Why Permissionless Oracles Matter
Data gatekeeping is holding dapps back. Switchboard’s permissionless oracles are tearing down barriers to data.
Decentralized applications (dapps) rely on oracles for access to critical operational data. However, data access can still be an issue with most leading oracle providers. Once developers find an oracle willing to provide the data their dapps need, they then have to wait for a third party (in this case, the oracle operator) to grant them access to it. Red tape and contract requirements can only add more friction for developers, ultimately resulting in bottlenecks to innovation and efficiency.
The barrier to data is real. And it isn’t just about delays. Many dapp builders struggle outright to find oracles to provide the exact data their dapps require. Providers are too rigid — they usually prioritize running data feeds that make sense for their bottom line and tend to be unwilling to adapt their solutions to niche use cases. This gatekeeping creates a problem for early-stage blockchain developers and small-scale builders. The lack of customizability in existing oracle solutions can be traced back to the same underlying cause: most oracles are permissioned.
In other words, in order to access the data it needs, your dapp needs to go through a door, but oracle providers have the key. And that poses a centralization risk for dapps: if a centralized party controls your dapp’s access to crucial operational data, is your dapp really decentralized?
In any case, relying on permissioned oracles makes dapps more vulnerable to single points of failure, either from downtime or manipulation risks. Plus, if a centralized party grants your dapp access to crucial data, who’s to say they can’t revoke it?
Enter Switchboard: The Permissionless Oracle Network
Oracles should work for their dapps — not the other way around.
That’s the core principle guiding Switchboard, the permissionless oracle network designed to enable developers and on chain builders — instead of gatekeeping them. Using Switchboard, anyone can spin up a custom data feed without the need for third-party approval, cutting through red tape and back channel conversations. Switchboard’s open-access model gets rid of the bottlenecks caused by permissioned oracle systems and truly democratizes access to data.
Create Your Own Feeds
Need a price feed for a newly launched token on a specific DEX pair not yet covered by major providers? A custom data stream tracking the real-time lending rates across multiple smaller lending protocols? With Switchboard, you don’t have to wait for a centralized operator to build it for you. You can just create it yourself using Switchboard’s easy-to-use, no-code interface. Pick your data sources from on chain and off chain inputs, and customize the parameters for your feed: source weighting, averaging techniques, update intervals and frequency, and bid/ask price logic. With Switchboard, you can easily tailor your feeds to your dapp’s needs, without relying on a middleman.
Switchboard enables Drift to respond to user demand by supporting a broader range of markets — including newer and niche tokens — through customizable oracle feeds and price logic. This flexibility has enabled Drift to list assets like CLOUD and META, and launch new isolated pools with tailored logic. Thanks to Switchboard’s permissionless architecture, Drift can spin up new markets quickly in response to emerging token popularity.
- Drift
Security in Decentralization
And here’s the thing: since Switchboard eliminates reliance on middlemen, no single party controls the flow of data to your dapp. This makes not just dapps plugged into Switchboard, but the whole Switchboard oracle network more resilient. The network’s decentralized set of independent, data-verifying validator nodes ensures Switchboard’s data feeds have maximum uptime and security, while also reducing censorship risks.
The Switchboard oracle network isn’t just open for developers needing data, it also incentivizes oracles to be as efficient and reliant as possible with staking, powered by Jito. High-performing oracles will gradually receive more stake over time and are prioritized in routing for the most critical feeds.
Don’t Ask for Permission… Just Build
Switchboard is knocking down barriers on both the demand and supply sides with a more decentralized oracle network that enables permissionless data feeds.
Whether you’re building a DeFi protocol, launching a real-world asset platform, or you’re knee-deep in the memecoin trenches, Switchboard gives you immediate, permissionless access to a robust, flexible, and customizable oracle network.
As a Web3 builder, is it better to apologize or ask for permission? Thanks to Switchboard, you don’t have to worry about either — at least when it comes to your dapp’s data.
Ready to Learn More?
It’s not just about ‘permissionless-ness.’ Check out our latest article to get an overview of what makes Switchboard’s Data Feeds better than those from competing oracle solutions:
To learn even more about Switchboard:
- Visit the Switchboard Website
- Explore the Developer Documentation
- Join the Discord
- Follow on X
- Read the Whitepaper
