The term ‘oracle’ has become quite commonly used within crypto circles across the globe in recent years, and rightly so. This is because these novel offerings are designed to connect various blockchain projects with a wide array of off-chain data, thus allowing for the advent of many novel use cases. That said, most traditional oracles are faced with two core issues. Firstly, they require a centralized entity/intermediary to facilitate their access to external, real-time data — as a result of which third parties can potentially alter the data being supplied to it. Secondly, centralized oracles often have to forego many of the privacy advantages put forth by smart contracts, thereby posing major risks to the system’s overall security. A smart contract can be thought of as a program/transaction protocol designed to automatically execute, administer and note relevant events and actions as per the terms of a predefined digital agreement. Decentralized oracles explained As highlighted earlier, centralized oracles serve as single, stand-alone entities that provide data from an external source to a smart contract operatin ..
Support the originator by clicking the read the rest link below.
