Blockchain Oracles Are Key To Driving DLT Mass Adoption
I recently wrote that I believe that Distributed Ledger Technology (DLT) will create more economic value than AI as real world assets (RWA) are tokenized and transacted with across blockchains.
Prior to the tokenization of RWA at scale, we need to have secure interoperability across blockchains. Blockchain oracles are the secure middleware layer that authenticates and connects third party data sources to blockchains. Think of a smart contract for a house that requires information about the buyer and seller to process the home title to comply with state regulations. Those data inputs need to be tokenized and authenticated before they may be securely on-boarded to the blockchain where the smart contract resides. The blockchain oracle provides this function.
Chainlink is one of the better known blockchain oracles. There are more than 1,000 operational blockchains. It is critical that RWA have the ability to securely move across blockchains to encourage more and more RWA to port to DeFi environments. Thus, blockchain oracles are a key element of DLT architectures that will help drive mass adoption.