Oracle evolution: from multi signature algorithm to decentralized Oracles and Ducatur

Today we are going to plunge into Oracles` world a little bit deeper. Let`s go over the history of Oracles, consider their evolution and analyze the main actual players on the market.

Early attempts

To begin with, the first attempts to implement an oracles network started in 2010-2012 and have ended up failing. One of the most notable example of Oracle from that period is Orsi Oracle. The company had an aim of enabling a connection between decentralized applications and the real-world without breaking two key benefits granted by blockchain platforms: security and removal of open-trustlines with third parties. Nevertheless, the experiments did not bring the proper result and companies had to find alternative solution: to ether use centralized approach requiring you to trust the data-carrier or a centralized approach where attestation techniques are used to reduce the level of trust at a minimum, while increasing the level of security.

First successes

Things changed when the company BitGo Inc. presented to the world their technology called Multisignature (multi-signature) in 2013. According to company`s official website, «multisignature» is a digital signature scheme which allows a group of users to sign a single document. Usually, a multisignature algorithm produces a joint signature that is more compact than a collection of distinct signatures from all users and therefore it is easier to implement such algorithm in common blockchain. Still, Multisignature sheme was just a semblance of Oracle and had a lot of serious disadvantages.

Hivemid and Counterparty Oracles

Finally, at the beginning of 2014 year, Hivemind Ltd. released its` Peer-to-Peer Oracle Protocol. It absorbed accurate data into a blockchain so that Bitcoin-users can speculate in Prediction Markets. These markets have the potential to revolutionize the emergence and diffusion of knowledge in society. (Problem with Hivemind protocol?). Later that year, another company, named Counterparty launched its Oracle designed for creating peer-to-peer financial applications on the bitcoin blockchain. Technology allowed nodes of counterparties to communicate with each other through the Bitcoin blockbuster. The implementation of the technology was quite successful, howbeit, the initial idea of ​​the Oracle was still not realized.

The era of Decentralized Oracles

The next notable step on the way of Oracle evolution became the technological scheme that was produced by the company Oraclize Limited which created the first decentralized Oracle. The technology is to accept input from more than one unreliable or partially trusted source, and then perform a data-dependent action only after several of them have provided the same response. Nowadays, Oraclize is the worlds most widely adopted blockchain oracle service, feeding every day on-demand data both to testing (available since 2015, millions of requests processed) and production (available since 2015, +400k requests processed) environments.

Another quite successful example of first decentralized Oracles is Augur. The company created the scheme that would allow people to forecast certain events or processes by betting on correct outcomes, whether it is the election of US presidents, Oscar nomination or Football match. The accuracy of prediction markets rests in the idea of the "The Wisdom of the Crowd". This states that the average prediction made by a group is superior to that made by any of the individuals in that group.

From predictions to complex instruments

The breakthrough in Oracle development happened in 2017 when more and more companies started to use Oracles as special instruments for engineering of various Dapps and creating smart-contracts. The first major project was ChainLink that promised to connect Smart Contract to any external systems & APIs. The company raised over $32.000.000 during ICO. Later this year launched 2 another key projects: Zap Store that allows users to create, publish and subscribe to smart contract and Decentralized Application compatible data feeds. ($5.000.000 ICO) and Oracles Network which specializes in building a public network for smart contracts that combines speed, security, and cost efficiency. ($13.000.000 ICO).

What’s next?

And here comes our project. In Ducatur we strongly believe that current Oracles are still far from perfect. Therefore, we set a task for ourselves to develop it and to provide better Oracles than those that are already on the market. With the help of our highly-educated skillful team and wide experience of our creators and advisors we will advance Oracles and bring the technology to a new level!

Sincerely, George Bell.
Participated in the development of Swissborg ($ 50,000,000), has been an advisor in multiple projects. Co-founder of a top10 ICO Agency - Crynet.
P.S. I will gladly answer any questions you have about the project.

DUCATUR is a framework that allows you to create oracles for
reliable data exchange between the interacting participants on
the blockchain. That would be a system in which you always trust
the received data and which provides a reliable connection
between the blockchain and external information.
The product is a set of smart contracts and an off-line node with
an interface between them.

OUTCHAIN LTD.
71-75 SHELTON STREET
COVENT GARDEN
LONDON
+44 (0) 737 611 6343
sales@outchain.co.uk

George Bell
ads@ducatur.com
Telegram @advisorbell

This release was published on openPR.