Before the advent of alternative blockchains such as Ethereum, the future of decentralization was all in the hands of Bitcoin. Together with Nakamoto itself, early developers were trying to leverage Bitcoin's potential to decentralize traditionally centralized applications. However, because Bitcoin was a decentralized machine, the available non-trustless oracles were considered unsuitable. Therefore, strategies had to be elaborated to solve the so-called "oracle problem" in the newborn scenario. By interviewing early developers and crawling early forums and repositories, this paper aims to retrace and reconstruct the chain of events and contributions that gave birth to oracles on Bitcoin. The evolution of early protocols, along with the difficulties encountered in their development, are also outlined. Analyzing technical and social barriers to building oracles on Bitcoin, the transition to Ethereum will also be discussed.

Before Ethereum. The Origin and Evolution of Blockchain Oracles

Giulio Caldarelli
2023-01-01

Abstract

Before the advent of alternative blockchains such as Ethereum, the future of decentralization was all in the hands of Bitcoin. Together with Nakamoto itself, early developers were trying to leverage Bitcoin's potential to decentralize traditionally centralized applications. However, because Bitcoin was a decentralized machine, the available non-trustless oracles were considered unsuitable. Therefore, strategies had to be elaborated to solve the so-called "oracle problem" in the newborn scenario. By interviewing early developers and crawling early forums and repositories, this paper aims to retrace and reconstruct the chain of events and contributions that gave birth to oracles on Bitcoin. The evolution of early protocols, along with the difficulties encountered in their development, are also outlined. Analyzing technical and social barriers to building oracles on Bitcoin, the transition to Ethereum will also be discussed.
2023
11
50899
50917
Bitcoin; blockchain; contracts; oracles; extrinsic data; multi-signature; OP_return
Giulio Caldarelli
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2318/1919362
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