Oracles — the lost piece of blockchains’ puzzle
It is known that blockchain technology can assure the integrity of data that is present in the networks. And it is interesting that very few people in this industry talk about the validity of data. Are people not interested to check if they bought the original NFT or a copy of it? Or if a blockchain project has a legit team behind it? The answer is still unclear. The reality shows us that in 2021 there are only two projects which use the word Oracle in their description.
Oracles are the way to unify off-world data with blockchains. Basically, they are data carriers between two different worlds. This means that they act like inbound providers of data for blockchains and vice-versa. Oracles can be humans, IoT devices, or software applications. It is preferable to use many sources of data for one Oracle to avoid centralization (create a single point of failure) for blockchains.
Our reputation system will build a reputation score for Oracles used in the application. In this case, the process of trusting outside data is automatic. But we must do more than that. One of the main issues of GDPR is that users’ data cannot be processed exclusively by automation. So in the case of Oracles dealing with such data, the presence of human decision is vital. We find a solution by designing an anti-fake system based on users voting. It will be a game with incentives for users, a game that will challenge Oracles’ data.
Once information is valid, it could be integrated into blockchains. Now, smart contracts play their role. Of course, they are not ready yet to replace complex commercial agreements but with the help of Oracles, I believe that someday in the near future will be. Our Oracle system could be a bridge between main blockchains, a bridge that will make it possible to offer valid data to any user about one NFT.