full image - Repost: How Razor Network achieve decentralization (from Reddit.com, How Razor Network achieve decentralization)
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The existence of oracles in Blockchain is essential because the act as servers that access data from external sources and pools them into a Blockchain network. However, Oracles are mostly centralized with a high tendency of being corrupted due to central control.This is where Razor Network comes in. Razor is a cutting-edge decentralized oracle that provides data to smart contracts through the use of validators. How then does Razor Network achieve decentralization?To keep to oracle fully decentralized, the network uses the proof of stake (PoS) consensus mechanism. Here, validators lock their $RAZOR tokens by staking them on the platform and in turn provide data. This serves as a check to keep the validators honest.The validators are widespread and located everywhere so no one knows anyone to liase to bring false data. They accept job queries and fetch the information from the real-world, then they process these information and cumulates the result, and serves them to the requesting application.The data has to correspond with that of others. Validators who are honest are rewarded and those who are not honest get penalized and lose their stakes. This gets the validators very faithful and operates by the book & creates high level of security & decentralization.
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