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By Adeyemi Boboye
Developers in the Web3 ecosystem are familiar with the concept of smart contracts as it is the backbone of what they are building in the ecosystem.
Going by the name “Smart Contracts”, are they really smart?
They are smart, however, they have limitations.
Before delving into these limitations, it is important to define what is Smart contracts.
Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into code. They are computer programs that automatically execute and enforce the terms of a contract when certain predefined conditions are met.
Smart contracts run on blockchain platforms, most notably Ethereum, and they bring automation, transparency, and security to various industries and applications.
Interoperability Limitation of Smart Contracts
It is important to note that Blockchain is not all about “Crypto”, there are a lot of use cases that can be used with the Blockchain technology, ranging from Finance, weather, Gaming, AI, and IoT.
Interoperability is a major limitation of smart contracts in the blockchain ecosystem. It is hard for various chains to interact with each other. For example, getting price feeds from a centralized exchange for DeFi or exchange of data from Tezos to Cosmos.
However, Oracles are solving these limitations by bridging the barrier to data access.
Here are projects solving smart contracts interoperability issues in the Web3 space.
Acurast
Acurast is a permissionless, decentralized blockchain orchestrating and scheduling the participants' intentions and executes these in a confidential computing context. This provides developers with a distributed, highly scalable arbitrary computation engine ready to be used for the most security-sensitive tasks.
Provable formerly Oraclize
Provable is the leading oracle service for smart contracts and blockchain applications, serving thousands of requests every day on platforms like Ethereum, Rootstock, R3 Corda, Hyperledger Fabric, and EOS.
The solution developed by Provable is instead to demonstrate that the data fetched from the original data-source is genuine and untampered. This is accomplished by accompanying the returned data together with a document called authenticity proof.
Nest Protocol
The NEST oracle is completely open and free of charge, allowing price offers and verifiers to verify prices based on a non-cooperative game mechanism, and no centralized review or threshold of quotation system is required, and anyone can freely join or leave at any place, and at any time.
DIA
DIA is a cross-chain data and oracle platform, specializing in the sourcing and delivery of customizable data feeds both on-chain and off-chain.
DIA’s architecture focuses on transparency, customizability and scalability. By collecting billions of raw trading data ticks directly from 80+ sources including Centralized Exchanges (CEXs), Decentralized Exchanges (DEXs), it enables full transparency customization control throughout the entire value stack, to fuel any web3 or web2 use case
Tellor
Tellor is an immutable decentralized Oracle protocol that incentivizes an open, permissionless network of data reporting and data validation, ensuring that data can be provided by anyone and checked by everyone.
Built for any data type, our network of reporters supports your basic spot prices, more sophisticated pricing specs (TWAP/VWAP), Snapshot Vote Results, or any custom data needs you have. If your data can be verified, Tellor can bring it on-chain.
Conclusion
It is exciting to see this project ensuring that Blockchain is interoperable and by this more use cases will spring up in the ecosystem. The entrance of Projects like Acurast ensures that Web3 is connected to the Web2 world and other emerging technologies like IoT and AI.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.