We all know that blockchains are immutable and once data is written to the chain, it cannot be changed. This is one of the key advantages of blockchains – data integrity. But what happens when data needs to be changed? For example, what if a smart contract needs to be updated to reflect the latest price of a cryptocurrency?
This is where blockchain oracles come in. Oracles are third-party services that provide external data to smart contracts. They are the link between the real world and the blockchain world.
Now, you might be thinking, why do we need oracles? Can’t we just write the data directly to the blockchain?
The problem with writing data directly to the blockchain is that it is slow and expensive. Every time data is written to the blockchain, it needs to be verified by all the nodes in the network. This process can take minutes or even hours.
With blockchain oracles, data can be written to the blockchain almost instantly. This is because oracles are not subject to the same verification process as regular transactions. They are also much cheaper to use.
This is why fast finality is important in blockchain oracles. With fast finality, data can be written to the blockchain quickly and cheaply. This allows smart contracts to be updated in near real-time, which is essential for many applications.
Other related questions:
Q: What is blockchain finality?
A: Blockchain finality is the property of a blockchain that ensures that once a transaction has been recorded and verified on the blockchain, it cannot be changed or reversed. This is what allows blockchain-based systems to be trustless, as all parties can be certain that a transaction cannot be modified after the fact.
Q: What is finality Ethereum?
A: The finality of a transaction is the guarantee that it cannot be reverted or changed in any way.
Ethereum’s finality is provided by its consensus algorithm, which ensures that all valid transactions will be included in the blockchain.
Q: What is proof of work in ethereum?
A: Proof of work is a system that allows for a decentralized consensus on the state of a blockchain. It is the most common method used for blockchains, and is used by Ethereum.
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