Author: Peter Todd 2014-04-25 20:14:03
Published on: 2014-04-25T20:14:03+00:00
In a discussion about the usefulness of oracles, Alex Mizrahi suggests that an oracle could associate a hash with each possible outcome, and then reveal a preimage which would unlock the transaction. This approach has several advantages over the multi-sig script method: the oracle doesn't need to be involved in each specific transaction; resolution is the same for everyone who bets on a specific event outcome; there is no need for two-way communication; and there is no need for a special protocol. Peter Todd notes that implementing oracles by having the oracle reveal ECC secret keys works better in every case except for larger transactions. The oracle can prove they really do have the key by signing a challenge message. The transaction can include keys derived from the oracle keys, blinding what purposes the oracle is being used for from the oracle itself.
Updated on: 2023-06-08T21:33:07.371973+00:00