Even though Blockchain Oracles are a relatively new technology, they have quickly become a popular tool for blockchain-based applications.
Oracles are an important bridge between the off-chain and on-chain worlds, allowing data to be securely fed into smart contracts. This allows blockchain applications to interact with the real world, making them more useful and flexible.
In this article, we will explore the use cases for Blockchain Oracles, taking a look at how they are used in decentralized finance (DeFi), supply chain management and other industries.
We will provide an overview of the underlying technology, followed by some examples of how oracles are being used in each field.
Decentralized Finance (DeFi) & Blockchain Oracles
Decentralized finance (DeFi) is a rapidly-developing area of blockchain technology, where users can access financial services without the need for a trusted third party. DeFi applications are becoming increasingly popular, as they enable users to access various financial products, such as loans and insurance, in an efficient and secure manner.
Blockchain Oracles are playing an important role in DeFi, allowing data to be retrieved from external sources and sent to smart contracts.
For example, the popular decentralized exchange Uniswap uses the Chainlink oracle network to retrieve real-time price data from external data sources, enabling users to make informed decisions when trading.
Oracles are also being used to facilitate margin trading on decentralized exchanges (DEXs).
The liquidity oracle Golden Owl can access information from multiple sources to provide up-to-date risk assessments for DEX traders. It can access data such as exchange rates and liquidity across different exchanges, allowing traders to make more informed decisions.
Supply Chain Management & Blockchain Oracles
Supply chain management has traditionally relied on manual processes to ensure efficient operations, but more organizations are now turning to blockchain-based solutions. These solutions allow organizations to manage the flow of goods throughout their supply chain in a secure and transparent manner.
Blockchain Oracles can be used to provide real-time updates on the status of goods throughout the supply chain.
For example, the oracle network Chainlink can be used to retrieve data from tracking devices that are attached to the goods. This data can then be used to update the records stored on the blockchain, allowing organizations to monitor the status of the goods in near real-time.
Oracles can also be used to facilitate payments between companies in the supply chain. The Payments as a Service (PaaS) platform Iconiq Lab uses the Chainlink oracle network to securely route payments between companies in the supply chain, ensuring that payments are made on time and in full.
Other Industries
Oracles are becoming increasingly popular in other industries, such as healthcare, gaming, and real estate. In the healthcare industry, for example, the data oracle platform Negellien has been used to securely record patient data on a blockchain-based platform. This data can then be accessed by doctors and other healthcare professionals, allowing them to make more informed decisions.
In the gaming industry, oracles have been used to enable competitive games offering real-world rewards. The smart contracts governing these games can be programmed to access external data using oracle networks, which can be used to trigger rewards based on the outcomes of events in the real world. For example, the popular Ethereum-based prediction market Augur uses Oraclize to provide real-time data on the outcomes of sports games and other events.
Oracles are also being used in the real estate industry, streamlining the process of buying and selling property. For example, the California-based property management platform Propy uses the Verity oracle network to securely access data from public registries, allowing transactions to be securely recorded on the blockchain.
Conclusion
Blockchain Oracles are becoming increasingly popular, offering a secure and reliable way to bridge the gap between the on-chain and off-chain worlds. They are being used across a wide range of industries, from decentralized finance (DeFi) to supply chain management and real estate. The use cases for Blockchain Oracles are growing, and as the technology evolves, they will become even more powerful.