Sergey Nazarov expressed, Oracle networks go far beyond delivering highly validated data. They provide the various decentralized services that are combined with smart contracts to create real-world outcomes. These hybrid smart contracts are already redefining our industry as DeFi.
He stated, you could actually do certain amounts of computation in the oracle networks themselves. This is a more advanced functionality where if you want to keep certain information private or certain parts of the computation private you can put it in an oracle network. But, I think the configurability of an oracle network and the fact that it can do and is already doing lots of computation and going well beyond data delivery is a kind of more advanced point and feature.
Because I think the real value of the oracle networks, just the real way to conceptualize them beyond these initial problems of data delivery is as a collection of decentralized services and those decentralized services go well beyond data. So, data is kind of the initial obvious critical piece of the puzzle that oracle networks provide, but really the conception of oracles networks that we have is one where you build what we call hybrid smart contracts where you essentially build a smart contract that is computer on-chain to the degree that it needs to be computed on-chain to the degree that it needs to be computed on-chain or you want to computer it on-chain in regards to fees, privacy and the information that you want to share.
Then, there is an off-chain computation of the contract which is often related to the data that it needs to consume the part of contract you want to keep private or the part of the computation that perhaps due to scalability reasons can’t be put on a blockchain or can’t be written in a blockchain specific language.
So, I think the way to look at oracles and oracle networks, and ChainLink is as a collection of services that are provided from a decentralized infrastructure that are all of the services that a blockchain cannot provide.
With the remaining market for smart contracts being in trillions it just looks like fundamentally all of the world’s data.
ChainLink is showing all the power of highly secure tamper proof automated digital agreements. It just looks like they are leading the way towards the Fourth Industrial Revolution.
However, someone caught on to the phrases in the speech and stated, “Cannot be done on a blockchain “due to scalability reasons”: I begin to see limitations in blockchain technology.