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Introduction to Oracles

Introduction to Oracles ( Notes )

Any device or entity that conncepts deterministic blockchains with off chain data.

  • A trusted 3rd party that gives reliable information.
  • Allow our smart contracts to utilize third party data ( recall, smart contracts can't call api's )
  • Code that is written by trusted third parties.
  • Off chain oracles send data to the blockchain through a transaction so it can be used by smart contracts and validated.
  • Layer 2 solution that relies on Ethereum.
  • It provides a bridge between blockchain networks and data sources.

  • Referred to as blockchain middleware.

  • Node operators lock up currency and provide data to the chainlink network.

    • Multiple operators provide the same data to ensure data is valid.
    • If nodes submit incorrect data they may lose collateral.
    • Chainlink determines if nodes are reliable and sends data requests to certain trusted nodes.

Any device or entity that connects deterministic blockchains with off chain data.