Identity & Authentication

E-signatures

E-signatures have become an increasingly popular way to obtain signatures on documents. They have modernized the signature process and helped companies avoid the costly overhead of obtaining a hand-written physical signature. With signatures being the most common way to authorize contracts, it’s a necessity that oracles give smart contracts access to leading e-signature companies like DocuSign.

Biometrics

Another verifiable way to authorize is through biometric data, such as a fingerprint or a retinal eye scan. Since biometrics are uniquely identifiable to a specific person, they can be an effective way to verify someone’s identity as long as there is a reliable database or source to cross-reference it against. Oracles can both deliver the biometric data to the network and connect it to different off-chain databases to verify authenticity.

Credentials

Using trusted hardware and/or advanced cryptography, Chainlink oracles securely handle the private account information of external systems and applications. This enables smart contracts to directly verify credentials, such as whether someone has the proper amount of funds or possesses a specific security key. Once Chainlink oracles relay the confirmation on-chain, the smart contract can trigger execution and settlement of funds. Bringing credentials on-chain can also be especially effective for verifying inputs before exchanging valuable assets.

Domain Name Services

Blockchains still have a steep learning curve for many people, particularly around dealing with long hexadecimal addresses. In order to improve user experience, oracles are being used to help transform hexadecimal addresses into human-readable names like “hello.crypto”.

Account Security

Two-factor authentication (2FA) is another method a user can leverage to secure their online accounts, requiring an additional layer of verification beyond a username and password. This increase of security prevents unauthorized access to confidential information, as well as preventing the transferring of funds without multiple verifications. With oracles, smart contracts are able to be enhanced with 2FA functionalities, directly protecting a user’s cryptocurrency holdings.