Blockchain & Cryptocurrency Glossary

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.

  • search-icon Clear Definitions
  • search-icon Practical
  • search-icon Technical
  • search-icon Related Terms

Pyth Network

1 min read
Pronunciation
[pith net-wurk]
Analogy
Pyth Network is like a fleet of specialized couriers delivering stock prices directly to your smart contract as soon as they change.
Definition
A decentralized oracle network designed to deliver high-fidelity, low-latency financial market data to blockchain applications.
Key Points Intro
Pyth Network focuses on timely, accurate market data for on-chain protocols.
Key Points

High-frequency: updates data multiple times per second

Decentralized publishers: trading firms submit price feeds

Cross-chain: data bridged via Wormhole and VAA

Aggregation: median-weighted algorithm ensures accuracy

Example
A DeFi lending platform on Solana uses Pyth’s SOL/USD feed for real-time collateral valuation.
Technical Deep Dive
Pyth’s on-chain publishers sign price attestations which are aggregated using a weighted median. Wormhole’s Verifiable Action Approvals (VAAs) transport data to target chains with consensus proofs. Consumers validate VAAs and update local price oracles via light clients.
Security Warning
Reliance on a limited set of publishers can introduce centralization risk if a key publisher is compromised.
Caveat
Bridge latency and network load can cause occasional data staleness during high volatility.
Related Terms
Wormhole
Oracle
Solana

Pyth Network - Related Articles

No related articles for this term.