Table of contents
ORACLES
In Blockchain oracle is a trusted entity that serves as a bridge between blockchain and the outside world. Oracles provide smart contracts with access to data, events and information that resides outside of the blockchain network.
Oracles act as intermediaries that fetch data from external sources such as web APIs, and databases and provide that data to smart contracts allowing them to make decisions. Oracles deliver data to the blockchain in a format that can be processed by smart contracts.
Oracles play a crucial role in expanding the capabilities of blockchain technology by enabling smart contracts to interact with real-world events.
CHAINLINK
Chainlink is a decentralized oracle network that aims to connect smart contracts on the blockchain with real-world data or external APIs.
Here's how Chainlink works:
Smart contracts send requests to chainlink nodes specifying the data they need and APIs or systems to retrieve from.
Chainlink consists of a network of oracles that retrieve data from external sources. These oracles are responsible for fetching data, processing it and returning it to the requesting smart contract.
Chainlink can aggregate data from multiple oracles and provide more accurate data feeds.
Chainlink verifies the integrity and authenticity of data by employing security measures.
Once the requested data is verified and retrieved Chainlink Oracles deliver it back to the requesting smart contract on the blockchain.
HYBRID SMART CONTRACTS
Hybrid smart contracts combine features of both traditional and blockchain-based smart contracts.
Traditional smart contracts are executed entirely on the blockchain. Hybrid smart contracts incorporate off-chain components as well.
Hybrid smart contracts can offer enhanced functionality and efficiency.