Hi there, this is Lucky Ali, and welcome back to my blog. Accessing information from outside into blockchain is something that needs to be understood, and oracles help in this. Activities like running smart contracts, recording transactions, and maintaining a secure ledger, so all these things are not possible to run without connecting to the outside world, and an oracle helps in such things. So let's understand by example. So in the outside world, live gold price is going on, but Bitcoin does not know it because it is not connected with the real world. The same goes for the other coins.
Real-world data connection with the crypto
Real-world data connection with the crypto world is very important, guys, and Oracle works like a bridge between them, which is why Oracle is most important. Oracle consumes information from outside and provides it to the crypto world. Oracle saves blockchain from being a closed and locked system in a different alien world that is not connected with real life.
I think we need one more example to understand it final, clear version. So there is a decentralized app that is based on live cricket score, so the decentralized app is built on blockchain, so it needs data from the outside world to work. Oracle fetches information from multiple sources, analyzes the details of the data, and provides the best information for that decentralized app so that it can work. Oracle is like a heart for blockchain to run. It is the most crucial factor for the blockchain world. I think this is the finest and easiest to understand example for you about how oracles work.
hardware oracles and software oracles
There are two types of oracles: hardware oracles and software oracles. Software oracles are helpful for temperature or weather reading and exchange rates. Now let's come to the hardware oracles so which use sensors to for data from the real world. And both oracles are important. There are human oracles, but when I want more reliability, decentralized oracles come in, and yes, decentralized oracles also connect with the real world, but they cross-check it a nd reduce the risk. That is why decentralization in anything is always useful.
There is a blockchain named Chainlink that oracles, which is why it is a very famous blockchain. Independent node operators work there because it is a decentralized system. Decentralization means a great solution and avoiding danger. Trusted data should be transferred to the blockchain, which is very important. So this is the information regarding oracles. If you still have questions regarding oracles, then use the comments section and write your comment. Also, share this post on social media. Now I am ending this post and will meet you in my next blog.
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 | Hi I am lucky ali from gujarat, india. I am a crypto enthusiast, blogger, and SEO developer. You can find me on hive, twitter and discord (Lucky Ali#6343). Sharing is caring. Thank you, hive family ♥ |
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Greetings,
The bridge analogy and the cricket score app example reminds me of trying to explain APIs to friends.
Thanks
glad you liked it
Wow, that's a new concept for me. I learn something new every day thanks to you.
So oracles are a vital part of the interconnection between the digital world and the real world.
Yes, Oracle connects blockchain with the outside world.
I heard the blockchain named Chainlink. But, I wasn't aware about this oracle things! It seems pretty interesting thing!
Thanks for the tutorial!
!BBH
@luckyali, you're rewarding 3 replies from this discussion thread.