Deep Dive
1. Purpose
Blockchains cannot directly access data from outside their networks. Pyth acts as an oracle—a service that supplies external information to smart contracts—so financial applications can use market prices for tasks like valuing collateral or settling trades. (CoinMarketCap)
2. Data and architecture
Pyth gathers data directly from publishers, including exchanges and trading firms. Its pull model means an application requests an update when it needs one, rather than relying only on constant updates being sent to the blockchain. Pyth also provides confidence intervals, which indicate the uncertainty around a reported price. (CoinMarketCap)
3. PYTH token
PYTH is used in network governance and Oracle Integrity Staking, a mechanism intended to support reliable data provision. The token has a stated maximum supply of 10 billion. (CoinMarketCap)
Conclusion
Pyth Network is financial data infrastructure for blockchains, and PYTH supports parts of its governance and data integrity system. How effectively can its data model serve new onchain financial applications?
