Oracles provide data to a blockchain (like Ethereum) from the outside world (or offchain data). Any outside information like the number of votes a political candidate has received, daily temperature, or other outside information is sent with the help of an oracle blockchain platform (inbound oracles) to the Vitalik Buterin led Ethereum blockchain so that an Ethereum smart contract can perform a sequence of tasks automatically. Therefore, it can be said that oracle networks help a smart contract on the blockchain to receive outside data or information so that it can make a decision.
Let’s try to understand with the help of a real-life example how oracle technologies help in our daily lives. Many farmers buy derivatives of agriculture products from commodity exchanges so that they can be used as insurance if drought wipes out their crops. If the weather fails the farmer, he/she can pay up losses with the help of these crop derivatives.
Now, let’s suppose that weather data informs that there will be a 10-day shortage of rainfall amount in a season. This data is transferred directly to the Ethereum smart contract with the help of a weather software oracles. Once this information reaches the smart contract, it knows that it has to make payment to the farmer. In case, more than enough rain takes place in a season, the weather oracle informs the smart contract accordingly, which then doesn’t pay the farmer. These are the real life applications of decentralized oracle blockchain.
A blockchain such as Ethereum can run smart contracts. When programmed successfully, the Ethereum blockchain fully controls smart contracts. No middlemen or entities are required for executing the rules. All the actions take place automatically when the conditions of a smart contract are met. Even if a middleman tries to stop executing the rules, he/she will not be able to do that. The smart contract will carry out everything that it has been programmed to do.
The problem in Oracle products lies in the data source itself from where the weather information is transferred by the weather oracle to the smart contract. Suppose, owner of a data source wants to feed inaccurate information to the smart contract to make it work in his/her favor. It could also happen that a hacker hacks the source of the data feed and alters the information to sway in his/her favor. Then this incorrect information will be carried to the smart contract by the oracle, making the smart contract work automatically in favor of the hacker or unscrupulous people.
Trusting the data source (from where the data is transported by the oracle to the smart contract) is the main problem of the Smart contracts dependant on oracles.
To solve this data source trust deficit problem, researchers are exploring various ways for mitigating this issue. They are now trying to create oracles that are more decentralized in nature and also want to protect against bad actors or corrupt external data sources. One of the most important researches are going on is on the use of Trusted Execution Environments (TEEs) by oracle computers. TEEs are special hardware areas having extra security. This makes them far more difficult to tamper with.
Some other important and notable oracle cryptocurrencies are:
You can also discuss with your financial relationship management company, personal finance management software, crypto performance manager, or even check Wall Street Journal to increase your exposure to Oracle cryptos.
You can buy and sell Oracle crypto coins against various fiat currencies (US Dollar USD, British Pound (united Kingdom fiat currency), Canadian Dollar CAD, South Korean WON, Singapore Dollar, Chinese Yuan, Hong Kong Dollar, etc.) through a wide array of crypto exchanges.
If you want to increase your investment explosively in the coming 10 years, buy oracle coins now. Keep an eye on the market news, financial news, price statistics, block times, and others to time your trading of oracle cryptocurrencies for maximum profit and increasing your net income.
You can also diversify your crypto coin portfolio by including other cryptocurrencies such as Bitcoin Ether ETH, Bitcoin Gold, Bitcoin Cash BCH, Basic Attention Token, Ethereum Classic, Binance Coin, Wrapped Bitcoin (some also call it wrap bitcoin or wBTC), USD Coin, Gemini Dollar, ERC20 tokens (created on Ethereum blockchain), NFTs, and others.
Also, invest in various types of stocks (including dividend yield stocks), mutual funds, index funds, real estate, venture capital, private equity, and others to improve your personal finance. If possible, get help from a portfolio manager or wealth management firm for investment advice and get maximum return.
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