The Oracle Problem | Why Smart Contracts are Useless Without Oracles
Decentralised Oracles (Tellor, ChainLink, Band Protocol, Witnet etc.) attempt to solve the oracle problem which smart contracts face.
What Is The Oracle Problem?
As Mike explains so well in this clip from our interview, smart contracts are simply lines of code that carry out a pre-determined action based on an event occurring. However, what happens if the smart contract doesn't know whether the event has occurred or not? What if it doesn't have this first piece of information to carry out its task? The smart contract cannot correctly function.
This is the oracle problem - for smart contracts to work, they first need the correct information inputted. This is role of oracles.
Mike explains this concept and how his team at Tellor are challenging the likes of Chainlink in our full interview. Watch now - https://youtu.be/frHL3J2NAOo
●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●
Support this Site
Article comments