[ad_1]
It all started in 2019 when the Chainlink protocol was officially launched to facilitate the transfer of tamper-proof data from off-chain sources to on-chain smart contracts. They further introduced hybrid smart contracts running deterministically on a blockchain and connected to real-world data through oracle networks.
Copy trading bots from the top traders. Try it for FREE.
Last year, the project got increased attention when Sergey Nazarov (co-founder of Chainlink) decided to explain the potential of their mission in an interview. He stated about the further possible implementations of Chainlink’s decentralized oracle networks, the ever-growing use-cases of hybrid smart contracts, and the Truth Machine inclusion that will help in achieving guaranteed truth backed by cryptographic truth.
Truth Machine is mainly oracle networks that are combined with blockchain and are controlled by private keys. The combination of the mentioned three pillars makes the Truth Machine that can possibly change the world. The oracle networks focused on generating deterministic cryptographically guaranteed truth. Then the blockchain, for storing and giving people access. Finally, the private keys allow people to have direct and complete control over the agreement in real time.
The aim behind the creation of Truth Machine is to come up with an impartial, decentralized, hyper-reliable system that ultimately provides definitive, cryptographically proven truth across industries including finance, tech, legal, and shipping. Truth Machine seems to have promising capabilities ensuring guaranteed truth in relationships with peers but is underestimated by the majority at the time.
Chainlink clarifies the difference between the nature of probabilistic guarantees and deterministic guarantees. They focused on implementing the Truth Machine that relies on encryption and private keys having a deterministic level of guarantee.
Cryptographic guarantees are already present in our daily life. Several messaging apps use cryptographic guarantees which guarantee end-to-end encryption to keep your communication private, giving you a sense of comfort and psychological safety to a great extent.
A good example of this is WhatsApp. The official website of the social media messaging giant states: ‘’WhatsApp’s end-to-end encryption is used when you chat with another person using WhatsApp Messenger. End-to-end encryption ensures only you and the person you’re communicating with can read or listen to what is sent, and nobody in between, not even WhatsApp.’’
The role of the Truth Machine is to address the problems related to important daily life agreements including key transactions, how conventional society works, and various other problems by making use of those cryptographic guarantees.
The implementation of cryptographic guarantees in the web 3.0 world can resolve several problems and change the conventional ways of ensuring the truth. DeFi, NFTs, and tokenized ownership are early examples of cryptographic truth.
Truth Machine proposed by Chainlink utilizes the hybrid smart contracts that are actually digital agreements that are stored on a blockchain and are fully decentralized. Oracle networks are used to monitor and control the agreement under certain predefined conditions.
The only problem that is stopping Truth Machine implementation to achieve mass adoption across a wide variety of markets and use cases is the blockchain oracle problem. It is due to the limitation of the blockchain system as it is not capable of pulling in or pushing out data to any external system automatically. The reason is that blockchain systems are isolated networks with no internet connection.
An important question that arises in the case of cryptographic truth or Truth Machine is how one can ensure data quality or deterministically verify the truth. It is possible in several ways one can guarantee data quality like finding the direct sources of data that are actual data creators. For example, you can get the price of an iPhone from Apple officially or you can gather and compare the data from 100s of different sources. Another way to ensure data quality is by decentralizing and outsourcing the data verification to communities. This is what we’re trying to come up with at Truflation.
Read More: Truflation Delivers Custom U.S. Inflation Index Data On-Chain Via Chainlink
Truflation are working on a solution to ensure data quality and automate quality control by making the data sets diversified and redundant while expanding the data sources. Their aim is to create a data DAO that will govern the index. With the help of the TRU Token Model, Truflation is developing a multi-step, semi-automated, community-based quality control protocol. They do this by finding multiple independent data sources for the verification and resilience of the index.
Here’s a short snippet from our Truflation Whitepaper: ‘’The Truflation oracle is a free daily data feed of the current US inflation level measured with our customer Truflation Index. Any project and product can use it to promote and develop the DeFi space. However, deploying contracts on Chainlink to consult the Oracle costs local fees in LINK.’’
They are trying to automate and hopefully decentralize the quality control, diversify data points, make complex algorithms to combine redundant datasets, automate quality, and put automated quality on nodes if possible. Truflation’s end goal is to provide unbiased, data-driven, real-market inflation rate available on-chain for all DeFi products out there.
Join Coinmonks Telegram Channel and Youtube Channel learn about crypto trading and investing
[ad_2]
Source link