DeFi products rely on real-world information, or so-called off-chain information. There are several DeFi examples that require such information, such as Compound , Aave , Maker or Acropolis . This information is provided by oracles† The oracles are important building blocks that ensure that the DeFi network functions properly and that it can continue to grow. They are also responsible for allowing DeFi to remain transparent and independent in a market that wants to mature. Unfortunately, most DeFi protocols do not have their own solution for the data provision. They are therefore dependent on less transparent data sources. In addition, many DeFi apps and oracles do not disclose their sources and methods. This is the backbone of the smart contracts, and it contains hundreds of millions of capital. That could cast doubt on DeFi’s transparency. That is exactly what DIA wants to change.
I’m going to talk about DIA in this blog, along with the DIA token. I’m going to explain to you what exactly DIA is and how it works. We’re also going to take a behind-the-scenes look at this project ‘s team and take a look at the DIA rate. I will also tell you where to buy the DIA token.
Please note: please note that the text below about ‘DIA (DIA)’ as well as the explanation to this should in no way be construed as advice. The choice for whether and in what way you want to trade (crypto) and which choices you make in terms of investment is up to you and you alone. We are not financial advisors.
Here you can first watch a short video showing how DIA works.
- 1 What is DIA?
- 2 DIA is important for DeFi and traditional financial platforms
- 3 How does DIA work?
- 4 Who is on the DIA team?
- 5 What is the DIA token?
- 6 What is the price of the DIA token?
- 7 Where can you buy the DIA token?
- 8 What is the best way to store the DIA token?
- 9 Conclusion
What is DIA?
DIA (Decentralized Information Asset) is an open source platform for financial information. It is a Swiss non-profit organization. They collect and approve data with the help of rewards in the form of crypto. This allows market participants to provide, share and use financial and digital asset data. They see it as their mission to democratize financial data. You can compare it to what Wikipedia has done with information about central encyclopedias. Together with the rewards and wisdom of the community, they can find, approve and deliver reliable financial data.
DIA’s data sources and methods are transparent and completely publicly available. Everyone can see them. Crypto rewards are used. These rewards are for those involved in approving data sources as they are added and during their use.
DIA is important for DeFi and traditional financial platforms
In general, DeFi platforms are prone to oracle vulnerabilities. Curve Finance , Ampleforth and several other platforms are considered independent financial protocols. They serve a variety of financial needs. Think of borrowing money, flash loans, yield farming or margin trading . So it is of the utmost importance that the oracles they use are transparent and accurate. That is why DeFi platforms want to use transparent and verifiable solutions from third parties. This is important because it allows them to ensure the sustainability of their core product.There are also known cases where the protocol is misled. The protocol then incorrectly pays out crypto. Flash loans in particular are a good example of this.
Flash loan attacks have been happening more and more over the past two years in the DeFi world. A lot of money is made this way. With a flash loan you can borrow money without collateral, but you also have to repay your loan at the end of the transaction. If you cannot repay the loan, the entire flash loan will fall into the water, and no transactions will be performed. If you find a weakness in a liquidity pool during a flash loan, you can get a lot of money or crypto from that pool.
Traders and financial institutions
Individuals or corporate entities involved in trading activities can greatly benefit from open source and reliable data streams. This is of interest to anyone in the financial or crypto world, such as fund managers, traders and private investors.
Anyone who intends to provide accurate information about financial markets or digital assets can collect highly reliable data on the DIA platform. Think of crypto data platforms, financial news sites or a market research institute.
Regulators and Financial Authorities
Tax authorities and financial regulations depend on reliable data to make sound decision-making.
DIA caters to all of these different needs in a totally unique way.
How does DIA work?
DIA works in a fairly simple way. I am now going to explain in five steps how DIA works.
- Data request — if token holders are looking for a specific dataset that has not yet been published by DIA, they can submit a request ticket. This ticket must therefore be financed. If the requested information can be provided, it is linked to a reward. This reward is paid in DIA by the applicant, upon approval of the information.
- Submit data — In response to the data request, a scraper is set up by the data provider. They then connect to the APIs or on-chain smart contracts to pass the data on.
- Approve — data analysts verify the codes submitted by staking. If a code appears to be wrong, anyone who stakes tokens can challenge the code submitted. Now the DIA community is springing into action. Anyone who stakes DIA can participate in a voting process. This is how it is determined who has the right solution. You now get a reward for finding the right solution. You can also get rewards if you actively cooperate in finding bugs in the system. You will also be rewarded if you find errors, security flaws or tampering attempts. If you further improve the platform, or help build the structure and security of the platform, you will also receive a reward.
- Data storage — Approved data is stored in an immutable, open source database and published on the DIA platform.
- Usage — you can access data through oracles (off-chain) or APIs (on-chain). Historical financial data is accessible free of charge. However, if you want access to live pricing information or to APIs, DIA tokens will be charged.
In the image below you can see what the architecture of DIA looks like.
Who is on the DIA team?
It is not easy to find information about the team behind DIA. There is nothing to be found on their website, and even Google didn’t help too much. So I resorted to the LinkedIn profile of DIA. Here you can find 19 profiles, two of which turn out to be founders of the project. I would like to introduce these two to you.
- Michael Weber — co-founder and CEO. He has a financial background. It is therefore not surprising that he has a passion for finance, data and blockchain ,
- Paul Claudius — co-founder and board member. His interests are in the fields of Fintech, DeFi, blockchain, tokenization, digital assets and the metaverse. He is also the founder of several other companies.
What is the DIA token?
The DIA token is both an ERC20 token and a BEP20 token . Because of the latter you can also send and use it on the BSC ( Binance Smart Chain). This means cheaper gas costs. It is a governance or management token.
The DIA token enables the community to manage the platform. Anyone who owns this token can formulate and submit proposals to improve the platform.
The token has three main uses.
- Administration — if you own DIA tokens, you can vote on the future of the platform.
- Approval — By staking tokens, you can get rewards and approve data from existing oracles and help resolve conflicts.
- Payments — To access data streams or certain APIs, developers must pay you with DIA tokens. Historical data is accessible free of charge.
A total of 200 million tokens have been minted, of which 41,430,434.00 or 21% are in circulation. The market cap on October 11, 2021 is $83,469,579.
Below you can see the exact distribution of the tokens.
The release of the token is also spread over several years. Together with the relatively small share of tokens the team gets, these are good signs. It shows that the team is not there for the short term, and wants to quickly run off with a so-called ‘back pull’ with the inlay. Rather, this indicates that the team is interested in a long-term development of the project.
What is the price of the DIA token?
If you want to invest in the DIA token, a good start is to know what the price is. If you are already going to trade, you also want to make a profit. You can make a technical analysis to see what the best buy or sell moment is.
On August 7, 2020, this token was first listed on CoinMarketCap. The DIA token was trading at $0.89 at the time. In early September, we saw a preliminary high of $4.32. After that it slumped a bit and it took until March 2021 for the price to go up again. The preliminary ATH was reached on May 5, 2021 with a price of $5.0746. After that, the price fell very quickly and very sharply. In September 2021, there was another rebound to $2.33. At the time of writing, mid-October 2021, the price is $1.86.
At CoinMarketCap , it is between 400 and 500 in 458. This coin has a good long-term outlook in my opinion. Certainly if Bitcoin continues to rise in 2021. But not only this, the fact that oracles are needed in the decentralized financial world also counts. Many DeFi projects depend on oracles. Therefore, it seems that there is still a role for the Dia project. I think that the token could still experience a good price development. If you want to invest in this coin, it is important to do your own research.
Where can you buy the DIA token?
The DIA token is for sale on Bitvavo . Bitvavo has included this coin in its offering at the beginning of September 2021. Most leading CEXs also offer this coin, such as Binance , Gate.io and KuCoin . There are also many liquidity pools on DEXs like Uniswap where you can find a DIA pair. Bitvavo is probably the most convenient and simplest solution for anyone living in the Netherlands or Belgium. Click on the widget below to start trading DIA on Bitvavo right away.
What is the best way to store the DIA token?
You can store the DIA token in several ways. The first option is to store the wallet on the exchange where you buy the token. However, keep in mind that there is always a risk that a stock exchange could be hacked.
As a second option, it is better to have an online wallet such as MetaMask or a similar wallet. Now you are in possession of the private keys. It’s already getting a lot harder for a hacker to get to your coins. However, if you manage to lose your private keys, you will no longer have access to your own coins. You can then no longer access your wallet. For example, if your computer crashes. These private keys are therefore important and you should keep them well, preferably in different, safe places.
As a third option you also have a hardware wallet such as Ledger the X or S version or from Trezor. Now your coins are safely offline and no one can touch your coins. However, the same story applies here for your private keys. Keep it safe and in a few different places.
Oracles will play an important role in the future of decentralized finance. The smart contracts themselves cannot obtain information from the real world. So the role of oracles will only increase. DeFi is also the fastest growing crypto sector within the crypto ecosystem. This means that a project like DIA will do well sooner or later. In this case it seems later, but with their setup and ideas, you would almost think that they will claim their part. There is never a guarantee for this, but the future seems bright.
The idea that information has to be approved, and therefore becomes more reliable than with the competitors, is well put together. The price of the DIA token is not looking very good at the moment, but I wouldn’t be surprised if this starts to look a lot better in the future. If you want to invest in the DIA token, do your own research first.
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com