- On November 25, 2019 blockchain project Ontology announced its partnership with data-driven smart contracts platform Chainlink.
- The main aim of the partnership is to solve the “oracle problem”.
- New provisions are provided to the Ontology ecosystem especially with externally connected smart contracts thereby maintaining functionality and security.
On November 25, 2019, Medium post reported that blockchain project Ontology announced its partnership with data-driven smart contracts platform Chainlink to leverage its distributed ledger technology-based (DLT) market offerings.
The main aim of the partnership is to solve the “oracle problem”. The Medium post describes an oracle as “ a gateway to the external world (off-chain).” They allow off-chain data inputs to be part of the smart contract and the output data to be pushed out on to external systems.
They, therefore, answer questions about external events like “Did the goods arrive on time to the retailer?” This information is used by smart contracts to trigger real-world changes like triggering a payment on an existing payment system upon the arrival of goods.
The problem, essentially, is that the oracle enables a backend connection between two disparate systems while also controlling the connection. To quote the Medium post directly,
“Not only does the oracle control what the smart contract can see (input), but it controls how the smart contract responds to what it sees (output).”
This means that if the oracle is compromised, the smart contracts are also just as compromised. This tampers with the security of the entire system which basically contradicts end-to-end decentralization.
The partnership with Chainlink mainly aims to address this problem also called the “oracle problem.” New provisions are provided to the Ontology ecosystem especially with externally connected smart contracts thereby not jeopardizing their security.
Chainlink’s solution to address the security concerns is by providing a decentralized oracle network and reliable access to data providers, web APIs, enterprise systems, cloud providers and much more. Some of its features include an existing market of independent oracles, flexibility with reference to customizing an oracle connection including number, types, etc.
Their features are mostly based on four factors which are the translation, transportation, quality control, and premium options. Optional features are also provided to increase security or functionality.
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