2025-08-30
Blockchain relies on decentralization. Once it involves obtaining external data such as real-time weather and stock prices, closed blockchain systems face difficulties. Smart contracts cannot directly read off-chain information, making it difficult for many applications that rely on external data to achieve. The emergence of blockchain oracles effectively fills this gap. So, what is a blockchain oracle? How does it work? And in which areas does it play a role?
A blockchain oracle is a type of Middleware that can securely and reliably transfer off-chain data to the blockchain and deliver blockchain instructions to the off-chain Middleware. Simply put, it is like a "messenger" for blockchain to communicate with the real world. In a blockchain system, the execution of smart contracts relies on accurate external data, such as insurance claims contracts triggered by weather data and financial transaction contracts executed based on stock prices. However, the blockchain itself cannot actively obtain external data, and oracles need to act as a "bridge" to collect and verify external data, and convert it into a format that the blockchain can recognize and process, thus ensuring the correct execution of smart contracts.
The workflow of a blockchain oracle mainly includes three steps: data collection, verification, and transmission. Firstly, the oracle obtains data from various data sources such as news websites, weather platforms, and financial data providers through API interfaces and web crawlers. Secondly, to ensure the authenticity and reliability of the data, the oracle adopts various verification mechanisms, such as cross-validation of multiple oracle nodes and the introduction of trusted third-party verification, to avoid malicious data interference. Finally, the verified data is converted into a format recognizable by the blockchain and transmitted to the blockchain, triggering smart contracts to perform corresponding operations. In the digital asset trading service of HashKey Exchange , oracle technology can be used to obtain real-time market price data, providing accurate external information support for smart contract-driven trading strategies.
The application scenarios of blockchain oracles are very extensive. In the field of decentralized finance (DeFi), it provides price data for lending, derivative trading, etc., to ensure fair transactions. HashKey Exchange When developing DeFi products, oracles can be used to obtain accurate asset price information; in supply chain management, oracles can upload off-chain data such as logistics information and quality inspection results of goods to the blockchain, achieving full process traceability; in the field of IoT, oracles can transmit device operation data collected by sensors to the blockchain, triggering smart contracts for automated management. With the development of technology, blockchain oracles will continue to expand the application boundaries of blockchain and promote more innovative applications.
What is HashKey Exchange?
HashKey Exchange is one of the first regulated cryptocurrency exchanges in Hong Kong to obtain a license from the Securities and Futures Commission (SFC). It supports fiat currency deposits and trading in Hong Kong dollars (HKD) and US dollars (USD), offering users spot trading services for mainstream digital assets including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The platform also provides OTC (over-the-counter) services to meet the needs of large-value asset transactions and fiat currency conversion, ensuring more flexible and private trading. To cater to the asset allocation needs of different investors, HashKey has launched the HashKey Earn channel, offering users fixed-term and demand financial products to achieve stable appreciation of crypto assets. The platform holds ISO 27001 and 27701 security certifications, employs a 98% cold wallet storage mechanism, and incorporates security measures such as two-factor authentication to provide users with a stable and reliable trading environment.
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