Scribd
Upload
1 views

Blockchain Oracles - Copy

The document discusses the role of blockchain oracles in enhancing the functionality of blockchains by enabling real-time interaction with external data sources, thereby addressing issues such as immutability and smart contract errors. It outlines the working mechanisms, types, design patterns, use cases, and the pros and cons of oracles, emphasizing their importance in automating processes and ensuring data accuracy. The conclusion highlights the necessity of decentralized oracle networks for the reliable integration of external data into smart contracts, which is vital for the advancement of blockchain technology.

Uploaded by

f20230186
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
1 views

Blockchain Oracles - Copy

The document discusses the role of blockchain oracles in enhancing the functionality of blockchains by enabling real-time interaction with external data sources, thereby addressing issues such as immutability and smart contract errors. It outlines the working mechanisms, types, design patterns, use cases, and the pros and cons of oracles, emphasizing their importance in automating processes and ensuring data accuracy. The conclusion highlights the necessity of decentralized oracle networks for the reliable integration of external data into smart contracts, which is vital for the advancement of blockchain technology.

Uploaded by

f20230186
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 12

Blockchain

Oracles Blocksoc BPHC

BY-
Manas Gupt
Contents Problem with
About
Blockchain and
Introduction Blockchain
how Oracle
Oracle
solves it

Working of Decentralised
Few types of
Blockchain and Centralised
Oracles
Oracle Oracles

Oracle design Some use cases Pros and Cons


patterns of Oracle of Oracles

Conclusion
Introduction
BUT FIRST OF ALL
What exactly is Blockchain?
A blockchain is a distributed ledger shared among a
computer network's nodes, best known for its role in
cryptocurrencies to maintain secure and decentralized
transaction records.
It can also make data immutable in any industry.
However, external data can't directly interact with a
blockchain and must be entered manually.
Blockchain oracles address this by enabling real-time
interaction between blockchains and external data
sources, reducing manual entry, bias, and errors.
Problem with Blockchain
•Immutability: Permanent data entries, even if incorrect.
•Smart Contract Errors: Irreparable damage from flawed data.
•Security, Scalability, Mobility: Challenges in maintaining secure, scalable,
and mobile transactions.

How Oracle Solves it ?


Oracles act as trusted bridges, sourcing
external data into blockchains for smart
contract execution, ensuring reliable data
integration and consensus among nodes.
About Blockchain Oracle
Blockchain oracles connect third-party applications and services with
blockchains by supplying external data to smart contracts, which are
designed to be isolated from off-chain information.
Oracles enable smart contracts to access and use external data,
expanding their utility.
Without oracles, smart contracts would only interact with on-chain data,
limiting their functionality.
Oracles verify, query, and validate external data before transmitting it to
the blockchain
Working of Blockchain Oracle
•Blockchain oracles connect blockchain to real-world
data. They give information to smart contracts,
which use it to do things based on specific rules.
• For instance, in a financial contract, an oracle
might send real-time prices.
• If the price reaches a set point, the contract could
automatically buy or sell assets.
•Oracles get data from outside sources and organize
it for smart contracts—a step called "data
aggregation." This data is turned into "events"
before it's sent to smart contracts to use.
Decentralized and Centralized Oracle
Decentralised Oracle Centralised Oracle

•Multiple independent oracle •Accessed by one party and


node operators and multiple serves as the sole data
reliable data sources. source for smart contracts.

•information provided is more •More vulnerable to exploits


trustworthy than that provided and other forms of harm.
by centralized oracles since it
is not based on a single
source of truth.

•Ensure smart contract safety by •Risk of single point of failure.


avoiding Ensure smart contract Risk of single point of failure.
safety by avoiding single
points of failure.re.
Few
types of Software Oracles
Oracles
Hardware Oracles
Inbound Oracles and Outbound
Oracles
Human Oracles
Contract-specific Oracles
Cross-chain Oracles
Compute-enabled Oracles
Consensus-based Oracles
Oracle Design Patterns
Immediate-read: These oracles provide data required for quick decision-
making, based on queries that work on a “just-in-time” basis, with
information derived only when needed. Sample the dial codes or airport
identification and oracles related to academic certificates.
Publish-subscribe: This oracle provides a broadcast data service that
could change information and be polled by smart contract on-chain or
watched by off-chain daemon for constant updates. These designs span
weather data, volatile price feeds, social statistics, and routine traffic data.
Request-response: This pattern includes a large data space for storage
in smart contracts. Users can access a small portion of the information at any
point in time, making this pattern perfect for commencing a viable business
strategy for veteran data providers. It could be implemented as a system of
on-chain smart contracts and for monitoring requests.
Some use cases of Oracle
•Insurance:
Oracles provide essential weather data that helps predict flight delays. This information
is vital for automatically processing insurance claims related to flights and crops,
ensuring payouts are accurate based on current-weather conditions.
•DApps:
Oracles are crucial for decentralized apps (DApps), aiding everyday users engage with
blockchain and keep control of their data. They assist apps for predicting markets and
using social media, making them more flexible and useful than ever before.
NFTs:
Oracles are essential for creating verifiable randomness functions (VRF) that make sure
NFTs are unique by allocating them randomly. They help merge actions happening off
the blockchain, making it faster to create NFTs connected to real things and events.
This makes NFTs more attractive to fans and traders.
•Cross-Chain Services:
Blockchain oracles are key for solving problems when different blockchains need to
work together. They allow data to move smoothly between blockchains without
needing special setups for each one.
Pros and Cons of Oracles
Pros:
1.Data Integration: Bring external data into the
blockchain for complex tasks.
2.Automation: Automate smart contracts
triggered by external events, increasing
efficiency.
Cons:
3.Centralization Risk: Can introduce
centralization issues.
4.Data Accuracy: Erroneous data from oracles
can cause problems; reliable data sources are
crucial.
Conclusion
A big challenge for using blockchain worldwide is
making sure smart contracts can get data from outside
sources dependably.

Without blockchain oracles, smart contracts can only


use data from their own network.

Decentralized oracle networks (DON) make blockchain


more secure and less susceptible to problems. Using
secure and trustworthy oracles is crucial for blockchain
technology to keep growing and succeeding.

You might also like