On-chain Oracles the boost efficiency of dApps and projects built on the blockchain while enhancing functionality and utility
Early on, æternity’s developers spotted a critical gap in the blockchain world: the lack of seamless integration between real-world data and blockchain technology. Determined to bridge this divide, they set out to revolutionize smart contract functionality. The core of this mission is to empower decentralized applications with reliable, real-time data, unlocking unprecedented potential for innovation and efficiency across various industries. The blockchain-native Oracles that æternity offers have the potential to make dApp building much easier, cheaper, and impactful.
From finances and real estate to betting and all the industries in between, the necessity for real-world input is paramount. The next step in the evolution of blockchain technology is a seamless integration of the on-chain and off-chain worlds.
Oracles make decentralized applications not only more practical but also highly responsive and relevant.
Built-In Oracles on æternity
In the original cypherpunk manner, æternity embraces the true ethos of distributed networks by embedding oracles directly into its blockchain, eliminating the need for third-party providers and middlemen. Most other blockchains depend on third-party oracle providers, such as Chainlink, or other solutions that base their whole economy on profiting from other networks using their oracles. By offering a more secure and reliable way to bring external data onto the blockchain, æternity greatly expands the potential and scope of these applications, as well as significantly lowering the cost of operations by enabling builders in the ecosystem to not rely on third-party solutions for Oracles.
Built-in oracles on æternity make it possible for smart contracts on the æternity Blockchain to access external data such as sensor information, stock prices, or event outcomes. This is achieved through a registered Oracle transaction that defines the data format and the associated query fees. Developers can then submit their queries, and Oracle operators respond with the required information in the established format.
This is crucial for smart contracts, as it allows them to interact with and respond to real-world events, greatly enhancing their practical applications and scope. Compared to traditional approaches, this method has several benefits as it promotes self-reliance, safety, and near-instant access to reliable information.
Step 1. Data Request: The specific external data issue is requested through a smart contract on the æternity blockchain.
Step 2. Oracle Response: The Oracle operators monitor and control these requests, delivering the required information. The data is subsequently put on the æternity blockchain.
Step 3. Verification and Integration: Before integrating the provided data into the ongoing smart contract processes, it can be verified for accuracy and integrity.
This mechanism ensures that external data, whether it’s stock price, match results, weather information, or any other type of real-world data, is accurately and securely integrated into the smart contract.
A significant application for this is data as a service. For example, supply chain data can be accessed by the blockchain through a trusted Oracle, which enables contracts to execute actions based on real-world events, such as releasing payments upon the arrival of goods.
In this environment, there could be a whole market of Oracle providers within the æternity ecosystem offering their services to users and builders to choose from.
Building Blockchain Applications with æternity’s Oracles
The secret sauce, available on æternity, that makes developing oracles so simple is Sophia, the programming language which streamlines the process and minimizes common smart contract errors. Sophia enables developers to integrate real-world data into blockchain applications effortlessly, empowering innovative solutions with efficiency and precision.
While privacy must be considered since Oracle responses become public information on the blockchain, which may pose a risk for personal data, timing is also equally essential. With users being able to specify the query Time To Live (TTL) for timely responses, the system also ensures that if an Oracle fails to respond within the specified TTL, the query fee will be refunded.
Finally, Oracles have a specific lifespan that can be extended, ensuring their availability for a certain period. Watch this overview of how Oracles function on æternity, made during the Human DeFi hackathon, and have a look through the æternity Youtube channel for more in-depth videos explaining Oracles and other features.
Oracles on æternity are an essential tool for developers in that they help build intelligent and adaptable dApps. By leveraging Oracles, developers can create applications that respond to real events in real time, process external data, and offer enhanced user experiences. Integrating real-world data into blockchain apps is a major condition for mainstream adoption.
Experience the quality of smart design, build on æternity Blockchain!
To learn more about building on æternity or dive into the world of æternity-enabled DeFi, head over to the æternity forum, or the æpp development community.
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