SOME OF DISADVANTAGE OF THE BLOCKCHAIN ORACLE IN THE CRYPTOCURRENCY WORLD AND ECOSYSTEM.

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Good day to you all, the title of my post today is titled "some of the disadvantages of the blockchain Oracle in the cryptocurrency world and ecosystem" but before I go on to discuss and explain these disadvantages which I have researched and prepared to share with you, I would first like discuss and talk a little on the blockchain oracle if possible giving a very clear and simple definition so that all you all my readers will have no problem understanding what the blockchain oracle is.

What is blockchain oracle? Blockchain oracles can simply be defined to be a third party or intermediary mechanism and tool that basically facilitates services and play the role that is aimed towards providing external data to smart contracts on the block chain network, basically, they play the role, serve as and facilitate the bridging and connection of blockchain based and decentralized networks to the real world data sources, for the purpose of providing, allowing and enabling smart contracts to gain access to data and information such as market prices, weather data, or sports scores.

Therefore, it would not be false or exaggerating to say that the blockchain oracles play a very crucial and important role in the ecosystem and world of cryptocurrency and blockchain, enabling and facilitating the interoperability of blockchain based applications and off chain data so as to facilitate and carry out complex transactions more effectively and efficiently however with all these advantages the blockchain oracle still poses certain disadvantages join me and see what these disadvantages are.

POSES RISK OF CENTRALIZATION

Decentralization is one of the foundational, basic and underlying features of the blockchain network, decentralization is important and very vital to the blockchain network because it is the feature of decentralization that makes the blockchain network function and operate in a way that the control and authority for decision making, governance and transaction execution is distributed amongst a number of individuals or participants.

Decentralization allows for effective governance and transactions execution amongst other things and by using and implementing blockchain oracle in the blockchain neywork, this decentralization is threatened because the use of blockchain oracle and the interaction or dependence of blockchain networks on centralized entities for data and all that will only disrupt the decentralization of the blockchain network eliminating it completely if care is not taken.

Therefore making the implementation of blockchain oracle in blockchain networks to serve as a data source for the networks smart contract is a disadvantage why because of it facilitates centralization, this centralization introduces risks like the single point of failure, this undermines the nature and structure of the blockchain network as being a trustless network, seeing as the accuracy and reliability of the data used by the smart contract depend on the integrity and trustworthiness of the centralized entities and the oracle provider.

RISK OF DATA MUTABILITY AND TAMPERING

The feature and property of immutable and tamper proofed is another very important, foundational and basic feature and property of the blockchain network which is also threatened by the implementation and adoption of the blockchain oracle and this in itself counts as being another disadvantage of the blockchain oracle because without this immutability and tamper proof the blockchain network would not be able to store data and information in a very secure, safe and authentic.

However with the implementation of blockchain oracle the network basically risk of data manipulation and as a result compromised the network security and destroying the blockchain reputation of being immutable and tamper proof this data mutability and tampering is sure to occur because of the fact that the entity that provides the data and information through the oracle is centralized and not part of the blockchain network as a result they can or may provide or false and inaccurate or incorrect and tampered data to the smart contracts.

Additionally the blockchain operating on inaccurate and falsified data from malicious or compromised centralized data sources will therefore lead to very very bad and damaging consequences, results and outcomes in the decentralized applications (dApps) and smart contracts where it was used it would undermine and diminish the trust and reliability of the block chain based systems and network destroying the trust and confidence the users, investors and stakeholders have in the blockchain.

PRIVACY CONCERNS

Another disadvantage of implementing the blockchain oracle in the blockchain networks is that, the blockchain oracle is designed and structured to operate is one that raises a lot of privacy concerns in the sense that there might be risks or possibilities that certain sensitive and important information might be given out by the centralized data sources to the blockchain network along the way and this concern will cause challenges and opposition.

Additionally if this should happen that is, if a sensitive and classified data or information is ever transmitted to the blockchain network it will be made public and will be accessible to all users and participants owing to the transparent nature of the blockchain network and this will be damaging and compromising to the owner or people who that data affects hence, this risk is considered to be a disadvantage.

Furthermore, owing to the potential and possibility of this risk, this privacy concerns, some participants, users, investors and stake holders might be reluctant or completely refuse and decline to make use of decentralized applications or any blockchain based networks or systems that is dependent on the blockchain oracles to access or store sensitive and personal information or data, such as personal identity data.

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LACKS RELIABILITY AND ACCURACY

Another disadvantage of implementing the blockchain oracle is that they basically are not reliable and also they lack accuracy, this lack of accuracy and reliability basically arises from the fact that the blockchain oracles are subject and prone to certain limitations and uncertainties seeing as they rely on centralized external entity and data sources that may be prone and subject to errors, delays, or inconsistencies and regulatory challenges.

Additionally the blockchain oracles are so subject to factors such as network latency or delay, data transmission delays or latency, and data or information source reliability can affect the timeliness and accuracy of data provided to smart contract by the blockchain oracle, inaccurate or unreliable data and information sources can lead to or result in compromising the integrity and functionality of decentralized applications and systems.

CONCLUSION

In conclusion, the disadvantages of the blockchain oracle as I have discussed them are four in number each with their consequences to the blockchain network and they are basically centralization risks, security vulnerabilities, data manipulation and mutability, raising of privacy concerns and diminishing of reliability and accuracy are all among the key disadvantages and challenges that the block chain oracle is responsible for in the crypto space, I really do hope you enjoyed reading and hope to see your comments.