The Oracle problem: Difference between revisions
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{{:box_round_light_blue|title= The Oracle Problem Discussion Page|1= | |||
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'''Welcome to the talk page for discussing improvements to the Oracle Problem article.''' | |||
Talk pages (also known as discussion pages) are Wiki administration pages where editors/contributors discuss improvements that can be made to an article. | |||
'''NOTE:''' Discussion pages are not a forum for general discussion of the article's subject. | |||
When you post a message on a talk page, you should always sign and date your comment so that other editors can follow the thread of the conversation. To do this, either type four tildes (~) at the end of your comment or just click the signature button on the row of buttons above the edit box. | |||
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However, for the Ethereum blockchain to support the development of DApps that go beyond merely facilitating transactions, they must interact with the external or off-chain world and integrate the incoming data into smart contracts, which is where blockchain oracle technology comes into play, bolstering smart contracts by linking them with real-world data, events and transactions. | |||
<ref>https://cointelegraph.com/news/what-is-chainlink-vrf-and-how-does-it-work</ref> | |||
--[[User:Reggie|Reggie]] ([[User talk:Reggie|talk]]) 02:46, 9 August 2022 (UTC) | |||
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As Chainlink aptly puts it, “for smart contracts to realize upwards of 90% of their potential use cases, they must connect to the outside world”<ref>https://blog.chain.link/smart-contract-use-cases/</ref>--[[User:Reggie|Reggie]] ([[User talk:Reggie|talk]]) 05:11, 29 July 2022 (UTC) | |||
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While blockchains are great for maintaining security, this comes at the cost of being closed to the outside world. | |||
For any project that wants to bring external data into a blockchain, they need to find a way to source that data, without sacrificing the trustless and decentralized nature of the underlying blockchain. | |||
<ref>https://web3pills.substack.com/p/a-deep-dive-on-chainlink?r=853y5&s=w&utm_campaign=post&utm_medium=web</ref>--[[User:Reggie|Reggie]] ([[User talk:Reggie|talk]]) 08:48, 28 July 2022 (UTC) | |||
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“The oracle problem revolves around a very simple limitation—blockchains cannot pull in data from or push data out to any external system as built-in functionality. As such, blockchains are isolated networks, akin to a computer with no Internet connection.”<ref>https://blog.chain.link/what-is-the-blockchain-oracle-problem/</ref>--[[User:Reggie|Reggie]] ([[User talk:Reggie|talk]]) 05:11, 29 July 2022 (UTC) | |||
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In order to create a bridge between the blockchain (on-chain) and the outside world (off-chain), an additional and separate piece of infrastructure known as an “oracle” is required.<ref name="FAQ">https://chain.link/faqs</ref> | |||
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Blockchain nodes are designed to perform standardized and uniform operations to generate consensus on a set of transactions (solving the double-spend problem). However, they are not suited to answer subjective questions about probabilistic real-world data, as blockchain nodes do not always have access to the same information, making generating consensus on even the most basic data requests challenging and source quality enforcement impossible. | Blockchain nodes are designed to perform standardized and uniform operations to generate consensus on a set of transactions (solving the double-spend problem). However, they are not suited to answer subjective questions about probabilistic real-world data, as blockchain nodes do not always have access to the same information, making generating consensus on even the most basic data requests challenging and source quality enforcement impossible. | ||
<ref name="FAQ" /> [[User:Reggie|Reggie]] ([[User talk:Reggie|talk]]) 04:40, 22 June 2022 (UTC) | |||
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Latest revision as of 02:46, 9 August 2022
The Oracle Problem Discussion Page
 |
Welcome to the talk page for discussing improvements to the Oracle Problem article. Talk pages (also known as discussion pages) are Wiki administration pages where editors/contributors discuss improvements that can be made to an article. NOTE: Discussion pages are not a forum for general discussion of the article's subject. When you post a message on a talk page, you should always sign and date your comment so that other editors can follow the thread of the conversation. To do this, either type four tildes (~) at the end of your comment or just click the signature button on the row of buttons above the edit box. |
However, for the Ethereum blockchain to support the development of DApps that go beyond merely facilitating transactions, they must interact with the external or off-chain world and integrate the incoming data into smart contracts, which is where blockchain oracle technology comes into play, bolstering smart contracts by linking them with real-world data, events and transactions. [1] --Reggie (talk) 02:46, 9 August 2022 (UTC)
As Chainlink aptly puts it, “for smart contracts to realize upwards of 90% of their potential use cases, they must connect to the outside world”[2]--Reggie (talk) 05:11, 29 July 2022 (UTC)
While blockchains are great for maintaining security, this comes at the cost of being closed to the outside world.
For any project that wants to bring external data into a blockchain, they need to find a way to source that data, without sacrificing the trustless and decentralized nature of the underlying blockchain.
[3]--Reggie (talk) 08:48, 28 July 2022 (UTC)
“The oracle problem revolves around a very simple limitation—blockchains cannot pull in data from or push data out to any external system as built-in functionality. As such, blockchains are isolated networks, akin to a computer with no Internet connection.”[4]--Reggie (talk) 05:11, 29 July 2022 (UTC)
In order to create a bridge between the blockchain (on-chain) and the outside world (off-chain), an additional and separate piece of infrastructure known as an “oracle” is required.[5]
Blockchain nodes are designed to perform standardized and uniform operations to generate consensus on a set of transactions (solving the double-spend problem). However, they are not suited to answer subjective questions about probabilistic real-world data, as blockchain nodes do not always have access to the same information, making generating consensus on even the most basic data requests challenging and source quality enforcement impossible. [5] Reggie (talk) 04:40, 22 June 2022 (UTC)
- ↑ https://cointelegraph.com/news/what-is-chainlink-vrf-and-how-does-it-work
- ↑ https://blog.chain.link/smart-contract-use-cases/
- ↑ https://web3pills.substack.com/p/a-deep-dive-on-chainlink?r=853y5&s=w&utm_campaign=post&utm_medium=web
- ↑ https://blog.chain.link/what-is-the-blockchain-oracle-problem/
- ↑ 5.0 5.1 https://chain.link/faqs