Blockchain Oracle: It's Advantages In The Cryptoecosystem

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Introduction

Good morning friends, Today I wish to talk about a very nice topic with you.

This topic I want to discuss with you is a very important one and Initially, I do not have full understanding on it's concepts, not until I made my personal research about it.

I am sure you have heard about blockchain oracles in the cryptospace, as I tried to shed light on it in the previous week.

Today, we will be learning about the advantages of blockchain oracle in the cryptospace.

Advantages Of Blockchain Oracle

• Smart Contract Functionality :

Oracles allows smart contracts to react to real world conditions and events thereby increasing their functionality.

For instance, a smart contract with a decentralized insurance can make use of an oracle for the verification of a specific event's occurrence; events such as a fights delay etc., and with the use of the Oracle also trigger a payout automatically to the holder of the policy.

This is an effective way to enhance the functionality of a smart contract.

• Decentralization And Trustlessness :

With external data, oracle connects contracts of the blockchain, it is essential for the Blockchain contracts to keep up with a certain level of Decentralization to prevent or get rid of any point where failure may tend to get in.

Decentralized oracle serves as a channel for the distribution of data feeds from various sources. This feature reduces the risk of it being manipulated and also the risk of inaccuracies.

This enhances an absolute and high measure of trustlessness in the execution of smart contracts.

• Data Connectivity :

Smart contracts are empowered by blockchain oracle to interact with APIs systems that are external and real world data.

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This interaction or connectivity is essential for the execution of contracts that are highly complex and diversified which needs information that are external beyond the blockchain.

This kind of information are informations such as weather conditions, prices of the market or sports scores.

• Price Feed For Decentralized Finance (Defi) :

In the application of Decentralized finance, there's need for the vitality of timely and accurate price feeds for functions such as decentralized exchanges, platforms for lending and market makers that are automated.

Blockchain oracle makes provision of these platforms. They provide them with real time price data from divers sources making sure for impartial and dependable financial transactions.

• Decentralized Identity Verification :

In quest to promote the level of privacy and security oracle is being employed for Decentralized identity verification.

Oracle gives smart contracts the ability to verify the credentials of users without having to depend on a centralized authority.

It achieves this by connecting and interacting with external identity systems of verification.

• Supply Chain Transparency :

With the use of Blockchain oracle external data can be brought in systems of supply chain management.

For instance, in a shipping container, temperature sensors could feed to a Blockchain oracle.

This is to make sure that the condition of goods that are being transported are maintained as well as are being recorded on the Blockchain.

• Customisable And Scalable Solutions :

For various applications, blockchain oracles can be designed to provide for special needs to provide customizable solutions.

Very importantly, they tend to add to blockchain network's scalability by the offloading of certain computations and the processing of data retrieval to oracles that are external.

This is a way in the prevention of blockchain bloat.

• Cross-chain Communication :

Communication between various blockchains is being facilitated by blockchain oracle, this particular feature is specifically valuable and important in the continuous evolvement and specialization of the Blockchain ecosystem.

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Blockchain oracle provides interoperability which enables data and assets to move about seamlessly across various blockchain networks.

Conclusion

To summarize it all, between the external world and Decentralized application the Blockchain oracle acts as a critical link which enables smart contract to connect with the real world data in a manner that is Decentralized, secure and dependable.

They are highly versatile and this feature makes them an important component in the adoption of blockchain technology and it's expansion across divers entities.