What is a blockchain oracle? What are the functions of blockchain oracles?

PHP editor Zimo will introduce to you the blockchain oracle today. Blockchain oracles refer to the bridge that connects the blockchain to the real world. By obtaining external data and storing it on the blockchain, smart contracts can access and utilize these data. The role of the blockchain oracle is to solve the problem that smart contracts cannot directly obtain external data, thereby expanding the application scenarios of the blockchain. Currently, there are many different types of blockchain oracles on the market, such as web crawler-based oracles, hardware device-based oracles, etc. Each oracle has its own characteristics and applicable scenarios. Choosing the right oracle is crucial to the successful operation of blockchain applications.

What does blockchain oracle mean?

Blockchain oracle is a third-party service that provides external data for the blockchain. They act as a bridge between on-chain and off-chain systems. Although the closed nature of blockchain ensures security and trustworthiness, many applications, especially smart contracts, require data from the outside world to be truly useful. Smart contracts automatically perform actions based on predefined rules or triggers. However, smart contracts inherently do not understand real-world data, such as weather conditions. Therefore, they need to rely on external sources to provide this data in order to make decisions or perform corresponding functions. This is the value of blockchain oracles. By obtaining and validating external data, the oracle is able to pass this data to the smart contract, allowing it to perform relevant operations on the blockchain. In this way, smart contracts can interact with the real world and have more practicality.

The blockchain oracle seamlessly integrates external real-world data and on-chain smart contracts. The following is a step-by-step explanation of how it works:

1. Data collection:

Oracles actively collect information through multiple channels, including websites, APIs, IoT devices, sensors, and human input . The goal is to obtain real-time data related to the execution of smart contracts in order to influence or influence the operation of the blockchain network.

2. Data verification:

After collecting external data, the oracle will conduct strict verification to ensure the accuracy and reliability of the information. This step plays a crucial role in introducing information into the blockchain. Through verification, the introduction of false or manipulated data can be prevented, thereby ensuring the integrity of the smart contract.

3. Transfer to smart contract:

The verified data is then transferred to the smart contract on the chain. This data is used as an input or trigger for predefined conditions in smart contracts. Smart contracts now have real-world insights and can autonomously execute actions or decisions based on the external data they receive.

4. Autonomous execution:

After receiving verified data, smart contracts can execute predefined conditions or operations without manual intervention. This autonomy is a key feature as it allows smart contracts to respond to dynamic external events in real time.

5. Symbiotic relationship:

There is a symbiotic relationship between the blockchain oracle and smart contracts in the blockchain platform. Oracles provide the necessary real-world information to transform smart contracts from static on-chain entities into dynamic, adaptable components of decentralized applications that deliver real-world value and utility.

What are the blockchain oracles?

There are six types of blockchain oracles: software oracles, hardware oracles, inbound and outbound oracles, centralized and decentralized oracles, contract-specific oracles, and human oracles. The following is a detailed introduction:

1. Software oracles

These are coded entities that systematically access and verify external data. Software oracles leverage their programming capabilities to obtain information from predefined sources such as online APIs, databases, exchanges, and other digital platforms.

2. Hardware Oracle

Hardware oracles involve physical devices equipped with sensors that act as conduits for real-world data. They connect blockchain networks with Internet of Things (IoT) devices and other hardware, thereby integrating tangible elements into decentralized applications.

3. Inbound and outbound oracles

Inbound oracles introduce external information into the blockchain and act as a channel for data from the real world to smart contracts. Outbound oracles transmit blockchain data to external systems, facilitating two-way connectivity between on-chain and off-chain environments.

4. Centralized and decentralized oracles

Centralized oracles rely on a single data source, which may be a potential point of failure. Decentralized oracles (or DON) aggregate data from multiple independent sources to enhance reliability and security through a distributed approach.

5. Contract-specific oracles

These oracles are tailored to the specific needs of a single smart contract. Contract-specific oracles provide data specifically tailored to the conditions and requirements specified in a specific smart contract, increasing accuracy and relevance.

6. Human Oracle

Human oracles involve real people participating in the verification and provision of smart contract information. Strict mechanisms are in place to ensure data accuracy despite human contact and prevent manipulation by adding a layer of trust to a decentralized, trustless ecosystem. Human oracles usually refer to manually entering data.

The above is the detailed content of What is a blockchain oracle? What are the functions of blockchain oracles?. For more information, please follow other related articles on the PHP Chinese website!