Data oracles are services that bring various real-world data to a blockchain network. These are a part of critical blockchain infrastructure, especially in DeFi space. In the enterprise world, they are responsible for delivering all the data about business processes, from transfers and document turnover in logistics to fiat money rates in economics and much more.
Though blockchain itself provides an unprecedented level of security to any business process, here traditional data oracles become an Achilles heel due to their centralization. From now on this is not a threat — with the Oracle Pools model, which enables secure data aggregation in a decentralized environment. Oracle Pools securely aggregate external data and transfer it to on-chain smart contracts in a way that prevents any data manipulation.
Waves Enterprise, together with Ergo — proof-of-work blockchain with highly developed smart contract functionality for the decentralized finance network — brings this new Oracle Pools model to real-world businesses, providing enterprise blockchain networks with high assurance data, such as prices, quotations, events, etc. The current, second version of Oracle Pools model provides a framework for using it within blockchain projects and broadcasting external data securely into multiple blockchain ecosystems. The latter is quite an engineering challenge that is successfully solved by Waves Enterprise and Ergo with the help of cross-blockchain bridges.
The effectively interoperating Oracle Pools framework ensures that any existing system can talk to any enterprise blockchain environment. The framework forms an easy-to-integrate middle layer that can simultaneously access various blockchains so they’re not limited to a single environment or certain types of data. Today, the framework is solid, and additional testing is currently underway to optimize Oracle Pools for economic use cases inside the Waves Enterprise stack.
“Enterprise blockchain solutions, especially the ones based on public networks, rely strongly on external data, and means of getting and delivering this data become a part of critical infrastructure. Any external system must be able to securely communicate to a blockchain environment, which can be ensured with a fault-tolerant interoperability framework. The more data flows are involved in enterprise projects, the bigger is the chance of malefactors’ activity. While the blockchain network is a hard nut here, they can move their focus to corrupt the input data. For example, an intermediary in a supply chain may try to inflate its costs by changing the input data on goods prices. But with Oracle Pools we make this kind of cheating too complicated — by decentralizing, in an advanced and reliable way” Artem Kalikhov, CPO of Waves Enterprise
We hope that this new instrument will inspire global enterprises to explore how they can use blockchain networks to better serve their customers. Oracle Pools is a strategic choice for any enterprise aiming to secure its infrastructure in changeable conditions of the global market.