But in order to function correctly, they require a source of verified information. Where do they get this from and how do they trust it? This is what’s known as ‘The Oracle Problem’.
For example, if your smart contract says: ‘After Event 🥚 occurs, trigger Smart Contract B.’ We need a way of knowing that Event A really has occurred in order to trigger Smart Contract B. But how? This is where an ‘oracle’ comes in.
The function of an oracle is to connect information from the real world to a smart contract, which then allows the contract to be triggered (or not). In other words, oracles allow blockchains to learn the outcome of an event in the real world.
Verity provides a decentralized oracle which uses real people and the wisdom-of-the-crowd principal, together with blockchain technology, to collect and verify real-world data, then connect it directly to any smart contract.
This ensures that only trusted, verified information connects to your smart contract, so you can run your contracts with confidence.