As a decentralized Proof of Stake oracle chain, Ojo is powered by a distributed set of validators. Validators all vote on the prices used in Ojo's price feeds with the validators who submit the most accurate prices being rewarded and the validators who submit inaccurate prices being penalized. In order to guarantee high levels of participation and decentralization, validators who fail to vote are jailed - meaning a significant portion of their stake is slashed and they are removed from the active set.
By leveraging the financial incentives associated with Proof of Stake consensus and introducing advanced security measures, Ojo will drastically reduce oracle risks for protocols which reference its data feeds.
What is Proof of Stake Consensus?
Proof of Stake consensus requires network participants called "validators" to lock up crypto as collateral in order to be eligible to verify and publish the data being added to the blockchain. Proof of Stake blockchains are generally faster, more secure, and more environmentally friendly than Proof of Work blockchains like Bitcoin.
What are Validators?
In Proof of Stake validators are network participants responsible for verifying and publishing information on a blockchain. Validators generally do not know or trust each other and are financially incentivized to keep a network operational and secure.