Interest of the BlockChain and Smart Contract

La Blockchain is a self-regulating system, a central control or decision-making body is not necessary to ensure its proper functioning. The integrity of the data stored in the Blockchain is ensured by cryptographic methods in an immutable register. They cannot be falsified. It is impossible to integrate false information into the Blockchain thanks to collective verification by proof of work. Bitcoin, for example, allows people who do not necessarily trust each other to exchange money safely without any central authority. However, Bitcoin does not exploit the full potential of the Blockchain. Some Blockchains (such as Ethereum) are developed in order to be able to execute code stored in the Blockchain in real time. These code files called smart contracts are very advanced versions of Bitcoin transactions. They allow cryptomy to be transferred under external conditions.

La Blockchain does not verify these conditions. Integrating software that allows blocks to have contact with web services would be too dangerous for the integrity of the Blockchain. It is based on a third party service, called Oracle. The Oracle retrieves the information verifying the condition and injects it into the Blockchain. But the interest of the Blockchain is precisely to avoid having to call on a third party! Indeed, the progress of the contract depends on the observation of a trusted third party. The role of the oracle is to seek and insert information to verify the terms of a contract. This information is accompanied by proof that the information has not been changed from as retrieval to publication in the Blockchain. This proof is public and verifiable by cryptographic methods.

Oracles are still subject to research because they present a potential flaw for the Blockchain. Softwareiek oracles can be found drawing from certified databases, consensus oracles collecting their information by calculating the reputation of the source, even hardware oracles for retrieving information from the physical world using sensors.


Leave a Reply

Your email address will not be published. Required fields are marked *

About us

Bonds & Shares is a participatory non-Profit information platform for, through and by experts in finance and business.



Latest posts