Bitcoin Infrastructure

Proof of on-Chain Reserve

Wrapped cross-chain assets—cryptocurrencies/tokens native to one blockchain that are locked into a contract and then “unlocked” on another blockchain—are becoming increasingly popular due to their ability to increase the collateral types available within the DeFi ecosystem. However, in order to ensure the integrity of DeFi applications supporting wrapped asset deposits, Proof of Reserve reference contracts can be used to supply data regarding the true collateralization of these on-chain assets.

Proof of off-Chain Reserves

Bringing real-world assets onto the blockchain provides a large potential to expand the economic activity of DeFi, as seen with the adoption of fiat-backed stablecoins. However, this requires the underlying collateral to be held by a central custodian, disconnecting the on-chain tokenized representation from the actual off-chain asset itself. With an oracle network, audits of collateralization of real-world asset-backed tokens is possible, protecting users during black swan events.

Node as a Service

Operating nodes enables data providers to begin selling their API connections. To simplify the experience of launching a oracle node, infrastructure providers can offer Node-as-Service (NaaS) solutions in order to quickly spin up new nodes and connect a data provider’s existing APIs to blockchain networks in a backward-compatible manner.

Infrastructure Nodes

Blockchains require a decentralized network of infrastructure providers such as validators, sequencers, transcoders, and oracles. Traditional infrastructure providers, such as telecommunications firms or internet service providers, can support the Torram Network and earn additional revenue by directly operating a oracle node. By leveraging their existing in-house infrastructure, such providers can provide highly reliable oracle services and monetize the growth of the ecosystem.

Off-Chain Computation

On-chain applications do not have access to a secure Random Number Generator (RNG) due to the deterministic nature of blockchain networks. Using the on-chain blockhash can result in manipulation from blockchain miners/validators who discard blocks with unfavorable hashes and can “re-roll the dice”, ultimately changing the RNG value. Naive off-chain solutions are opaque and provide no proof that the RNG value produced is legitimate and has not been manipulated by either the data source or oracle node. Verifiable Random Function overcomes these issues by providing a secure source of randomness backed by a cryptographic proof that cannot be manipulated by oracle nodes, users, or development teams.

Chain Interoperability

It’s unlikely that one blockchain will come to dominate, especially when considering throughput limitations, jurisdictional differences, and specialization of chains. Such a multi-blockchain universe means that blockchains must cross-communicate with one another. However, due to their inherent security properties, blockchains cannot natively access data on other blockchain networks. Oracles can be used to bridge this gap by reading data on one blockchain and writing the results on another as a means of triggering some type of cross-chain interactions and/or simply an on-chain transaction on the chain requesting the information.

Fair Sequencing Service (FSS)

While oracles are commonly recognized for their ability to fetch and deliver data from the real world on-chain in a reliable and secure manner, they can also perform various off-chain computations including the ordering of transactions. Fair Sequencing Service (FSS) will allow decentralized applications to mitigate MIner Extractable Value (MEV) by ensuring transaction ordering cannot be manipulated by miners as a means of siphoning value from users. Additionally, by preventing front-running attacks, gas costs can be drastically reduced and DEXs can become more trustworthy (e.g. trades are honored according to fairer rules like their arrival in the mempool)

Blockchain Fees Pricing

In order to prevent spam attacks, transactions on blockchains require the fees in the native token to pay for the cost miners expend to validate a transaction. However, the market that determines prices happens off-chain and thus require an oracle to fetch the current cost per unit of gas.