Blog:
A new era – laying HUMAN’s foundations in DeFi
HUMAN Protocol technology is broadly applicable; and that its application to data labeling has been only the beginning of its potential utility.
Now, the Foundation has started work on a new wave of applications. The work of bringing data-labeling tasks on-chain to power the future of ML will continue; but, alongside this, the Foundation is building new ways to utilize the underlying technology.
The very same technology that is used in a HUMAN perception task, such a hCaptcha, has many potential alternate applications. Just as the technology that powers ML can also be utilized for bot-blocking (as in our Proof of HUMANity tech) so can it be applied to many new use cases.
The basic process is: providing users (to the tune of millions) with an API through which they can answer a question; and providing the technology to automatically check that response; and reward the worker if they are correct. This basic flow has limitless utility.
DeFi is built upon price data. To receive pricing data, DeFi protocols must leverage reliable networks of oracles. There are many problems with current oracle systems, from over centralization, to a lack of robustness (which, really, are one and the same thing). If DeFi ends up with overly centralized, off-chain, and unreliable data, it would harm the growth of the whole sector.
HUMAN can try to ensure that doesn’t happen.
HUMAN would, in the case of DeFi, provide an on-chain oracle. For instance, a DeFi protocol needs a reliable update on the price of Bitcoin fifteen minutes ago. It is worthwhile noting that it is less likely that HUMAN would operate as a sole oracle, and more likely that it would act as a contributor – particularly useful in the case of disagreements.
To receive the Bitcoin price, the DeFi protocol launches a job (in the form of a smart contract) on HUMAN Protocol; human workers are tasked with following a link to a reliable source of price information, where they can enter to find the price fifteen minutes ago, and submit an answer. In turn, they would receive a small payment for the work.
The Foundation has already achieved recent partnerships with Pyth and EQIFi Finance, which you can learn about in our newsletter. See what Pyth had to say about our role on their Twitter.
This work has also been exemplified by IMOO, the Information Market On-chain Oracle. This is a perfect example of how HUMAN technology can be applied as an oracle – information markets (or prediction markets) require up-to-date information on event outcomes. Instead of a HUMAN user relaying the price of Bitcoin (although if the market is about the price of Bitcoin, it could also do so), they could attest to the winner of an election.
If a hundred thousand people can be polled in a short window of time, this provides valuable, on-chain information for markets to expedite their payment process, and protect themselves from arbitrage.
There will always be new areas which the Foundation can apply this technology to. The work will be ever expanding, ever growing; building a basic suite of products which can become the foundations of new and existing industries. In the gold rush, it was easy for everyone to scramble for the gold in the rocks and caves; there were those, too, who thought to manufacture the pickaxes. That is what this suite of technology can provide; the foundations, tools, and utility to maximize the growth of expanding industries.
For the latest updates on HUMAN Protocol, follow us on Twitter or join our Discord. Alternatively, to enquire about integrations, usage, or to learn more about HUMAN Protocol, get in contact with the HUMAN team.
Legal Disclaimer
The HUMAN Protocol Foundation makes no representation, warranty, or undertaking, express or implied, as to the accuracy, reliability, completeness, or reasonableness of the information contained here. Any assumptions, opinions, and estimations expressed constitute the HUMAN Protocol Foundation’s judgment as of the time of publishing and are subject to change without notice. Any projection contained within the information presented here is based on a number of assumptions, and there can be no guarantee that any projected outcomes will be achieved.
