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Efficient Data Interaction of Blockchain Smart Contract with Oracle Mechanism

Blcokchain smart contract enables the execution of on-chain contracts automatically and definitized. But sometimes it would be triggered by out-chain data. With the help of Oracle Mechanism, which is an independent third party, we can extend the basic smart contract to a systemic and holonomic architecture. The extended system consist of smart contract on-chain and oracle mechanism out-chain. After making data request to oracle mechanism, oracle mechanism collects data from nodes, and make aggregation for the data, then response back to blockchain. In oracle mechanism, an incentive strategy is necessary to keep the nodes’ motivation to provide authentic and accurate data. The extended system could bring efficient data interaction between blockchain and internet, which may drive blockchain be used more widely in various areas.