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Oracle Machine: A bridge connecting on-chain smart contracts with the real world
Introduction to Blockchain Oracle Machine Technology
The Oracle Machine is a key infrastructure in the Blockchain ecosystem, providing external data for smart contracts. As a bridge connecting on-chain smart contracts and the off-chain real world, the Oracle Machine plays an indispensable role in Blockchain applications.
Smart contracts on blockchain networks like Ethereum cannot directly access off-chain data. For example, if an Ethereum smart contract requires the trading volume of crude oil for a certain day, it needs to use an Oracle Machine to achieve this. The specific process is as follows: the contract writes the data request into the event log, an off-chain process listens for that event and retrieves the required data, and then submits the data to the smart contract through a transaction.
The largest Oracle Machine project by market share is Chainlink. It provides real-world data to the Blockchain in a secure and reliable manner through decentralization. Chainlink has built an economically incentivized ecosystem around its native token LINK.
The workflow of the Chainlink Oracle Machine is as follows:
In order to adapt to the business scenarios of Oracle Machine, Chainlink proposed the ERC677 standard, which adds the transferAndCall method on the basis of ERC20, combining payment and service requests into one.
For developers, in addition to custom data sources, they can also directly use the price Oracle Machine provided by Chainlink. Each trading pair has a separate Price Feed, which allows for easy access to the latest price data through a simple interface. This greatly simplifies the process of obtaining asset prices.
Overall, Oracle Machine technology provides the key capability for Blockchain smart contracts to access external data, making it an important infrastructure for building complex DApps. With the development of technology, the application scenarios of Oracle Machines will become more widespread.