diff --git a/Oracles/README.md b/Oracles/README.md new file mode 100644 index 0000000..afade67 --- /dev/null +++ b/Oracles/README.md @@ -0,0 +1,23 @@ +## Oracles + +
+ + +* Oracles provide a trustless way of getting extrinsic (off-chain) information. +* They provide the some key functions such as collect data from an off-chain source, transfer the data on-chain with a signed message, and make the data available by putting it in a smart contract’s storage. + + +
+ +### ChainLink + + +A decentralized oracle network consisting of three key smart contracts: + +* a reputation contract: keep track of data providers' performance. +* an order-matching contract: selects bids from oracles using the reputation contract. +* an aggregation contract—and an off-chain registry of data providers. + + +One of the main challenges with such a decentralized approach is the formulation of the aggregation function. +ChainLink proposes calculating a weighted response, allowing a validity score to be reported for each oracle response.