Foundational Oracle Patterns: Connecting Blockchain to the Off-Chain World

Mühlberger, Roman; Bachhofner, Stefan; Ferrer, Eduardo Castelló; Ciccio, Claudio Di; Weber, Ingo; Wöhrer, Maximilian; Zdun, Uwe

doi:10.1007/978-3-030-58779-6_3

Cited by 78 publications

(59 citation statements)

References 22 publications

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“…The last thing to consider to narrow the oracle involvement in DeFi environment is the fact that those applications are meant to communicate with each others (interoperability) so that data flows in both directions. This creates similar issues as those found in blockchain applications for resource management (dual oracle problem) [64].…”

Section: Narrowing the Oracle Problem In Decentralized Financementioning

confidence: 74%

The Blockchain Oracle Problem in Decentralized Finance - A Multivocal Approach

Caldarelli¹,

Ellul²

2021

Preprint

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Decentralized Finance (DeFi) takes the promise of blockchain a step further and aims to transform traditional financial products into trustless and transparent protocols that run without involving intermediaries. Similar to how 2017 was the year of ICOs, 2020 was the year of DeFI with more than $15 billion of total investments. The decentralized platforms utilize oracles to retrieve asset data from the external world, but their choice and management criteria are often unknown to the end-users. If oracles are poorly selected or managed, the funds of a rising number of investors are inevitably in danger. The issue known as “the oracle problem,” which makes real-world applications controversial and debated due to the loss of decentralization, had recently drawn attention to DeFi given the crescent number of related hacks that caused the loss of millions of dollars held in DeFi projects. With a multivocal approach, this paper aims to shed light on the pattern that identifies the oracle problem in DeFi and outline the most promising ways to overcome the related weaknesses. This research supports the view that the oracle problem in decentralized finance bears specific characteristics which require standardization and appropriate economic incentives to be addressed.

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Section: Narrowing the Oracle Problem In Decentralized Financementioning

confidence: 74%

The Blockchain Oracle Problem in Decentralized Finance - A Multivocal Approach

Caldarelli¹,

Ellul²

2021

Preprint

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“…Next, we measured the transaction fee (ether) of each function interface, as shown in Figure 5. Specifically, three transaction submission modes (i.e., Low, Average, and High) were tested 5 . By analyzing the testing results, we can find that the transaction fees of most function interfaces are maintained at a relatively low level (less than 0.01 ether), except for only three special cases, namely Place Bids (auction contract), Generate SLA Contracts (auction contract), and Calculate Witness Fee (witness contract).…”

Section: Cost Analysismentioning

confidence: 99%

“…For example, the provider may not provide the QoS (Quality of Service) they promised, and the customer may refuse to pay for the claimed cloud resources. In the blockchain community, the bridge between on-chain and off-chain events is called "oracle" [5]. One of the solutions to build this bridge is to retrieve data from Oraclize 2 , a third-party company performing as a trusted data source for the blockchain.…”

Section: Introductionmentioning

confidence: 99%

“…In this section, a reverse first-price sealed-bid auction (FPSBA) model is used as an example to illustrate the AWESOME framework workflow. Other auction models can be easily integrated on the smart contract5 The estimated transaction confirmation duration for three modes are 16 minutes, 2 minutes and 19 seconds, and 30 seconds, respectively. Data was collected on April 30, 2021 at https://etherscan.io/gastracker…”

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confidence: 99%

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An Auction and Witness Enhanced Trustworthy SLA Model for Decentralized Cloud Marketplaces

Farshidi

Zhou

Shi

2021

Proceedings of the Conference on Information Technology for Social Good

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Cloud computing has become one of the most important technologies that have changed the traditional application development and operation (DevOps) lifecycle. However, current cloud software DevOps often faces the following key challenges: 1) selecting the best fitting service providers, customizing services and planning capacities for large-scale distributed applications; 2) guaranteeing high-quality and trustworthy service level agreements (SLAs) among multiple service providers; 3) enhancing the interoperability of cloud services across providers; 4) designing incentive model effectively among players. In this study, a framework called AWE-SOME is proposed to build a decentralized cloud marketplace and to address the above challenges. The proposed framework contains four subsystems including a customizable auction model, an incentive witness mechanism, and a social behavior-based simulator as one automated framework. We also provide a proof of concept to demonstrate that the AWESOME framework is feasible. CCS CONCEPTS• Social and professional topics → Online auctions policy; • Security and privacy → Trust frameworks.

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“…Considering first, subjects pertaining to oracle theory, the oracle architecture, comprise many different studies. A group of studies is dedicated to investigating common patterns that emerge from oracles architectures with the aim of classification and improvement [42], [67]- [69]. While the studies of Macquarie University and UNSW are theoretical, the study presented by Vienna University also uses case distinctions based on oracles characteristics and gas usage.…”

Section: Oracle Theorymentioning

confidence: 99%

Who Is Contributing to Academic Research on Blockchain Oracles? A Bibliometric Analysis

Caldarelli¹

2021

Preprint

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With the advent of smart contracts, the benefits of decentralization offered by distributed ledger technologies could be implemented in sectors other than cryptocurrencies, such as Healthcare, Supply Chain, and Finance. Smart contracts, however, need oracles to fetch data from the real world, which, on the other hand, do not offer the same characteristics of decentralization as blockchain. Despite their importance, research on oracles is still in its infancy, and academic contribution on the subject is scarce and sporadic. With a bibliometric analysis, this study aims to shed light on the institutions and authors that are actively contributing to the oracle literature with the aim of promoting progress and cooperation. The study shows that although there is still a lack of collaboration worldwide, there are authors and institutions working in similar directions. On the other hand, it can be observed that most of the areas of research are poorly addressed while others are even uncovered.

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Foundational Oracle Patterns: Connecting Blockchain to the Off-Chain World

Cited by 78 publications

References 22 publications

The Blockchain Oracle Problem in Decentralized Finance - A Multivocal Approach

The Blockchain Oracle Problem in Decentralized Finance - A Multivocal Approach

An Auction and Witness Enhanced Trustworthy SLA Model for Decentralized Cloud Marketplaces

Who Is Contributing to Academic Research on Blockchain Oracles? A Bibliometric Analysis

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