Decentralization has become all the rage in recent years. It started with Bitcoin’s elegant distributed ledger. This spawned a myriad of clones but also some highly innovative rivals. Enter Ethereum a few years later, which allowed decentralized applications to be built on top of the base consensus mechanism.
Companies could theoretically build decentralized exchanges, lending protocols, prediction markets and much more. These would allow users to access many of the services of the traditional financial world but in an entirely permissionless way. However, my time as a financial data provider has shown me there are a few roadblocks in the way.
The Oracle Problem
Exuberant smart contract developers quickly ran up against an obstacle, also known as the oracle problem. They discovered that achieving decentralization in complex smart contracts was far more challenging than in a single-use case like bitcoin.
Continue reading:
https://www.forbes.com/sites/forbesbusinesscouncil/2021/08/19/traditional-financial-data-and-the-blockchain-economy/?sh=413ebc347fe2
Companies could theoretically build decentralized exchanges, lending protocols, prediction markets and much more. These would allow users to access many of the services of the traditional financial world but in an entirely permissionless way. However, my time as a financial data provider has shown me there are a few roadblocks in the way.
The Oracle Problem
Exuberant smart contract developers quickly ran up against an obstacle, also known as the oracle problem. They discovered that achieving decentralization in complex smart contracts was far more challenging than in a single-use case like bitcoin.
Continue reading:
https://www.forbes.com/sites/forbesbusinesscouncil/2021/08/19/traditional-financial-data-and-the-blockchain-economy/?sh=413ebc347fe2
