What is Oracle?
In olden days all offices used paper to maintain the details and store them in a file this is known as database. Similarly, Oracle is a computer-based database which is created to store large amount of data in a computer system. In cryptography, blockchains are dependent on decentralized oracles to get external data. Without oracles help blockchains and smart-contracts cannot get external data due to deterministic nature of blockchain data. For blockchains being used effectively as real-world tool “Oracle’s Problem” need to be solved.
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What is the Oracle’s Problem?
Decentralized information of blockchains can be corrupted by oracles and external data cannot be attained by blockchains and smart-contracts on their own. The nature of the smart-contracts are transparent and they are written on blockchains if something happens. For smart-contracts to get external data “Oracles” help needed.
If a blockchain stores all the info related to total number of cryptocurrencies exist in the world and to get that data an oracle needs to connect with external service. Let say a web service sends data to an oracle on a smart-contract which then causes certain outcomes to happen and getting information from one source/computer goes against what smart-contracts and blockchain technology meant to solve.
If the information from that one computer is corrupted then thousands of computers connected to the network will make drastic decision based on this false data. Many blockchains projects are trying to solve this centralization issue through oracles.
Some of the projects that are solving the oracles problems are ChainLink, Band Protocol and Tellor. Chainlink rewards the users that provide external data (accurate) to the smart-contracts for execution. Band Protocol in the newest project and they use delegate proof of stake (dPoS) and offer decentralize data oracle and ensure data integrity. Tellor is the low cap project with only 1.24 million total supply and offer decentralize oracle for DeFi.
1-Best Blockchain Oracles Projects – ChainLink
Chainlink oracles connect complex smart-contracts to real world data, payments and events. Chainlinks provide reliable external data that is provably secure end to end. Participants on the ChainLink network are incentivized (through rewards) to provide smart contracts with access to external data feeds.
2-Best Blockchain Oracles Projects – Band Protocol
Web 3.0 application getting much more attention and therefore Band Protocol comes up with decentralize data oracle for web 3.0 applications. Band Protocol provides an infrastructure for blockchain applications to connect with any open API without relying on a centralized party. Band feeds data On-Chain and trying to bring blockchain closer to mass adoption.
3-Best Blockchain Oracles Projects – Tellor
Tellor is US based crypto project (Oracle) which provides high value date for smart-contracts. Tellor provides decentralized and secure (Using staked proof of work protocol to validate) data. Ethereum smart-contracts have no direct access to off-chain information and Tellor project gets rid of this problem using a network of miners to fetch data for smart contract. Tellor tributes incentives to the miners to provide data and keep oracle secure. Main investors are Maker, Binance Labs Consensys Grants of Tellor Project.
4-Best Blockchain Oracles Projects – 0Chain (ZCN)
ZCN is decentralized off-chain cloud storage platform and oracle blockchain solution provider. 0chain provides faster, cheaper and more secure storage than other cloud platforms. 0chain will be explode any time soon do not get behind.
5-Best Blockchain Oracles Projects – Witnet Protocol (WIT)
WIT is decentralized oracle protocol which connects smart contracts to real world. Visit Witnet protocol official website for more detail.
Final Thoughts These three are the top oracle projects in the crypto market right now. Oracle projects will get much more exposure in the real world therefore DYOR and invest accordingly in these projects