ABSTARCT :
Blockchain interoperability has become an essential requirement for the advancement of blockchain technology in numerous fields. Enterprise organizations are increasingly utilizing permissioned blockchains to manage and store their organizations’ data and transactions in a private immutable ledger.
Interoperability enables permissioned blockchain platforms to communicate and exchange information which is paramount for fully exploiting permissioned blockchains as facilitators for B2B applications. Additionally, the cross-network invocation of smart contracts under agreed conditions enhances business operations.
Blockchain oracles can enable permissioned blockchain interoperability and cross-network transactions in a seamless and private manner. However, they have not been studied in the literature as interoperability techniques between permission blockchains.
This study proposes a blockchain oracle interoperability technique designed specifically for permissioned blockchain platforms.
We presented the architecture of the blockchain oracle interoperability technique and a prototypical implementation to demonstrate the practicality of the proposed technique. In addition, we obtained cross-network transaction latency measurements and analyzed the results.
EXISTING SYSTEM :
They can also invoke other Smart contracts or transfer digital assets from one user to another. Smart contracts can only use its local data as they follow the closed-world assumption of blockchain computation.
In case they require data from external systems, they need to use Oracles to import these data. Oracles are a trusted third party that may have many forms.
Oracles can be normal users that submit external data to the Smart Contract sor they can be specialised software that invoke the Smart Contracts to provide these data. Chainlink1 is an example of an Oracle.
DISADVANTAGE :
Dependency on Oracle Providers: In a permissioned blockchain, oracles may come from centralized sources or trusted entities. This creates a centralization risk, as the integrity of the smart contract is dependent on a single point of failure. If the oracle is compromised or provides incorrect data, it could undermine the trust in the entire blockchain system.
Data Integrity Issues: Since oracles pull data from external sources, any discrepancy in how data is collected, processed, or transmitted to the blockchain could lead to inaccuracies in the contract execution. This could lead to disputes or financial losses.
Vendor Lock-in: Since oracles in permissioned blockchains are often tied to specific vendors or solutions, there could be a risk of becoming reliant on a specific oracle provider, limiting flexibility and the ability to switch to better or more secure alternatives in the future.
Loss of Confidentiality in Permissioned Blockchains: Even though permissioned blockchains are designed for enterprise-level use with higher privacy control, interacting with oracles might expose more information than necessary, potentially violating confidentiality agreements or privacy requirements.
PROPOSED SYSTEM :
The system introduces a modular architecture composed of several key components, including the Oracle Data Source Module for retrieving off-chain data from trusted external sources, and the Data Validation and Aggregation Module for ensuring the integrity and consistency of the data before it enters the blockchain ecosystem.
The Oracle Gateway Module facilitates communication between the permissioned blockchain and external oracles, converting and standardizing data to meet blockchain requirements.
A critical component of the system is the Smart Contract Interface Module, which allows external data to trigger contract execution and influence decision-making within the blockchain network.
To ensure data privacy and security, the Data Privacy and Security Module employs encryption, digital signatures, and privacy-preserving technologies like zero-knowledge proofs (ZKPs) to protect sensitive information during transmission.
ADVANTAGE :
Wide Range of Data Sources: With interoperability between multiple oracles, permissioned blockchains can source data from diverse providers, enhancing the variety and reliability of the data available to the blockchain network.
Increased Decision-Making Capability: Oracles facilitate smarter, more adaptive contract execution, where decisions can be made based on dynamic conditions. This increases the scope and functionality of permissioned blockchains, making them more responsive to real-world changes.
Oracle Aggregation for Data Consensus: When multiple oracles are used to source the same data, the results can be cross-checked, and a consensus can be reached. This reduces the risk of manipulation or errors from any single oracle and builds more confidence in the data’s accuracy.
Redundancy and Reliability: By integrating multiple oracles that source data from different platforms, businesses can achieve redundancy, improving the availability and reliability of external data feeds to the blockchain.
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