Theory and practice of decentralized blockchain oracles

The present study explores the field of decentralized oracles, paying specific attention to the Chainlink network. Additionally, the study includes the creation of a decentralized finance (DeFi) trader smart contract that integrates Chainlink's oracles and price feeds. Moreover, it is discussed...

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Detalles Bibliográficos
Autor: Fomintsov Trukhaev, Vladimir
Tipo de recurso: tesis de maestría
Fecha de publicación:2024
País:España
Institución:Universitat Politècnica de Catalunya (UPC)
Repositorio:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglés
OAI Identifier:oai:upcommons.upc.edu:2117/423352
Acceso en línea:https://hdl.handle.net/2117/423352
Access Level:acceso abierto
Palabra clave:Blockchains (Databases)
Computer security
Computer networks -- Security measures
Blockchain
Decentralized Finance
Decentralized Oracles
Decentralized Oracle Networks
Chainlink
Smart Contracts
Staking Mechanisms
Decentralized Applications
Cadena de blocs (Bases de dades)
Seguretat informàtica
Ordinadors, Xarxes d' -- Mesures de seguretat
Àrees temàtiques de la UPC::Informàtica::Sistemes d'informació::Bases de dades
Descripción
Sumario:The present study explores the field of decentralized oracles, paying specific attention to the Chainlink network. Additionally, the study includes the creation of a decentralized finance (DeFi) trader smart contract that integrates Chainlink's oracles and price feeds. Moreover, it is discussed how decentralized oracles play a crucial role in facilitating connectivity between blockchain systems and external data sources, thereby bolstering operational capabilities and broadening the scope of functionalities available to blockchain applications. The principal aim of this research is to illustrate the incorporation and application of decentralized oracles in practical settings, particularly by means of the construction of a DeFi trader smart contract. The purpose of this contract is to utilize Chainlink's dependable and secure price feeds for the implementation of essential trading operations, including the initiation and processing of purchase and sale transactions, as well as the management of limit orders. The utilization of reliable and promptly available market data from Chainlink's decentralized oracle network enables the smart contract to facilitate efficient and transparent trading activities. The primary elements of this study entail a comprehensive examination of Chainlink's complex architectural framework, consisting of decentralized oracle networks (DONs) that collate and authenticate data from various origins to safeguard the accuracy and integrity of the data. The research also examines pertinent security issues such as Sybil attacks, data manipulation, and node collusion, and delves into different strategies to mitigate these risks, including cryptographic proofs, multi-source data aggregation, and robust consensus mechanisms. In summary, this investigation highlights the importance of decentralized oracles in enhancing the functionalities of blockchain technology and DeFi applications. The results emphasize the need for extensive implementation and incorporation of decentralized oracles in order to guarantee the sustained progress and prosperity of blockchain ecosystems. This study offers a thorough and technical analysis of the architecture, security, and practical uses of Chainlink decentralized oracles, providing valuable perspectives for the advancement of financial innovations based on blockchain technology.