"Oracle is an important part of the ecosystem of the intellectual contract of Ethereum and is critical to the implementation of many applications. We hope that more and more interesting digital applications that use information from such services will appear. "
– Vitalik Buterin, founder of Ethereum
Many believe that smart contracts are a new wave of innovation for business and law that can serve as material for the construction of the next chapter of the Internet.
Would quickly get a first idea of the benefits of oracles as they work, and how to supply information, I'll show you some live examples.
Smart contracts can be useful in completely different industries: from financial services and insurance to logistics and intelligent sensors IoT. Smart platform platforms like Ethereum and Bitcoin have limited access to information from the outside world, and the oracles are designed to fill this gap by providing smart contracts with data from the outside world in the form they need.
Let's take an unmanned vehicle. At this stage of development, using a smart contract, it would be possible, for example, to determine who and at what time actually controlled the car. Was it the driver who controlled it or did the machine work in automatic mode? The oracle could receive information from the sensors of the car and deliver it to the locker, keeping it unchanged.
The types of data and sources with which oracles work can vary greatly, from data from a thermostat in your home or stock market prices to your heartbeat. The Oracle takes the data and formats it so that third-party block applications can use them.
But one of the living examples is the 21Inc company and their latest project sensor21. Anyone who has $ 5 can buy and put into his computer a tiny Raspberry Pi sensor to measure air pressure, altitude, temperature. The oracle application passes this data to the created 21Inc. Marketplace and sells 20 satoshi per request. Or, for example, the portal BNC (BraveNewCoin), which completely free of charge launched 14 public oracles, offering information with daily quotations of prices for the main digital assets. Oracles supplying financial data can be useful for many applications, from crypto protection programs and new crypto-purses, to trading bots and other decentralized applications.
Tokenized assets created by oracles, such as securities, have great prospects and can replace current financial instruments, since they
Have more extensive means of automation, protection from unauthorized access and enable much easier access to transactions with this asset.
Special services are already being developed to simplify processes. One of them is SmartContract. CEO of SmartContract Sergey Nazarov says that oracles created on their platform are very well configured, keep confidentiality and scale. SmartContract offers the ability to add legal documents to contracts that interact with these oracles. Consent and digital signature in a legal document may be a condition for executing a smart contract.
So far, three large forms of such interactions have appeared on the horizon: oracles, which preserve the results of events, forecast markets and the sale of private data.
As the economy grows larger, the oracle ecosystem will evolve rapidly, providing links between the digital and physical worlds. And today, those who can accurately provide information for the digital economy, have the opportunity to participate in the section of future profits