Blockchain technology is revolutionizing the way we interact, interact and exchange information, and many experts predict that it will be the most revolutionary technology in the next decade. Following small structural innovations from the nineteenth and twentieth centuries, decentralization has brought industries such as finance, media and technology closer to openness, freedom from intermediaries and greater efficiency.
Traditional companies rely on a closed, centralized structure. On the contrary, decentralized financial projects are built on the premise that governance should be decentralized and democratic. Transforming society into decentralized platforms can make many services more secure, accessible and transparent than ever before. The growing interest in space indicates a collective desire for greater control over the essential elements of our lives, especially our economy.
While decentralization helps solve problems such as transparency and efficiency, the lack of a reliable central authority means that decentralized applications or DApps must rely on third parties to provide data to perform transactions or application functions such as obtaining credit. Access to reliable and dependable information such as price flows, real events and identification, among many others, supports the reliability, dependability and efficiency of a decentralized application.
Security to protect this data is provided by an Oracle solution that can reliably and efficiently connect factual and off-chain information with decentralized applications and smart contracts in a verifiable and tamper-proof manner. With over one million loyal DApps users worldwide, there is a huge demand for reliable data outside the blockchain, as it supports the security of DeFi applications and the billions currently reserved in space.
After hacking, attacks and computer manipulation, blockchain technology faces the challenge of building trust and building secure systems in the absence of established institutions or government regulations. This is where new technology such as Oracle Data is needed to create a secure connection between older companies with reliable prices and a decentralized ecosystem.
Connects old and new
Computer oracles act as a bridge between decentralized blockchain applications, combining real data and linking them to smart contracts. These decentralized applications then use self-performing smart contracts when certain criteria are met, such as elimination of security, which requires an oracle price. In the absence of a central authority, a computer oracle is required to connect blockchain-based applications with the information required to implement these smart contracts.
Oracle’s smart contracts and technology use are widespread and span insurance, real estate, healthcare and most importantly the DeFi room, where a security breach can threaten millions.
DeFi has many hacks. Oracle data is the input to the logic of the smart contract and thus determines its behavior: the output. If the oracle data is entered incorrectly, it leads to unintentional behavior of the smart contract and can lead to loss of funds or other unwanted results, which is obvious even in the most powerful DeFi projects. These structural problems necessitate broad dissemination of data.
There is an urgent and urgent need to link Web 2.0 to Web 3.0 in order to create a more flexible, efficient and censorship-resistant Internet. Traditional Web 2.0-based companies are not yet structurally ready to switch to DeFi due to the learning curve, necessary knowledge and organizational flexibility. These traditional organizations will require transparent customization processes with a high level of flexibility and customization that will act as a bridge to Web 3.0.
This is where Oracle’s new technology comes in, providing support and systems for organizations to make the transition to Web 3.0 without the company’s involvement.
While DeFi has undoubtedly flourished over the past year, this space still requires wider acceptance by a majority without programming experience, because it is this availability that will create a truly robust DeFi system.
Traditional companies will also benefit greatly from this transition, as their data is a valuable resource for decentralized applications and an innovative new revenue stream ready to take over the market as the industry continues to grow.