Building & Managing Data Feeds through Multisig Soltuions
Switchboard protocol provides a permissionless way to customize data feeds to your specific use cases. Our approach has always been developer-first, allowing developers to build feeds through our low-code interface, the Publisher app and manage seamlessly all in the same application.
As our ecosystem protocols grow and scale together with Switchboard, there will be protocols that require a similar set of data feeds. Take example of a group of DeFi protocol, they are likely integrating with similar crypto assets and thus, requiring a similar set of price feeds to plug into their protocols.
In order for teams and developers to co-own data feeds in a secure manner, a multi-signature (Multisig) wallet solution will be able to achieve it.
Building and Managing Data Feeds through Multisig Solutions
After receiving requests from mainly DeFi protocols, we’ve integrated with Multisig solutions on Solana to bring this feature to our users. Switchboard users are now able to utilise Multisigs to build, fund and manage their data feeds with external parties.
What is a Multisig?
A multi-signature wallet allows a group of users to approve a transaction before it can be executed. Many individuals and teams desire to have multiple parties sign off on a transaction, such as payments or withdrawals before it can be executed. This allows for more robust security, as it spreads the responsibility of your digital assets to multiple parties, and avoids a single point of failure in the case of a compromised individual or wallet.
Multiple users can be required to manage any on-chain transaction, for example requiring multiple users to sign a payment transaction, purchasing an NFT, withdrawal from a wallet or in Switchboard’s use case: updating the settings and funding of a data feed.
How does Multisig work with Switchboard?
When creating a data feed, users can opt to integrate their data feeds with a Multisig wallet. To do so, they will either need to:
- Create a feed through a Multisig wallet and have its authority immediately under the Multisig wallet’s address upon creation;
- Create a feed natively on Switchboard’s Publisher and transfer its authority to a Multisig wallet address (as shown in image).
This integration allows multiple users in the Multisig to gain ownership of the data feed and to execute transactions responsibly such as funding the lease of the feed or updating the feed configurations.
Benefits of using Switchboard through a Multisig solution
Bringing back the example from above, a group of DeFi protocol can set up a Multisig wallet to manage a group of price feeds that they require for their protocols. By doing so, they can save on funds by sharing feeds, instead of funding them individually. Since fees are shared amongst more parties, they can opt for the best feed security by maximising the number of jobResults and oracleResults for each feed.
The integration helps improve developer operations on the protocol side but ultimately, the end users benefit greatly from this as well. The knowledge of knowing that the protocols are using a set of price feeds controlled through a Multisig wallet — provides an additional layer of security as responsibility and cross-checking are heightened.
Switchboard users are able to utilise Multisig applications to build, manage and fund data feeds to not only benefit on the protocol level but for their end users too.
Links and resources
Other links: https://linktr.ee/switchboardxyz