Smart contracts, oracles — what is that?
Several blockchain based projects have been trying to implement decentralized Oracles that are triggered by public voting as a solution to possible unfairness regarding bet resolutions. However this solution is working as intended only in theory. How does Marginless face and solve this problem?
First of all we need to find out what is Oracles and Smart contracts
Smart contracts — is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract.
Ethereum allows developers to program their own smart contracts, or ‘autonomous agents’, as the Ethereum white paper calls them. The language is ‘Turing-complete’, meaning it supports a broader set of computational instructions.
Smart contracts can:
- Function as ‘multi-signature’ accounts, so that funds are spent only when a required percentage of people agree
- Manage agreements between users, say, if one buys insurance from the other
- Provide utility to other contracts (similar to how a software library works)
- Store information about an application, such as domain registration information or membership records.
Oracles — is an ‘agent’ that finds and verifies real-world occurrences and submits this information to a blockchain to be used by smart contracts. In our case, using an oracles means receiving data from outside of a blockchain.
Oracles are radically important. Just like the ancient stories could never have occurred without proper external information, smart contracts cannot function without some data source. Without access to these sources of information, use cases for smart contracts drop to just a tiny fraction of their potential.
However, with these systems, smart contracts have real world applications in virtually every field available. Once data hits the Blockchain, the information can be used to execute the contracts and provide use cases, which can disrupt industries across the board.
Marginless decided to use Hybrid Oracle solution that will rather rely on official market sources instead of public voting. Each created market will have Hybrid Oracle connected to it that will query independent feeds for the outcomes of events.
If all queries will provide same result — Hybrid Oracle will resolve the bet accordingly. If one or more queries will return with different results — manual check-up will be required to avoid wrong pay-outs. As an extra security measure — bettors will be notified about the resolutions of bets in an instant manner via web or phone application. However the funds will be released only 15 minutes after this notification. This will allow users to report wrong outcomes, if there were any to happen.
Overall, smart contracts are an innovation that will save countless hours of oversight, as well as immeasurable amounts of money due to their automated nature. Further, the future of the decentralized world will be made up of smart contracts and decentralized applications (Dapps).
Do not forget to join and follow our social media if you want to receive all the updates first!
TOP STORIES AT MARGINLESS:
