Why Flux is the one piece of blockchain infrastructure that’s filtering the noise?

No one likes the noise. Unless… they don’t know what it is.

The very first thing one needs to know is that Flux is bringing a fresh touch to existing Oracles. It’s not just an Oracle — it is a structure of Oracles, APIs, and Human sources. You will understand a bit later why this fact is important.

Why does blockchain need a complex structure of diverse data sources?

Our world is overloaded with data that is coming from every corner.
Taleb in his book “Fooled by randomness” writes that everything that we see or write or hear can be divided into 2 simple categories: signal and noise.

While the signal is the meaningful information that you are seeking, noise stands for all random facts, events, and their variations that interfere with the process of signal searching. For instance, a signal is when you find THAT SONG on Spotify, and the noise is 100500 other songs that you listened to find THAT ONE. A signal is to know by fact that Flux will be listed on Coinbase on 20th December (just an example), and the noise is all the journalists and influencers claiming their own predictions on the date. Our world and the blockchain world, in particular, are full of noise.

That’s what noise looks like. You may feel that these dots at the top are rather thick and form the line, therefore the t is stable after z(t) is higher than one. BUT this is a wrong assumption and the dots you see in the picture are useless in making any conclusion.

What is especially interesting is that the human brain prefers to perceive information, random events, or even occasional numbers as signals. This happens because we need structure in order to be able to consume information. We want to connect the dots and create context. We also want to be proud of ourselves when our “identification of the signal” works out. However, even if the signal doesn’t work out, our brain is still not ready to give up.

Less noise means more trust. More acceptance. More growth. Practically, why do we need to get rid of the noise? So that Elon Mask could not pump Dogecoin by posts on his Twitter account. So that all prices in the blockchain field would not dump after the news on the unsustainability of blockchain and everything related. So that we could trade like Quants and so that the blockchain field could further develop into new non-financial sectors such as energy and medicine.

How to get rid of the noise?

In statistics, the answer would be — to design an experiment/research in a way that is able to minimize deviations and variations. The very first and simple piece of advice given to handle noisy data is to collect more data. Then make sure that this data meets quality standards.

In real-life settings, we also need to design the blockchain environment around data collection in a similar way.

This is you at the top of the world, peacefully listening to the signals only!

Let us summarize what we know:
- the world is full of noise and randomness;
- our minds are flawed because they cannot divide signals by noise;
- we need trustless systems that are able to identify signals and get rid of the noise for us.

Is Flux able to do that for us?

There is no simple answer to this question. Potentially the design Flux proposes can minimize noise by aggregating huge amounts of diverse & quality data in real-time from Human sources, APIs, and Oracles. Multi-chain support somewhat guarantees higher data normality. And… the decentralized structure of Flux and its governance model make me feel like I can be the one helping to get rid of the noise. And this is powerful. Why?

Data is power. Giving power to the wider community and a large number of stakeholders pays out. The simplest argument is the more stakeholders are engaged, the more diverse data you receive, and the more powerful decisions you can make. At least it should work this way given a set of assumptions.

Other data providers in the sphere mostly enhance the participation of technical specialists in their solutions. Meanwhile, the majority of blockchain users that produce ecosystem growth are left out. And with the decentralized governance model proposed by Flux and a set of other project initiatives such as interface whitelisting for data services, registry curation, and dispute resolution by staking and delegating, this bottleneck is solved. At the same time, the transparency of both external and internal data running through blockchain veins increases, and overall inclusivity and accessibility to the field are developing.

Sharing some Flux is always a good thing :)

You can find out more about how Flux and its competitors are dealing with data here: https://www.fluxprotocol.org/blog/is-flux-the-best-bet-for-arbitrary-data

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