimized DeFi applications on

 [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 3](https://twitter.com/lightcoin/status/1712234615384035464)[

5:31 PM • Oct 11, 2023

](https://twitter.com/lightcoin/status/1712234615384035464)

[![User Avatar](https://storage.googleapis.com/papyrus_images/36082124104020d4685a3edabab34a0fed066fe42cbd944f90f16138311358c1.jpg)](https://twitter.com/TonyCai_)

[Tony Cai](https://twitter.com/TonyCai_)

[@TonyCai\_](https://twitter.com/TonyCai_)

[![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/TonyCai_/status/1711844976810766600)

UTXOracle: Everything you need to know (+ what are its current limitations?)  
  
UTXOracle is an innovative way that interprets the Bitcoin UTXO set to calculate the daily BTC price with remarkable precision.  
  
This opens the floodgates for more trust-minimized DeFi applications on

 [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 32](https://twitter.com/TonyCai_/status/1711844976810766600)[

3:43 PM • Oct 10, 2023

](https://twitter.com/TonyCai_/status/1711844976810766600)

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*Originally published on [msfew](https://paragraph.com/@msfew/discussion-on-a-very-cool-price-oracle)*