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What is an Oracle Project (Oracle Implementation)?

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An Oracle project is a decentralized solution that allows anyone to access off-

What is an Oracle Project (Oracle Implementation)?

An Oracle project is a decentralized solution that allows anyone to access off-chain data. It solves some problems in the blockchain world by providing a reliable data source, such as price information, smart contracts, and various types of price data (such as cryptocurrencies or NFTs).

Currently, the three largest oracle projects in terms of market value are Chainlink and DuneAnalytics. Among them, Chainlink has the most successful application in smart contracts; it also has prominent applications in the Dapp field, such as Chainlink’s token LINK on decentralized exchanges like Uniswap.

Oracle Implementation

Editor’s note: This article is from an Ethereum enthusiast (ID: ethfans), author: Liesl Eichholz, translation & proofreading: Min Min & Ajian, authorized reprint by Odaily Planet Daily.

Oracles can be used to provide reliability or security for off-chain data. It can also achieve traceability between price information and transactions without any centralized entity. If you want to access market information and get accurate prices, you need to find a decentralized price reference source, which will greatly increase data liquidity in the system.

Currently, there are multiple blockchain-based information sources, protocols, and applications in the market, and these pieces of information can be exchanged with other networks through smart contracts. However, due to the irreversibility and transparency of smart contracts themselves, data cannot be fully disclosed or verified for its authenticity. For example, how can a project determine which tokens comply with securities regulations if the project intends to sell a certain type of cryptographic asset to external exchanges?

The introduction of this idea is to solve this problem:

1. Introduce oracles to distribute computing power evenly across different nodes for all participants.2. Create a dynamic model for data input volume.3. Allow users to choose how they want to add functions.

3. Fundamentally change the rules on the chain to eliminate fraud.4. Establish a unified approach for different nodes to interact and decide who receives which results more efficiently.5. Ensure that every transaction is fair and effective.6. Ensure that every block guarantees a consistent hash value.7. Each block has a specific number of new tokens.8. Use the same algorithm to add new tokens.9. Design a new mechanism as a single oracle solution.10. Customize services according to needs.11. Define standards and have third-party developers develop them.12. Build a universal interface.13. Deploy Chainlink oracle and make it the core of its functionality.14. Integrate Chainlink’s smart contract platform and API toolkit.15. Cluster combinations of oracles, including oracle service providers, exchanges, and other financial institutions, aimed at improving the efficiency of oracle services.16. Connect off-chain oracle infrastructure.17. Link middleware and API of blockchain.18. Data availability analysis, such as querying price changes.19. Linkage between off-chain governance and DeFi protocols.20. Decentralized finance and NFTs.

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