What is Switchboard? Switchboard Project Overview

In the Web3 world, accurate and quickly updated data is a key factor determining the success of DeFi, GameFi, and many other applications. Switchboard - a decentralized, permissionless Oracle protocol, was created to solve this problem by providing price data, random data, and custom data sources on demand. Unlike traditional Oracles, Switchboard operates on an On-Demand Oracle model, only providing data when needed, helping to optimize costs and reduce the load on the network. With an update speed of less than 400 milliseconds, high customizability, and strong security through Trusted Execution Environment (TEE), Switchboard is being trusted by a number of major projects such as Kamino Finance, Solend, MarginFi, and Drift. This article will help you understand Switchboard, from how it works, its unique features, to its development potential in the future. ## What is Switchboard? Switchboard is a decentralized, permissionless Oracle protocol, launched in 2021 and quickly becoming one of the leading Oracle solutions in the Solana ecosystem. This protocol provides price data, random data, and custom data sources for hundreds of DeFi, GameFi, and decentralized applications (dApps). The strength of Switchboard lies not only in its extremely fast data update speed (less than 400 milliseconds) but also in its flexible customizability. This protocol allows anyone to create and deploy new data feeds without going through a third party. This permissionless feature makes Switchboard an ideal tool for projects that require specialized data, meeting the diverse needs of the Web3 market. ## Why is Switchboard outstanding? Currently, Switchboard processes hundreds of millions of data requests per week, supporting over 500 different assets across more than 10 Blockchains. Unlike traditional Oracles that usually provide fixed data, Switchboard applies an On-Demand Oracle model - only providing data when requested, helping to optimize costs and reduce latency. Thanks to the combination of flexibility, high speed, and superior reliability, Switchboard has become the choice of many leading projects such as Kamino Finance, Solend, MarginFi, and Drift. ## Unique features of Switchboard - **Permissionless Data Feed Creation** - Anyone can create and deploy data feeds without the need for third-party approval. - **Highly Customisable Data Feeds** - Users can customize update frequency, data sources, aggregation algorithms (Averaging Techniques), and integrate both on-chain and off-chain data. - **On-Demand Oracle** - Operates on a pull-based model: only provides data when requested, helping to save resources and reduce the load on the network. - **Oracle Aggregator** - Aggregates data from multiple sources such as Chainlink, Pyth, ensuring accurate, diverse, and highly redundant information. - **Randomness Generation** - Provides transparent and highly secure random numbers using Trusted Execution Environment (TEE) to serve applications like games, lotteries, and prediction markets. - **Low Latency** - Data update latency is only around 400 milliseconds, 2-3 times faster than other popular Oracles. - **Cross-Chain Compatibility** - Can be deployed on multiple Blockchains, not limited to Solana. - **Built-in Security Mechanisms** - Uses Trusted Execution Environment (TEE) and Guardian Verification to ensure data integrity. ## Switchboard's Operational Mechanism Switchboard consists of several key components that ensure the system operates accurately and securely:

Core Components

• Trusted Execution Environment (TEE)
  • Ensures that the Oracle's source code is not modified and the data is always accurate.
• Oracle Queue
  • A list of approved Oracles, ensuring that only Oracles that meet the standards are allowed to provide data.
• Guardian Nodes
  • Special nodes responsible for monitoring and verifying Oracles.
• Oracle Nodes
  • The main nodes that collect, process, and sign data.
• Oracle Router (Frontend & Gateway)
  • Routes the data flow, protects against DoS attacks, and coordinates tasks.
• Oracle Worker
  • Performs the task of retrieving data, processing, and signing before returning it to the user.

Switchboard's Operating Steps

• Step 1: Onboarding Guardian and Oracle Node
  • Guardian is registered and authenticated through TEE.
  • Oracle Node needs to be verified by 1/3 of the Guardians before joining the Oracle Queue.
• Step 2: Initializing Data Feed
  • Users can create data feeds through a permissionless interface.
  • Each data feed is assigned to an Oracle Queue and only uses Oracles within that Queue.
• Step 3: Sending Data Request
  • Users send requests to the Gateway, which forwards them to the Oracle Router for task distribution.
• Step 4: Processing and Signing Data
  • The Oracle Worker retrieves data from the specified source, performs processing according to the algorithm (e.g., average, taking bid/ask price).
  • The processed data is digitally signed and sent back to the user.
• Step 5: Uploading Data On-Chain
  • Users perform on-chain transactions, updating the new data feed on the Blockchain.
• Step 6: Continuous Security
  • Oracles & Guardians are periodically checked through TEE to ensure the source code is not tampered with.
  • Guardians monitor the entire system to detect anomalies.

Development Roadmap

Current Stage

• Supports more than 10 Blockchains, expanding the ecosystem.
• Provides data for 500+ different assets.
• Successfully deployed on major projects like Kamino Finance, Solend, MarginFi, Drift.

Future Plans

• Support more Blockchains, expand to Ethereum Layer 2.
• Develop AI-driven Oracle features to improve data accuracy.
• Collaborate with DeFi Protocols, expand Real-World Asset (RWA) applications.

Updating Information

Currently, some information about Switchboard is still in the process of being updated, including:

• Team: Detailed information about the founding members and the technical team behind the project.
• Investors: List of investment funds and strategic partners supporting the project.
• Tokenomics: Token allocation mechanism, staking policies, and the project's economic model.
• Exchanges: Platforms currently supporting the trading of Switchboard's token (if any).

This information will be released in the near future. Please follow Switchboard's official channels to stay up-to-date!

Project Information Channels

• Website: https://switchboard.xyz/
• Twitter: https://x.com/switchboardxyz

Conclusion

Switchboard is a powerful permissionless Oracle solution, providing fast, accurate, and highly customizable data for DeFi, GameFi, and many other applications.

The rapid development since 2021 and the trust from many major projects have demonstrated Switchboard's potential to shape the future of Oracles & DeFi.