APRO performs a crucial role
When it comes to crypto, most mistakes that occur are not caused by poorly written code or poor intentions. Most mistakes originate from poor information.
An errant price feed can erase millions of dollars in seconds. A stale update can trigger a series of liquidations throughout an entire protocol. A tainted data point can sneakily suck all the trust out of an entire ecosystem before anyone even realizes something has gone awry. In the realm of decentralized finance, data is not an ancillary feature but rather the bedrock that all other features are built upon.
This is the environment that APRO operates in.
APRO is commonly explained through the lens of being an oracle, but this is actually somewhat inaccurate regarding the capabilities and potential of the technology. Oracles are generally considered messengers that carry numbers from the outside into the smart contract. However, APRO is somewhat of the opposite because it assesses and defends the truth before it reaches the blockchain.
Essentially, APRO is fixating on the solution for blindness found in smart contracts.
Blockchains excel at execution. When conditions have been set up for them, there is nothing they can’t do. The thing is that blockchains have no observation abilities. They have no knowledge of what the market is doing or what documents contain. Moreover, they have no knowledge if a real-world event occurred. In other words, they completely rely on external data. APRO is a solution for this purpose.
The uniqueness of APRO is its two-tier system that imitates reality regarding truth processing.
Information is not merely accepted for the mere fact that it exists but is processed and checked for truth.
The first level is a newsroom in its own right. APRO extracts information from a very eclectic set of sources. This includes market data, company announcements, business filings, structured databases, recorded content, as well as content that may be “very difficult to interpret even for computers.” This data is not delivered directly to the chain as might be expected.
These approaches and tools pick out useful facts, strip out unnecessary data that is worthless, and reformat data into organized reports that actually mean something.
Most importantly, confidence scores are part of these reports.
The program does not give a user the impression that it considers all facts as having an equal amount of worth.
A report from NewsBytes describing this type of AI technology reads as follows:
However, raw processing by itself is never sufficient. While the computer must process quickly, speed without accountability is dangerous. Consequently, in APRO, intelligence and authority are separated.
The second layer will comprise a decentralized verification node system. These nodes will work as editors and verifiers. They will verify the AI-created reports by sampling them and establishing their accuracy to challenge discrepancies and offer solutions to arrive at the truth through consensus mechanisms.
The division of responsibility is one of the most critical design decisions in the APRO system. Scale and speed are the responsibility of the AI. Rigor and accountability are the responsibility of human-aligned incentive schemes. The quality of decisions improves without incurring the costs of network congestion, even in the presence of high market volatility.
Aside from data verification processes, APRO also challenges the data delivery approach.
In most oracle systems, developers are forced into a particular update paradigm that may not necessarily be economically justified. APRO provides developers with not one, but two different modes of delivery.
The first one is “Data Push.” With this method, updated information is constantly pushed into the smart contract. This approach is imperative for those systems requiring the ultimate accuracy and have no time for delay. These systems include market-making algorithms, lending algorithms, liquidation algorithms, and those executing high-frequency trading logic.
APRO’s “Push” method ensures predictable data and consistency on the consensus layer.
Second, there is Data Pull. In this case, data fetches occur when it is required. Rather than having an ongoing feed of data on chain, developers can pose a question they require an answer for at that particular time. APRO nodes then provide an answer that gets signed off chain before submitting a proof that can be verified by the smart contract.
Efficiency gains are substantial. Gas costs decrease starkly. This model is well-suited for derivative contracts where a single resolution is required, insurance policies contingent on rare occurrences, and games which periodically need to be validated, not updated. Coders pay for truth only when truth matters.
The way APRO indexes prices to data further adds to how credible the company is. The nature of crypto markets is notoriously volatile, but such volatility should not contribute to the quality of the data being substandard. Instead, APRO indexes prices from various sources, for instance, through volume-weighted averages or time-weighted averages, and filters out outliers that may provide an incorrect feed.
During stressful market conditions, these mechanisms work to suppress false liquidations and defend protocols from any manipulations, which thrive during low liquidity conditions or situations with delayed update notifications.
Where the APRO questionnaire definitely differentiates itself, though, is within the capabilities regarding processing non-numerical data.
Usually, the oracle systems are comfortable dealing with prices and timestamps. However, the scope of APRO is very wide compared to the oracle systems’ normal functionality. The AI component of APRO has the capability to analyze the financial document and check its internal correctness, validate the figures, the signatures, and the authenticity of the documents. The process is very important in the context of tokenizing the assets.
To tokenize property, equity, revenue flows, or agreements, it takes more than a price feed. It takes proof. APRO creates a verifiable proof level that links off-chain documents and on-chain logic in a matter that can be trusted by institutions.
These features cascade into several areas. In DeFi, APRO facilitates secure lending, equitable liquidations, and intricate derivative models. In the realm of GameFi, it enables in-game economies to react to real-world situations without being vulnerable to abuse. In the realm of real-world assets, it gives the needed traceability and transparency to migrate legacy financial systems to the blockchain environment.
The whole thing is made possible with the help of the AT token. The main role played by AT is that it converts APRO into a self-recursive economy with the help of APRO. The data retrieval payment is made in the form of AT. This helps avoid spams and leaves only the legitimate data.
Governance is also decentralized. The influence over which data types are added and how those networks evolve lies with those that hold AT. Thus, APRO develops alongside its users and not because of them. Taken together, APRO is more than an oracle. APRO is an information infrastructure for a world where blockchains work seamlessly with the physical world. APRO doesn’t assume truth; it earns it. Given the ever-increasing scope of the Binance eco-system and the understanding that cross-chain applications will be the new standard, solutions like APRO become mandatory rather than optional. Deflated smart contracts are precarious experiments. Smart contracts fueled by truth are the driving engines of a new finance. Rather than asking whether APRO has any place in the future that is being envisioned for Web3, one might well ask how APRO might serve as the foundation for that future.
