In a recent AMA hosted by Zulu Network co-founder Luke, John Jones (CBO of Supra Oracles) joined to discuss the evolving landscape of blockchain technology, particularly focusing on the role of oracles and the future of decentralized finance (DeFi) on Bitcoin.
The conversation provided valuable insights into how Supra Oracles is addressing key challenges in the blockchain space and enhancing the capabilities of Bitcoin.
Link to the full Space here: https://x.com/i/spaces/1lDxLlEjdeRxm
Introduction to Zulu Network and Supra Oracles
Luke kicked off the session by introducing Zulu Network as a pioneering Bitcoin layer 2 solution that integrates Zero-Knowledge (ZK) proofs, a trust-minimized Bitcoin bridge, and a UTXO innovation layer. He stated, “We’re bringing revolutionary methods to scale and advance the number one blockchain network — Bitcoin.” Luke emphasized Zulu Network’s commitment to enhancing Bitcoin’s infrastructure through innovative technologies.
John Jones introduced himself as a veteran in the blockchain space, having been involved since late 2016. He shared his journey from attending early Ethereum meetups to co-founding Supra Oracles. John explained that Supra aims to solve critical issues in the oracle space, particularly around data integrity and efficiency in DeFi applications. “We’re here to power DeFi through secure and reliable price feeds,” he noted.
https://medium.com/media/1e53b079dddaa36ca06d62d824a36bbd/hrefUnderstanding Oracles and Their Role in DeFi
As the discussion progressed, Luke asked John to elaborate on what oracles are and their significance in blockchain ecosystems. John explained that blockchains are essentially “walled gardens” that can only communicate within themselves. He elaborated, “Without smart contracts and oracles, it’s very difficult to power DeFi on any L1 or L2.” Oracles serve as bridges between blockchains and external data sources, allowing smart contracts to access real-time information necessary for executing transactions.
John highlighted that oracles enable DeFi applications to function effectively by providing accurate price feeds and other essential data. He compared oracles to an “internet bus” that facilitates cross-chain communication, emphasizing their crucial role in enhancing the functionality of smart contracts.
Supra Oracles’ Unique Approach
Luke prompted John to discuss how Supra differentiates itself from other oracle providers like Chainlink. John explained that while Chainlink has been a significant player in the oracle space, it does not apply layer 1 security principles to its price feeds. “What we do at Supra is apply L1 security and validation principles,” he stated. This approach involves randomizing validators within their network to enhance security and reduce latency for data delivery.
John also addressed concerns about front-running and oracle extractable value (OEV), practices that can undermine fairness in trading. He expressed his commitment to preventing these issues within Supra’s architecture: “We want to create a system that prevents front-running completely.” By ensuring that data is delivered directly to protocols without prior access for market makers, Supra aims to maintain integrity in trading environments.
Discussion on AI’s Role in Blockchain
As the conversation evolved, Luke and John delved into the intersection of AI and blockchain technology. Luke expressed his belief that AI could significantly enhance decision-making processes within decentralized networks. He noted, “AI can analyze vast amounts of data quickly, enabling smarter contracts that adapt based on real-time information.” This adaptability could lead to more efficient DeFi applications that respond dynamically to market conditions.
John echoed this sentiment, emphasizing that integrating AI with oracles could further improve data accuracy and reliability. “Imagine an oracle system powered by AI that can predict market trends based on historical data,” he said. “This would not only enhance trading strategies but also provide users with insights they’ve never had before.” Both panelists agreed that leveraging AI alongside blockchain technology could unlock new possibilities for decentralized applications.
Enhancing Bitcoin Infrastructure
The conversation then shifted back to Bitcoin’s infrastructure. Luke asked John how Supra is specifically enhancing security and scalability for Bitcoin. John highlighted the launch of Dora 2.0, which significantly reduced latency for oracle data from two seconds down to sub-second rates. He remarked, “If we can bring this user experience to DeFi on Bitcoin, we will enable much more efficient operations.”
John also pointed out that until recently, there were limited opportunities for Bitcoin holders to earn yield on their assets due to the lack of smart contracts on Bitcoin. Through Supra’s ecosystem, they are working towards creating mechanisms for users to restake their Bitcoin and generate yield while maintaining security.
How Oracles, Bitcoin, and AI are powering innovation together
The AMA provided a comprehensive overview of how Zulu Network and Supra Oracles are collaborating to enhance the Bitcoin ecosystem through innovative solutions in oracle technology and decentralized finance. Both Luke and John expressed optimism about the future of Bitcoin as a platform for DeFi applications, emphasizing the importance of security, efficiency, and user empowerment.
Luke emphasized the projects’ collaborative spirit by stating, “By leveraging our respective strengths — Zulu’s focus on scaling Bitcoin and Supra’s commitment to secure data delivery — we’re setting the stage for groundbreaking developments in DeFi.” John echoed this sentiment by highlighting the potential impact of their partnership: “Together, we can unlock new opportunities for users while ensuring security and efficiency across decentralized applications.”
As both projects continue to develop their technologies, they are committed to fostering an environment where decentralized solutions can thrive — ultimately benefiting users across the blockchain landscape. The insights shared during this session highlight the potential for collaboration between projects like Zulu Network and Supra Oracles as they work together towards a more innovative future powered by oracles, Bitcoin, and AI.
About Zulu Network
Zulu Network is the first Native Bitcoin DePIN Layer optimized for AI + DePIN implementations. With Zulu, everyone will have the ability to stake assets, help facilitate operation of various DePIN and AI protocols and earn on the Bitcoin Network.
Zulu is an innovative blockchain protocol that combines the security of Bitcoin with the flexibility of EVM infrastructure to foster a new decentralized economy, focus on AI & physical infrastructures, and empower users to stake their assets to power the future of DePIN innovation.
