Oracles, assemblys and quorums

This article is a translation of the German IOTA Beginner’s Guide by Schmucklos.

Oracles, assemblys and quorums

Blockchains and also IOTA’s Tangle cannot tap data outside their network. An Oracle is a data channel, usually provided by a third-party provider, which nevertheless enables this access into the real world in a trustworthy manner. Since a single Oracle cannot always be trusted (possible malicious intent), multiple Oracles are combined into an assembly (gathering) where they contribute their results independently of the other Oracles.

An automated quorum procedure (consensus procedure > at least 2/3 of the oracles in the assembly agree with the result) then decides whether the result can be released as correct and accordingly rewards are paid out to the oracles with the correct statement. With IOTA as the underlying technology, this process can be carried out in real time and enables wide-ranging applications, for example, in the financial market, the crypto market, insurance, the betting and gaming industry, etc.

In addition to simple decisions such as “open the window when the temperature in the room reaches 30 degrees”, more complex use cases are also possible, for example, a car can also be an Oracle. it collects sensor measurement data for pollution concentrations, temperature, humidity, traffic jams, accidents, etc.. If several Oracle cars now report the same thing, this data is confirmed as ,,True,, and written to the Tangle. This verified data now has value and opens up completely new business areas, for example, environmental agencies, emergency services, police, transportation companies, news agencies, etc. can access this data and improve their operations or service offerings.

Note: Oracle – each operator may get paid for their honest data (sensors, etc.) with IOTA tokens. It will depend on whether someone is willing to pay for the service offered.

Original source

https://iota-einsteiger-guide.de/oracles-assemblys-und-quorums.html

Last Updated on 16. February 2021