Blockchain Market Data Extraction for Decentralized Exchanges
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Solution Overview
Problem
Decentralized exchanges (DEXs) face challenges in generating and delivering live, standardized market data from on-chain transactions due to the diversity of protocols and latency issues, making it difficult to provide real-time data across multiple DEXs.
Innovation Solution
A system that collects live blockchain transaction data, analyzes it during consensus building, and extracts transaction data from blocks before finalization to generate standardized market data using protocol-specific models, enabling off-chain delivery across multiple DEXs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If transaction data is extracted from blockchain after finalization, then data accuracy is ensured, but real-time delivery is lost due to latency
Solution Approach 1:
The system performs preliminary extraction of transaction data from blockchain blocks before they are fully finalized. By monitoring blocks as they are being constructed and extracting data at an intermediate stage, the system achieves real-time delivery while maintaining sufficient accuracy through validation mechanisms that ensure data integrity even before final confirmation.
2Measurement precision
If protocol-specific extraction models are used for each DEX, then data extraction accuracy is improved, but system complexity increases
Solution Approach 1:
The system implements a universal data extraction framework that can handle multiple DEX protocols through a single standardized interface. Protocol-specific extraction models are encapsulated within this universal framework, allowing the system to maintain high accuracy for each protocol while avoiding the complexity of managing separate independent extraction systems. The universal framework provides standardized data structures and processing logic that work across all protocols.
3Speed
If live blockchain data is collected during consensus building, then real-time market data is enabled, but data reliability may be compromised due to potential block reorganization
Solution Approach 1:
The system implements feedback mechanisms that continuously monitor blockchain consensus status and block finalization states. When blocks are extracted during consensus building, the system receives feedback about the block's status and can detect if reorganization occurs. If reorganization is detected, the system automatically handles the situation by requesting re-extraction or using alternative validation methods to ensure data reliability is maintained despite the real-time extraction approach.
Data Source
AI summary
Methods and systems for providing mechanisms for generating live market data for decentralized exchanges (DEXs) from transaction data extracted from a blockchain are provided. In embodiments, blockchain data associated with at least one token is obtained from a blockchain. The blockchain data corresponds to at least one executed function of a DEX protocol associated with the at least one token. Transaction data associated with the at least one executed function using at least one model generated based on an implementation of the DEX protocol is extracted from the blockchain data corresponding to the at least one executed function. The extracted transaction data is structured into a standardized format for market data corresponding to the at least one executed function associated with the at least one token, and the market data for the at least one token is outputted via one or more off-chain distribution channels.