We recently did an AMA in BlockTalks, on March 1st at 02.00 PM UTC. Many of you might have participated or many of not. But we make sure no one missed out on the knowledge shared by Zamir Wayandoui, COO at Ares Protocol so here we are up with the AMA transcript, for those who missed the live session, this blog post will be a saver & feeder of knowledge for them.
Introduction Questions Asked By Team BlockTalks
Q1. Could you please introduce Ares Protocol to our community in layman’s terms?
Ans — Ares Protocol is a decentralized oracle protocol build on Substrate. It connects the Polkadot ecosystem with the real world by providing secure and reliable real-world data to all the different parachains.
Q2. What are the advantages of Ares Protocol to other alternatives in the Blockchain field?
Ans — The main difference between other oracles and Ares Protocol is that Ares Protocol has implemented node randomness which increases its decentralization and security.
Another advantage of Ares Protocol is that it verifies the correctness of the data on-chain which makes it more resilient to delays and thus more scalable.
One distinct feature of Ares Protocol is that a portion of the validator rewards as well as the punishment fees of malicious nodes are transferred to the treasury.
These funds are used to compensate users who suffer losses due to malicious data.
Q3. What are the major milestones Ares Protocol achieved so far & what are in the future pipeline?
Ans — We are very proud that Ares Protocol received a grant from the Web3 Foundation in November of last year.
Another achievement is that we completed the implementation of our core oracle module at the beginning of February.
Now we are excited about our token listing which we expect this month.
The next step will be the launch of our testnet and of course, the mainnet will follow.
Questions Asked on Twitter For Ares Protocol Team!
Q1. Your protocol will provide verifiable random numbers on the blockchain, which will allow blockchain and NFT games to play more, but is it in your plans to expand your utility list, to serve other areas of entertainment, through your ecosystem?
Ans — Ares Protocol as the oracle of Polkadot can provide real-world data to any kind of application. The application scenarios for games alone are endless.
Verifiable random numbers generated by Ares Protocol for example can be used by games to generate unpredictable gameplay scenarios or it can enable the minting of NFTs
But we plan also other application scenarios like IoT devices. Ares Protocol can work as a secure middleware between these IoT devices and the blockchain. It can verify the data coming from IoT devices before delivering it to the blockchain.
Q2. How do plan to spread awareness about your project in different countries where English is not spoken well? Do you have local communities for them to let them better understand your project?
Ans — We definitely are in the process of building local communities to spread awareness of the Ares Protocol and the Polkadot ecosystem in general.
Also, the translation of our material to different languages is in the pipeline. Stay tuned!
Q3. Ares provides secure and reliable data services for the Polkadot ecosystem. In the future, do you plan to provide your services to other blockchains? What are the main chains that your decentralized oracle services are compatible with? Are these oracles 100% decentralized?
Ans — As you correctly said, Ares Protocol is the oracle of the Polkadot ecosystem. It will provide reliable data services to the Polkadot parachains and its DeFi applications.
Of course, Ares is also compatible with the Ethereum network. It supports all the dApps that run on Ethereum.
As far as other blockchains than Polkadot and Ethereum are concerned we are very optimistic to expand Ares Protocol to those blockchains.
However, our main focus now is on the Polkadot network, because we believe that it will be together with Ethereum the backbone of Web 3.0
Q4. In Blockchain Industry there are 3 core issues: security, scalability, and interoperability which will bring competitive advantages to blockchain projects. So, how does Ares Protocol Project will solve these problems?
Ans — In regards to scalability: Instead of validating each transaction submitted by an aggregator on its own, we use cutting-edge optimistic rollups to verify the data on-chain.
By doing so we prevent delays in for example price updates.
Another optimization is that Ares Protocol only validates data points that are challenged by a challenger. A challenger has an economic incentive to find malicious data. He gets rewarded with the tokens of the malicious aggregator if he correctly finds malicious data.
In regards to security:
We use a verifiable random function to randomly select the aggregator node so that the aggregator cannot be predicted and it is not always the same aggregator that provides the data points. Thereby we reduce the risk of a single point of failure.
In regards to interoperability:
Since Ares Protocol is based on Polkadot it is interoperable by nature with all the other Polkadot parachains via XCMP
Q5. Since Ares Protocol utilizes the Proof-of-Stake consensus algorithms, what kind of penalties will be applied for malicious nodes, also how do you encourage honest nodes?
Ans — Malicious aggregators get punished by taking their staked tokens and distributing them between the challenger, the reputation committee, and the treasury.
Honest aggregator nodes get rewarded with fees for providing reliable data. Another reward mechanism for aggregators is reputation points that honest aggregators receive. Aggregators with the highest reputation value are qualified to join the Reputation Committee which validates data and gets extra rewards by doing so.
Questions Asked by our BlockTalks Community Members during live Session to Ares Protocol Team!!
Q1. what are the ways that generate profits/revenue to maintain your project and what is its revenue model? How can it make benefit win-win to both investor and your project?
Ans — Token holders can stake their Ares tokens on the reputation committee. They will get a share of the fees collected by the reputation committee. Aggregators also make a profit if they provide reliable data to the network. And also challengers can make a profit by “catching” malicious aggregators.
Q2. What is your most ambitious goal for the Ares project? We would appreciate it if you could share with us any Upcoming Updates
Ans — Our goal is to make Ares Protocol the oracle of Polkadot. We want it to be a central infrastructure piece of the Polkadot ecosystem. Similar to what Chainlink is to the Ethereum network.
Q3. Who is your typical partner? What is the benefit of cooperation for both?
Ans — Our typical partners are basically all DeFi applications and dApps. AMMs, Lending protocols, blockchain games, NFT platforms… They all are in need of real-world data.
Q4. Does Ares have any plans to build an NFT or staking program and also are there any plans to list on DEX or just exchanges like Binance, Kucoin, etc?
Ans — Ares Protocol has a staking program for token holders. They can stake their tokens on the Reputation Committee. Our initial listing will be on a centralized exchange. The reason for that is the currently very high gas fees.
Q5. Why choose the Polkadot network to develop Ares Protocol? Will you expand on Ethereum too?
Ans — We chose Polkadot instead of Ethereum because of the gas fee problem that we are facing now. A benefit of the on-chain verification on Polkadot is that it prevents price delays caused by high gas fees.