This article was first published on iExec - Medium
Why your Decentralized Application Needs a Decentralized Oracle (From Web 2.0 to Web 3.0)
Today, Web 3.0 brings a new paradigm to the tech world. Thanks to blockchain and smart contracts, people can now have total trust in the execution of a piece of code. That’s a big deal. Some go as far as to say that “code is law”. The dream of a world without a central authority where interactions can go without middlemen becomes a reality, and decentralized applications (dapps) embody this new shift.
As a developer discovering the wonderland of Ethereum, your first thought when implementing a payable function in solidity with two lines of code may be “wow, that’s slick!”. And you’d be right. After trying to grasp the whole new world of possibilities that are opening up to you, the next step would be to code a smart contract that solves a real-world problem. Let’s suppose you decide to create a stablecoin. The smart contract would take the price of ETH/USD from CoinMarketCap, before then issuing your new stablecoin based on the given exchange rate. Simple enough? Wait, not so fast. You can’t query the Web 2.0 using solidity smart contract programming language. “Huh?”. No that’s right, there is no wget function in solidity. In fact, blockchains are totally siloed from the internet!
So on the one hand, you discover this new world, the Web 3.0, that offers trusted code executions. And on the other hand, you have the traditional Web 2.0, a goldmine with terabytes of valuable data.
What if you could connect these two worlds?...
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iExec - Medium