Binary option pricing example
Home Welcome to the Documentation of Oraclize! Background Oraclize is the leading oracle binary option pricing example for smart contracts and blockchain applications, serving thousands of requests every day on Ethereum, Bitcoin and Rootstock. In the blockchain space, an oracle is a party which provides data. But to rely on a new trusted intermediary, the oracle in this case, it would be betraying the security and reduced-trust model of blockchain applications: which is what makes them interesting and useful in first place.
One solution is to accept data inputs from more than one untrusted or partially trusted party and then execute the data-dependent action only after a number of them have provided the same answer or an answer within some constrains. This type of system can be considered a decentralized oracle system. It is inherently inefficient: all the parties participating will require a fee and, for every request, it will take time before reaching a sufficient number of answers. The solution developed by Oraclize 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. The authenticity proofs can build upon different technologies such as auditable virtual machines and Trusted Execution Environments. A more detailed overview of Oraclize authenticity proofs is provided in the Authenticity Proofs section of this documentation.
Data providers don’t have to modify their services in order to be compatible with blockchain protocols. Smart contracts can directly access data from Web sites or APIs. Oraclize engine can be easily integrated with both private and public instances of different blockchain protocols. While building the service, the Oraclize team has realized that the concept of authenticity proofs has much broader applicability that initially envisioned. General Concepts Oraclize is integrated with a number of blockchain protocols and its service is useful and accessible also for non-blockchain applications.
In the following section, general concepts which apply to all integrations will be explained. Oraclize Engine The Oraclize Engine powers the service for both blockchain-based and non-blockchain-based application. Internally replicates an “If This Then That” logical model. This means that it will execute a given set of instructions if some other given conditions are met.