On-chain Components

The on-chain components consist of aggregation logic and incentive management related mechanisms.

1. Aggregation logic- Teams must define the proper method for aggregating validator reports into a single blockchain oracle update. Considerations include resistance to manipulation, performance, simplicity, and more. Methods vary significantly for different data types and use cases.

   For an exhaustive explanation of robust aggregation and the EO aggregation library, please refer to Robust Aggregation 101

2. Incentives mechanism- Define metrics for data quality and implement tools to evaluate operator performance. Based on these metrics, rewards and penalties are distributed through smart contracts. For an exhaustive elaboration on incentives design please refer to Incentives Management