Source
r/CryptoCurrency•
CryptoAstro

Wouldn't oracles create more points of failure?

SUPPORT

Hello all. This is more if a question intended for developers, but all are welcome. I was reading into oracles more and it's very interesting how it allows data from external sources to interact with smart contracts. My concern is the possibility of attacks or bad actors interacting with oracle, allowing manipulation of the data between the smart contracts and the former. Is this a genuine concern or am I missing something?

Posted Jul 24, 2020, 10:20 AM UTC

319
Red5point1Gold | QC: CC 35, DOGE 27 | r/SysAdmin 12•

yeah, definitely introduces more points of failure, however for adoption to happens there needs to be a balance of risk and security.
I believe oracles are a good way to start, the risk will depend on the quality of the software and contracts written to handle the transactions.
If they are sloppy because the creators just want to be first to market then potential of been compromised by bad actors will be higher.
But if the creators take their time and tick/check all the security concerns then they will provide a service that can promote wider adoption.

3
Printer-PamGold | QC: BTC 17, CC 15•

Yes, oracles and smart contract are mostly rubbish, but I am sure they can find niche and offer at least something better than their centralized equivalent

3
olsouthpancakehouseGold | QC: CC 32 | LINK 11•

Very short sighted opinion

1
dd696969420Tin | 2 months old•

Stay poor.

0
Printer-PamGold | QC: BTC 17, CC 15•

All the value creates from DeFi tokens is a house of cards

1
zordiac1337Tin•

you are right, the more oracles you have, the more points of failure you will get. Especially projects like LINK are a huge failure, because they also have decentralized oracles, creating even more points of failure lol

2†
olsouthpancakehouseGold | QC: CC 32 | LINK 11•

Perhaps you should take a listen to what the leading Authority on oracles, the CEO of Chainlink, Sergey Nazarov, has to say about that? https://www.youtube.com/watch?v=UAP6--JTAlU

2
LightningheadGold | QC: CC 24 | LINK 13 | TraderSubs 13•

Oracle's themselves are necessary elements for fetching data to smart contracts (not optional as far as I'm aware if you need external data outside of the Blockchain, not sure how else it would be done). So they're not extra points of failure they're just points of failure

Yeah oracles have already been targets for attack in crypto. Accidents / bugs are a problem as well.

That's what makes decentralized oracle networks vital for smart contracts.

1
BasvanSSilver | QC: CC 439 | IOTA 509 | TraderSubs 164•

How does a decentralized network solve the garbage in problem?

At least with a centralized source of input you have liability and therefore an incentive to be truthful? What does decentralization bring to the table?

1
dd696969420Tin | 2 months old•

Multiple inputs, super genius.

2
BasvanSSilver | QC: CC 439 | IOTA 509 | TraderSubs 164•

Unless it sufficiently randomized, I don’t see the attack vector disappear. I only see multiple low security sources put in the mix.

1
dd696969420Tin | 2 months old•

There's a ton of work done and being done on secure data feeds, I see multiple high security sources put in the mix.

The attack vector doesn't disappear, but if you can minimize and create enough redundancy, then you can have a functioning oracle even if it doesn't meet a picture perfect ideal standard of decentralization.

1
LightningheadGold | QC: CC 24 | LINK 13 | TraderSubs 13•

Don't use smart contracts with garbage data sources.

The successful fetching of data is the greater focus here, the sources of data is more the SC creators choice / problem in terms of the contract going well. Though oracles need to be careful about this too.

The incentive to provide accurate data comes with staking & reputation systems, monetary & rep penalities. It brings extra safety for eliminating the point of failure at both the data source level (enables multiple source fetching) and the node level (enables multiple oracles per contract).

Without decentralised oracles smart contracts lose their entire value proposition (trust-less automation).

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[deleted]•

[deleted]

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humbleteagueSilver | QC: CC 140 | LINK 55 | TraderSubs 41•

It’ll be out in 6 years

0
writewhereileftoffSilver | QC: CC 183 | NANO 352 | r/Android 16•

You're absolutely right on the money there so basically oracles are a trusted third party that have absolute control over the data.

1