Knowledge (XXG)

Blockchain oracle

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217: 30:. Oracles provide trusted information based on the outside-world sources to the on-blockchain smart contracts. An oracle typically encapsulates the real-world complexity outside of the blockchain. This provides different engineering advantages, chiefly that critical errors and potential points of failure are easier to mitigate off-chain than on-chain. 33:
For example, in a contract to automatically purchase bitcoins at a predetermined price, the fulfillment condition is based on the current exchange rate for the bitcoin; an off-chain oracle can constantly monitor the price to provide the triggering condition to the contract.
103:) increase the reliability of the information provided to smart contracts by querying multiple data sources, thus distributing trust between participants. However, this does not achieve 71:
oracle handles the results of the smart contract (for example, paying a fee) by manipulating a real-world device (say, opening he door). It code can also be stored on-chain;
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oracle executes the code that is actually stored on-chain and provides the result (say, the bitcoin price matching the condition) as an input to the contract;
50:, external to the blockchain that can provide, for example, sports results for betting or traffic camera information for ticketing the offenders; 192: 247: 107:, since oracles are not part of the main blockchain consensus, and thus not part of the security mechanisms of public blockchains. 288: 240: 283: 151:"A systematic literature review of blockchain-based applications: Current status, classification and open issues" 92: 150: 273: 78:
is an aggregator of many oracles to determine the condition when the real-world oracles disagree.
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oracle that is built-in into a physical sensor (for example, the same traffic camera);
278: 267: 104: 181:"Mutual Recognition Mechanism Based on DVCS Oracle in the Blockchain Platform" 21: 185:
Utilizing Blockchain Technologies in Manufacturing and Logistics Management
187:. Advances in Business Information Systems and Analytics. IGI Global. 179:
Kustov, Vladimir Nikolaevich; Selanteva, Ekaterina Sergeevna (2022).
133: 131: 91:), that can lead to issues: the data source can be hacked in a 95:, or altered by its owner, in order to sway smart contracts. 42:
Kustov and Selanteva list the following types of oracles:
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An off-blockchain source of input data for smart contracts
228: 87:If an oracle relies on a single source of truth ( 223:This article relating to cryptocurrencies is a 137: 122: 248: 8: 255: 241: 115: 7: 213: 211: 227:. You can help Knowledge (XXG) by 14: 215: 1: 26:is a third-party service for 138:Kustov & Selanteva 2022 123:Kustov & Selanteva 2022 305: 210: 93:man-in-the-middle attack 289:Cryptocurrency stubs 236: 235: 194:978-1-7998-8699-0 101:consensus oracles 296: 284:Decentralization 257: 250: 243: 219: 218: 212: 204: 202: 201: 167: 166: 164: 162: 147: 141: 135: 126: 120: 76:oracle agreement 304: 303: 299: 298: 297: 295: 294: 293: 264: 263: 262: 261: 216: 208: 199: 197: 195: 178: 175: 170: 160: 158: 149: 148: 144: 136: 129: 121: 117: 113: 85: 40: 28:smart contracts 17: 12: 11: 5: 302: 300: 292: 291: 286: 281: 276: 266: 265: 260: 259: 252: 245: 237: 234: 233: 220: 206: 205: 193: 174: 171: 169: 168: 142: 127: 114: 112: 109: 84: 81: 80: 79: 72: 65: 58: 51: 39: 36: 15: 13: 10: 9: 6: 4: 3: 2: 301: 290: 287: 285: 282: 280: 277: 275: 272: 271: 269: 258: 253: 251: 246: 244: 239: 238: 232: 230: 226: 221: 214: 209: 196: 190: 186: 182: 177: 176: 172: 156: 155:ScienceDirect 152: 146: 143: 140:, p. 87. 139: 134: 132: 128: 125:, p. 86. 124: 119: 116: 110: 108: 106: 105:trustlessness 102: 98: 97:Decentralized 94: 90: 82: 77: 73: 70: 66: 63: 59: 56: 52: 49: 45: 44: 43: 37: 35: 31: 29: 25: 23: 229:expanding it 222: 207: 198:. Retrieved 184: 159:. Retrieved 157:. March 2019 154: 145: 118: 100: 96: 88: 86: 75: 68: 61: 54: 47: 41: 32: 20: 18: 274:Blockchains 89:centralized 268:Categories 200:2024-04-16 111:References 22:blockchain 99:oracles ( 83:Concerns 38:Examples 173:Sources 161:4 April 48:program 191:  24:oracle 62:entry 279:Web3 225:stub 189:ISBN 163:2024 69:exit 55:unit 74:an 67:an 60:an 270:: 183:. 153:. 130:^ 53:a 46:a 19:A 256:e 249:t 242:v 231:. 203:. 165:.

Index

blockchain
smart contracts
man-in-the-middle attack
trustlessness
Kustov & Selanteva 2022


Kustov & Selanteva 2022
"A systematic literature review of blockchain-based applications: Current status, classification and open issues"
"Mutual Recognition Mechanism Based on DVCS Oracle in the Blockchain Platform"
ISBN
978-1-7998-8699-0
stub
expanding it
v
t
e
Categories
Blockchains
Web3
Decentralization
Cryptocurrency stubs

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