Having clarified the vital importance of the Oracles for the use of real-world data by smart-contracts, let's see why ChainLink has evolved almost out of control in the last year.
As we know, ChainLink is part of that branch of software called Middleware: through dedicated APIs, it connects the blockchain with the real world.
Not only
This contact with the real world is implemented through a network of nodes on which a particular software called ChainCore is run.
Since each node is equipped with this system, it becomes an OracleNode, and when the smart-contract requests data, more nodes are dedicated to finding what is required; at that point, through cross-checks, the Oracle Nodes verify the validity of the data itself: we have arrived at the decentralization of the data verification !!!
Unlike the Band protocol, which takes the truthfulness of the data for granted and then proceeds to verify it… a real contradiction.
Operating, in fact, within the blockchain, each Oracle must be paid for this work and takes place through the proprietary token Link.
Clearly this ecosystem leaves nothing to "fate", in fact even data providers can enter this network: simply by introducing dedicated APIs recognized by ChainCore.
Through these procedures, the data found has a different reliability than those that are not filtered, at source, by the relevant API.
It should be noted that all Oracle Nodes take the data off-chain, but subsequently all the verifications are performed on-chain on the proprietary blockchain and subsequently delivered to the smart-contract.
Let's talk about costs
As I said earlier, since the data is validated by blockchain, the validation costs are quite high, we are talking about $ 450 for a single data request; in this regard, ChainLink is implementing the TSS (Threshold Signature Scheme)
TSS is a particular form of signature that must not be performed on the blockchain, as we can consider it decentralized; in fact all the nodes are aware of a part of the private key, so the signature will be performed by multiple nodes and not always the same for multiple signatures.
I think I will shortly make an article about TSS as it is of extreme importance: the signature is also decentralized!
For those wishing to try their hand at becoming Oracle Node, at this link there are all the step by step instructions; and the beauty that you don't even need an exaggerated PC, even a Raspberry could be enough!
