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Smart contracts promise a new way to create digital agreements which form the backend of key global industries from financial derivatives to insurance to trade finance. However, in order to maintain a contract’s overall reliability, the inputs and outputs to the contract also need to be secure. In this talk, we’ll examine what makes an oracle mechanism reliable enough to be used by smart contracts for external data delivery, access to web APIs and off-chain payments. We’ll look at how a decentralized network can make oracle mechanisms more secure. We’ll review the security risks and failure scenarios to avoid when using oracles and share how developers should set up methods to maximize success. Finally, we will present an implementation utilizing a Truffle Box which gives the user a complete working Chainlink example contract with tests.
