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On the 21st of November, Exponential Science hosted its latest session of the DLT Seminar Series: Understanding Decentralised Oracle Networks and their Applications. Featuring Ade Fola-Alade, Solutions Architect at Chainlink Labs, the seminar provided a comprehensive exploration of the Oracle Problem and how decentralised oracle networks (DONs) are addressing certain issues within blockchain applications.
Highlights from the Event
Fola-Alade began with an explanation of the Oracle Problem:
‘Blockchains don’t know what time it is or what happens in the real world. Without oracles, they’re just isolated systems.’
According to Fola-Alade, this limitation makes oracles essential, acting as bridges to connect blockchains with offchain data. However, not all oracles are created equal. The session delved into the vulnerabilities of centralised oracles, illustrated by the 2020 Compound exploit, where reliance on a single price feed resulted in a $49 million loss.
The solution? Decentralised oracle networks. As Fola-Alade explained, these networks leverage multiple independent nodes to ensure data reliability, transparency, and security.
Key Takeaways
- The Importance of Oracles: Blockchain’s potential in real-world applications (DeFi, supply chain management, insurance) hinges on reliable oracles.
- Decentralisation Ensures Security: Unlike centralised systems, DONs minimise risks by using independent node operators.
- Expanding Use Cases: Beyond price feeds, Chainlink’s technology supports applications such as crosschain interoperability, proof of reserves, and decentralised automation.
Fola-Alade concluded by highlighting Chainlink’s ongoing innovations, including cryptographic proof of data integrity and crosschain data transfer protocols like CCIP, paving the way for scalable, trust-minimised blockchain applications.
Want to learn more? Join the final session in the DLT Seminar Series on Thursday, 28th November. The event is free and open to everyone. Get your free ticket here.
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