Crypto Academy Season 3 | Intermediate course by @allbert –week 7: Blockchain Oracle
Image edited by me in Powerpoint
INTRO
What is a Blockchain Oracle?
Functionalities and Importance of Blockchain Oracles
Between the centralized web and blockchains, there is an incompatibility problem generated by a difference in format.
Blockchains are closed ecosystems, with specific rules which follow a cause-effect chain, or in other words, each event takes place one after the other in sequential order.
However, the real world is not governed under a sequential order but is random and chaotic. For a blockchain, it is impossible to make sense of and use all this data. In fact, one of the problems with blockchains is their lack of flexibility.
The real world also does not keep track of events in the specific sequence they have taken place, which creates tracking and transparency problems. Still, certain data collection points can be generated, however, blockchains still need help to translate, validate and give context to the information.
A blockchain oracle takes information from the external source, reinterprets it, and filters it in such a way that it can be understood by the blockchain platform under its same programming language, (Smart contracts).Image edited by me in Powerpoint
To understand a little better about the functionality of the Blockchain Oracle I invite you to read this Article and pay close attention to the example of Alice and Bob.
In conclusion, a blockchain oracle provides the necessary real information that smart contracts need in order to be executed.
Blockchain Oracle example: ChainLink
Chainlink Logo. Image taken from Chainlink site Source
It is a Network that was created as a provider to the entire DeFi sector; Oracle services of course. In fact, it is a whole network of collaborators and data providers converging on Chainlink.
Throughout its development, it has established partnerships with various external data providers such as Coingeko, Binance, Healthtrends, Huobi, Kraken, as well as other minority partners who receive rewards in exchange for providing information to Chainlink. The platform then relays this data to the smart contracts of the blockchains that request its services.The Chainlink network makes it possible to connect existing APIs to smart contract applications of any blockchain in any area such as decentralized finance (DeFi), insurance, video games, and others.
Through the use of secure oracles, Chainlink extends the functionality of blockchains by connecting smart contracts to real-world data, events, payments, and more in a highly tamper-resistant and reliable manner." Source
History and Properties of ChainLink
What's new for ChainLink?
Just this day a post came out on Chainlink's official Twitter account where they talk about a novelty called Hybrid Smart Contracts, which combine classic blockchain code together with the ability to operate codes outside the blockchain. Here is the detailed post and a link explaining this new technology.
Image and Article taken from Chainlink Twitter account. Source
CONCLUSION
It's always good to know about these platforms that sometimes go unnoticed or don't get the credit they deserve, but they definitely do a gigantic job.
If not for the Blockchain oracle platforms and networks, the cryptocurrency space, smart contracts, DeFi industry would not function the way it does today.
To them, we owe much of the world we know today, and the world that is to come, a world of decentralized finance that will increasingly require the use of Oracles.
It is for this reason that it is important to learn about their projects, as their tokens such as LINK look like excellent long-term investments. In fact, some think that its price can reach 40 or 75 USD in a few months ... only time will tell if this Oracle can illuminate our future.
Homework Task (Season 3/Week-7)
1- History and Description. Does it have any token or cryptocurrency associated? Explain.
2- Functionalities and real-life applications.
3- Pros and Cons.
4- Future developments and new projects
Guidelines
- Make sure you post in the Steemit Crypto Academy community.
- Be Original!!! Refrain from copy any else posts and ideas. Be creative. The content is certainly the same, but the way of presenting it is unique.
- Your article should be at least 300 words.
- Refrain from spam/plagiarism, it won't be tolerated. This task requires screenshot(s) of your own experience. Use images from copyright-free sources and showcase the source, if any.
- This homework task will run from 00:00 August 9th to 23:59 August 14st, Time UTC. (7:59 pm hora Venezuela)
- Users having a reputation of 55 or above, and having a minimum SP of 250(excluding any delegated-in SP) are eligible to partake in this Task. (Must not be powering it down)
- Add tag #allbert-s3week7 #cryptoacademy among the first five tags in this order. You can also use other relevant tags like your country tag. Also, tag me as @allbert in any part of your post.
-Those who include the real examples/screenshots add a watermark on it with your username.
-Please don’t leave your homework link on the comment section unless your post hasn’t been graded within 48 hours.
Feel free to join the comment section if you have any doubts about Homework tasks.
Here is my homework professor.
Hello professor. My homework post link:
https://steemit.com/hive-108451/@adamsmoke/crypto-academy-season-3-or-homework-post-for-allbert-blockchain-oracle
done my friend
This reminds me of my days at school. The first time I heard oracle in class, It was funny. I thought it was an ancestral thing until I got to understand what it meant. Lol. Nice lecture prof. I'm in.
This is good teaching @allbert, when teaching is made simple and clear, it can be remembered in a long time. Thank you for this class.
Good job professor . You have come an amazing lecture for us . Have a good day sir .
Thank you professor. Here is my assignment:
https://steemit.com/hive-108451/@opeyemioguns/crypto-academy-season-3-or-intermediate-course-by-allbert-week-7-blockchain-oracle
Professor please what do you mean by pros and cons for this assignment
Explain good and bad aspects My friend
Oh thank you prof
Nice lecture, Prof. Here is my homework:
https://steemit.com/hive-108451/@greatness96/crypto-academy-season-3-week-7-homework-post-for-allbert-or-or-blockchain-oracle-the-band-protocol
Hola profesor @allbert excelente clase! diculpe tengo una duda a que se refiere con "(No se permitirá el enlace de cadena)"?
Amiga en realidad dice no se permitira Chainlink... que es el oraculo qeu explique en clase... tu traductor tradujo tambien el nombre del oraculo.
En conclusion puedes realizar la investigacion de cualquier blockchain oraculo, A EXEPCION DE CHAINLINK... esa no cuenta.
Ok ya entiendo profesor, muchas gracias!
Thank you professor @allbert for this course. This is my submission.