The blockchain-oracle problem is a raging issue in the contemporary blockchain world and for all the right reasons. Put simply, the very problem limits blockchain and smart contracts’ adoption in the mainstream world. But, leading blockchain network TRON seems to have overcome such challenges, courtesy the introduction of not one but two oracle systems on its network.
The blockchain-oracle problem
Very simply, the blockchain-oracle issue refers to blockchain’s inability (given its underlying protocol restrictions) to access off-chain or real-world data. Now, smart contracts on blockchain and DeFi applications operating on smart contracts need verifiable external-world data to function at their best in the mainstream world. Given blockchain’s connectivity issue (with the off-chain world), smart contracts are reduced to mere tokenization tools and they can’t make practical contributions to their real-world use cases. Oracle systems are developed to resolve this blockchain glitch here.
Overview on oracles
Oracles can be defined as middleware solutions that are designed to connect blockchains with the off-chain or the external world. These systems source data from real world data sources and feed them into smart contracts to leverage their functionality in the real-world programming ecosystem. More smart contracts would contribute to real-world use cases, better would be their potential and scope in the mainstream world.
Now, oracles can be centralized and decentralized. Centralized oracles are conducted by one single centralized entity which eliminates possibilities of verifying the data fed into smart contracts. Also, with such oracles, there is always the risk of data being manipulated by the oracle system as everything here is governed by one single entity. Hence, data sourced by centralized oracles cannot assure the guarantee of trust or reliability. On the contrary, decentralized oracles source data from various independent sources which always allows easy verification of data. As a result, data supplied by decentralized oracles bear the stamp of verifiable, authentic and tamper-proof information.
TRON network and its two oracles
TRON has long suffered from blockchain-oracle problems given the absence of any oracle on its network. As a result, although TRON had always claimed to boast the best platform for developing DApps yet smart contracts on TRON were only limited to mere tokenization tools and could not be a part of the programming ecosystem in the mainstream world. Compared to Ethereum which is bustling with 3000+ DApps, TRON could only come up with 750 DApps – despite being more advanced and scalable than the ETH network. But the recent introduction of Bridge Oracle and JustLink oracles on TRON are poised to improve TRON’s potential in the mainstream world big time.
Bridge Oracle is TRON’s first ever dedicated public oracle system. Being a public oracle, it will allow mass participation of small businesses and enable them to implement their businesses on TRON in large numbers. It will go a long way in escalating the member-base of TRON and overall growth of the network. Bridge Oracle is a decentralized oracle and hence can usually assure tamper-proof, authentic and credible data for TRON smart contracts and DeFi applications operating on them. Bridge oracle sources data from various public data sources and also permits to add varied kinds of proof to prove the authenticity of injected data into smart contracts.
It’s to note here, Bridge Oracle is the first to liberate TRON from the blockchain-data disconnection issue and empower smart contracts on the network to contribute more actively in the practical world. At the same time, the oracle has paved the way for TRON to participate more actively in the booming DeFi scene given the assurance of verifiable and authentic real-world data for DeFi applications. No wonder, TRON has been claiming headlines with its bevy of multiple DeFi applications of late. BRG is the native token of Bridge oracle.
JustLink oracle is another latest decentralized oracle that went live on TRON on October 30, 2020. As per statements from TRON, JustLink oracle is a replica of major decentralized oracle network Chainlink.
“Happy to announce #JustLink, #TRON’s 1st oracle project, is officially LIVE!”, tweeted TRON CEO Justin Sun on October 30, 2020.
“TRON’s answer to #chainlink
Bridging real world data and #DeFi
Creating a world of trustworthy and accessible data”
However, Sun’s description of JustLink as “TRON’s first oracle” has drawn criticism from the Bridge oracle community-
“Hi Justin, we started a year ago to plan the first oracle system on the tron network, but it wasn’t for justlink.. but for #bridge_oracle. we had several chat with your team including roy liu, will be nice to chat with you to discuss about this matter because that was our idea…” tweeted Bridge CTO after Sun’s tweet went live.
JustLink oracle will enable developers in the TRON DeFi scene to source off-chain crypto data like stablecoin exchange fees, lending prices, market estimations etc. to create DeFi applications for the mainstream world. This information can be further utilized by different blockchain projects like DEXes or synthetic asset portals. JST is the native token of JustLink oracle.