The gap between decentralized technology and the conventional centralized format of doing business can be easily bridged with the help of Oracle solutions. While using the blockchain or smart contract, interaction with the external data is required. Similarly, conventional businesses working with the perspective of centralized data can also be tremendously benefited from access to on-chain data.
Oracle technology presents a credible way to foster interoperability between on-chain and off-chain data. With the help of the Oracle network, blockchain for smart contracts can easily communicate with the data and processes outside the domain of decentralized ledger, thereby offering the system the convenience of interoperability.
This specific competence is particularly useful for the real estate industry. The use of smart contracts in the industry has simplified the otherwise complex process of dealing with data and a large number of stakeholders. This also eliminates the unnecessary influence of bureaucracy off the segment and makes the dealing smooth and seamless.
When a smart contract is involved in the transaction process, the data related to real-world events can be easily transferred to the blockchain system. This can be done through the use of either inbound or outbound oracle systems. While the former is used for bringing the outside world data to the blockchain, the latter will facilitate the communication of the data from the blockchain system to the outside events. Information can take a variety of forms such as memos, surveys, reports, and can even communicate fluctuating prices to stakeholders.
Despite the advantages, there are challenges related to the integration of Oracle technology and its implementation within the constraints of the existing systems. The issues related to the privacy and security of the data need to be addressed in a more comprehensive manner. In addition, there is always a tendency of excessive centralization of an oracle which needs to be sorted out for making the technology more effective and usable in the long run.