Oracles are designed to build a secure bridge between the digital and physical worlds in a decentralized, permission-free manner. As IOTA expands, it is important that the right tools are available to support organizations and engineers looking to bring the machine economy to life.
Oracles provide blockchains with external information, typically for use in Smart Contracts, or provide interoperability between different distributed ledgers.
While oracles are primarily intended to be a bridge between the external / offchain world and decentralized networks and services, they suffer from the age-old “garbage in, garbage out” problem. If the data going into an Oracle can be manipulated or censored, it is possible that “wrong” data will lead to “wrong” results. Some Oracle solutions attempt to address this problem by ensuring that the Oracle uses inputs from a sufficiently large number of independent sources. Other Oracles on the market have proposed a set of standards to bring off-chain data to the chain, but they too suffer from inherent bottlenecks that can hinder real-world deployment.
Last Updated on 17. February 2021