Blockchain is highly regarded for its security and decentralized nature. However, the design of its security system creates a restriction that prevents it from interacting with external data sources, making it difficult to incorporate information from outside the blockchain.
This limitation restricts the application of blockchain technology in developing solutions and applications that rely on real-time and precise off-chain data.
While blockchains can autonomously verify on-chain data, such as circulating token supply, verifying off-chain data is generally challenging.
Here’s an illustration of how lack of access to external data affects blockchains; let’s say we have a blockchain-based insurance system for farmers in South America.
For the system to function effectively, we would likely need data about the rainfall in the region. But this data can only come from sources outside the blockchain, which presents the challenge of incorporating it into the blockchain system.
This reliance on external data may compromise the effectiveness of the insurance system, especially if the data provided is flawed.
Such limitations confine the use of blockchain to just a few sectors and hinder developers’ ability to create a wide range of decentralized applications (dApps) accessible to all, as intended.
Blockchain oracles like Goracle have been developed to solve this problem.
Oracles provide off-chain (real-world) data to the on-chain (blockchain) world by pulling data from feeds that provide relevant information.
Blockchain oracles can access and relay data in real-time from an off-chain source, such as the result of a football match, from a sports betting website onto a blockchain.
While this approach seems straightforward, it gives rise to a new problem known as the Oracle problem.
The Oracle problem stems from the fact that data obtained from outside sources may not always be accurate. dApps relying on blockchain oracles must trust that they are getting genuine and precise information.
The risk here is that oracles could introduce a single point of failure if the data they provide is flawed, effectively undermining the very essence of what makes blockchains secure and reliable.
More About Goracle and How It Solves the Oracle Problem
Goracle blockchain oracle solution built on the Algorand blockchain. Its main objective is to provide reliable off-chain data for the development of decentralized applications (dApps) that are meant for everyday use.
Goracle brings the best of Web2 to the blockchain and Web3 applications by offering an innovative solution that ensures data validity and accuracy in a manner reminiscent of traditional web applications.
With Goracle, developers have the power to create dApps that can access timely and precise off-chain data without compromising on security. This significantly streamlines the process of building useful dApps, especially as blockchain technology continues to gain traction.
To address the Oracle problem, Goracle takes a decentralized approach to off-chain data access by integrating various feed providers who are incentivized to act with honesty and integrity. Furthermore, Goracle employs its own consensus mechanism to secure how data is accessed from its protocol, effectively preventing itself from becoming a single point of failure.
Goracle acknowledges the importance of decentralized access to off-chain data while ensuring the inclusion of accurate information on-chain. It assumes the role of a trustworthy source of truth, all the while upholding the fundamental principles of decentralization.
Asides from its unique approach to solving the oracle problem, here are four ways Goracle distinguishes itself from other blockchain oracles.
#1: Goracle Uses Less Computational Power but Provides Accurate and Reliable Data
Goracle uses a specialized kind of Proof-of-Stake consensus algorithm— the Pure Proof-of-Stake (PPoS). The consensus mechanism allows it to effectively carry out its double task of achieving consensus and verifying data accuracy on the network.
This PPoS consensus algorithm not only ensures data accuracy but also minimizes the computational power required to validate data authenticity and maintain network security. This optimization allows Goracle to ensure accuracy and reliability while minimizing the required computational resources.
Consequently, integrating the blockchain oracle becomes straightforward for all types of network participants. This sets Goracle apart from other oracles that require additional computational power and offer less decentralization.
#2: Goracle Supports Higher Transaction Throughput Without Increased Costs
Goracle is built on Algorand, known for its impressive transaction speed. It can handle up to 6,000 transactions per second, making it a preferred choice for building advanced decentralized applications (dApps).
One of the standout features of Algorand is its cost-effectiveness. Compared to other networks like Ethereum, the cost of processing transactions on Algorand is significantly lower. This makes it more accessible and economical for users.
Goracle takes full advantage of Algorand’s capabilities. The blockchain oracle can efficiently handle multiple data requests from various users without any disruptions to its operations.
#3: Goracle Is Immune to the Blockchain Trilemma
Goracle effectively sidesteps the blockchain trilemma by being native to the Algorand blockchain. It does this by being specifically designed to work with Algorand, and fits seamlessly with the network’s security measures.
This integration also eliminates potential vulnerabilities that may arise when external oracles connect to blockchains.
In contrast, many other blockchain oracles lack this native integration and are prone to security vulnerabilities and inconsistencies. Goracle’s native integration with Algorand sets it apart as a superior and more secure solution.
#4: Goracle Provides Flexibility for Data Requests
Goracle provides users with two options to access data from the protocol. They can make aggregated requests or direct requests.
Aggregated requests require combining data from multiple feed providers and aggregating the results into a single result.
By default, Goracle is designed to provide aggregated data to consumers. This approach ensures data integrity and maintains the network’s decentralization. However, consumers have the freedom to request data specifically from a particular feed provider (individuals, organizations, or data aggregators that supply the relevant data and participate in the network).
This flexibility empowers consumers to choose which feed provider they want to obtain data from at any given time, compared to other blockchain oracle solutions that only offer one-size-fits-all access to off-chain data.
The Exciting Future of Blockchain in Everyday Life Is Here
Blockchain technology keeps evolving, and Goracle has just begun a new phase of that evolution.
With Goracle, developers can explore new possibilities for decentralized applications (dApps) by using reliable off-chain data in real time. This opens up opportunities to create solutions that directly impact our everyday lives in unprecedented ways.
What makes Goracle special is its innovative approach to solving the oracle problem, which serves as a model for other projects facing similar challenges. Despite the complexities involved, Goracle remains dedicated to staying true to the fundamental principles of blockchain technology.
The potential impact of the Goracle project is truly limitless and hard to imagine. We stand on the brink of a revolutionary future for blockchain, with endless possibilities unfolding right before us.
Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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