{"id":161,"date":"2014-07-27T03:36:00","date_gmt":"2014-07-27T03:36:00","guid":{"rendered":"http:\/\/blog.holytransaction.com\/smart-contracts-may-depend-on-smart-oracles\/"},"modified":"2020-11-09T06:59:52","modified_gmt":"2020-11-09T04:59:52","slug":"smart-contracts-may-depend-on-smart-oracles","status":"publish","type":"post","link":"https:\/\/holytransaction.com\/blog\/2014\/07\/smart-contracts-may-depend-on-smart-oracles.html","title":{"rendered":"Smart contracts may depend on Smart Oracles, said CTO of Ripple Labs"},"content":{"rendered":"<div class=\"post_content\" style=\"text-align: justify;\">\n<div style=\"text-align: justify;\"><b><i>Smart contracts may depend on Smart Oracles to inform contracts about the state of the outside world, said CTO of Ripple Labs <\/i><\/b><\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">(<a href=\"https:\/\/bitcoinmagazine.com\/15187\/ripple-labs-cto-designs-smart-contracts\/\">BitcoinMagazine<\/a>) Stefan Thomas is one of the more talented and respected developers in<br \/>\nthe space. An old hat at this young technology, he has been making<br \/>\nwaves as the CTO of Ripple labs. In a recent effort he has set his<br \/>\nsights on smart contracts technology. The designs and implementation he<br \/>\nand his team have come up with are interesting, to say the least.<\/div>\n<div style=\"text-align: justify;\">In a white paper entitled <a href=\"https:\/\/github.com\/codius\/codius\/wiki\/Smart-Oracles:-A-Simple,-Powerful-Approach-to-Smart-Contracts\">Smart Oracles<\/a>, we see described a novel, simple, and flexible approach to smart contracts.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">In such a system, rules can be written in any programming language,<br \/>\nand contracts can interact with any service that accepts<br \/>\ncryptographically signed commands. The paper also includes an<br \/>\nimplementation of smart oracles, called <a href=\"https:\/\/codius.org\/\">Codius<\/a> (based on the Latin \u201cius\u201d meaning \u201claw\u201d).<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Smart contracts are an exciting new frontier for technology,<br \/>\nbusiness, and law that have the potential to usher in a wave of<br \/>\ninnovation and serve as a building block for a next chapter of the<br \/>\ninternet.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">The concept of a smart contract is to formally encode the conditions<br \/>\nand outcomes of a legal agreement into a computer program. Rather than<br \/>\nrely on another party to enforce the terms of the arrangement, the<br \/>\nobligations of a smart contract are settled automatically and<br \/>\nautonomously through the execution of its code.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">As such, math-based currency networks like <a href=\"https:\/\/bitcoin.org\/\">Bitcoin<\/a> and <a href=\"https:\/\/ripple.com\/\">Ripple<\/a><br \/>\nprovide an important building block for smart contracts by allowing the<br \/>\ntransfer of digital assets with a cryptographic signature. The benefits<br \/>\nof using smart contracts instead of traditional contracts are increased<br \/>\nspeed, efficiency, and trust that the contract will be executed exactly<br \/>\nas agreed.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<table class=\"tr-caption-container\" style=\"float: right; text-align: left;\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\"><a style=\"clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;\" href=\"https:\/\/encrypted-tbn2.google.com\/images?q=tbn:ANd9GcR6zXlFf4eUvmbt9uVjGyqv5-2jd4SsoCe-iGlJobB0nk3Ok1mF\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/encrypted-tbn2.google.com\/images?q=tbn:ANd9GcR6zXlFf4eUvmbt9uVjGyqv5-2jd4SsoCe-iGlJobB0nk3Ok1mF\" width=\"268\" height=\"320\" border=\"0\" \/><\/a><\/td>\n<\/tr>\n<tr>\n<td class=\"tr-caption\" style=\"text-align: center;\"><i>Uatu, The Watcher<\/i><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div style=\"text-align: justify;\">Most proposals for smart contracts depend on independent entities to<br \/>\ninform contracts about the state of the outside world. Bitcoin contracts<br \/>\nrely on \u201c<a href=\"https:\/\/en.bitcoin.it\/wiki\/Contracts#Example_4:_Using_external_state\">oracles<\/a>\u201d<br \/>\nto attest to facts from the outside world by introducing signatures<br \/>\ninto the network if and only if specific conditions are met.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">For instance, the smart contract for a will would need to know<br \/>\nwhether or not someone had died. Such a system typically requires the<br \/>\nsmart contract code to be executed on the consensus network itself. But<br \/>\nencoding advanced logic and executing untrusted code is complicated to<br \/>\nintegrate. Until now, this has been one of the primary obstacles for<br \/>\ncreating a viable smart contract system.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Smart oracles take the concept of oracles a step further by placing<br \/>\nthe untrusted code execution in the oracles\u2019 hands. Smart oracles, then,<br \/>\nare trusted or semi-trusted entities that can both provide information<br \/>\nabout the outside world and execute the code to which the contracting<br \/>\nparties agreed.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">By decoupling the execution of untrusted code from the consensus<br \/>\ndatabases and other services that track and transfer asset ownership,<br \/>\nsmart contracts can be achieved without increasing the complexity of<br \/>\nexisting consensus networks like Bitcoin and Ripple.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<table class=\"tr-caption-container\" style=\"float: left; text-align: left;\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\"><a style=\"clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;\" href=\"https:\/\/img4.wikia.nocookie.net\/__cb20090516064128\/wowwiki\/images\/thumb\/9\/9e\/Algalon_the_Observer.jpg\/200px-Algalon_the_Observer.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"http:\/\/img4.wikia.nocookie.net\/__cb20090516064128\/wowwiki\/images\/thumb\/9\/9e\/Algalon_the_Observer.jpg\/200px-Algalon_the_Observer.jpg\" alt=\"\" width=\"178\" height=\"200\" border=\"0\" \/><\/a><\/td>\n<\/tr>\n<tr>\n<td class=\"tr-caption\" style=\"text-align: center;\"><i>Algolon, The Observer<\/i><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div style=\"text-align: justify;\">Without being tied to any single consensus network, contracts created<br \/>\nusing smart oracles can interact with multiple networks at once as well<br \/>\nas virtually any type of online service. This means that a single smart<br \/>\ncontract could interact with <a href=\"https:\/\/flyp.me\/en\/top-cryptocurrencies\/what-is-bitcoin\/\">Bitcoin<\/a> and Ripple, web-based services<br \/>\nlike PayPal, Google, Ebay, etc. or even other Internet protocols, such<br \/>\nas SSH, LDAP, SMTP and XMPP.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">The Codius implementation of smart oracles is designed to provide<br \/>\ndevelopers with a robust and familiar platform to build smart contracts<br \/>\nand hit the ground running. Because Codius uses <a href=\"https:\/\/static.googleusercontent.com\/media\/research.google.com\/en\/us\/pubs\/archive\/34913.pdf\">Google\u2019s Native Client<\/a> to sandbox untrusted code, developers can write contracts in any programming language.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Codius and smart oracles in general open up new possibilities for<br \/>\ndevelopers, entrepreneurs, and enterprising legal and financial<br \/>\nprofessionals. Agreements that previously required lengthy legal<br \/>\ncontracts can be translated into code and run automatically by smart<br \/>\noracles.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Smart contracts hold the potential to empower people to build a<br \/>\nfairer, more affordable and more efficient legal system and smart<br \/>\noracles are one of the simplest ways to realize that dream. Potential<br \/>\nuse cases include bridges between value networks, escrow, cryptocurrency<br \/>\nwallet controls, auctions for digital assets, derivatives, debt and<br \/>\nequity, smart property and voting.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Since the system is extensible, the functionality will continue to expand as the ecosystem develops.<\/div>\n<\/div>\n<p>Open your free digital wallet <a href=\"https:\/\/holytransaction.com\/app#!\/signup\">here<\/a> to store your cryptocurrencies in a safe place.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Smart contracts may depend on Smart Oracles to inform contracts about the state of the outside world, said CTO of Ripple Labs (BitcoinMagazine) Stefan Thomas is one of the more talented and respected developers in the space. An old hat at this young technology, he has been making waves as the CTO of Ripple labs. [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":660,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,216,299,553,591,593],"tags":[894,975,1210,1247,1249],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.6 (Yoast SEO v22.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Smart contracts may depend on Smart Oracles, said CTO of Ripple Labs -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/holytransaction.com\/blog\/2014\/07\/smart-contracts-may-depend-on-smart-oracles.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Smart contracts may depend on Smart Oracles, said CTO of Ripple Labs\" \/>\n<meta property=\"og:description\" content=\"Smart contracts may depend on Smart Oracles to inform contracts about the state of the outside world, said CTO of Ripple Labs (BitcoinMagazine) Stefan Thomas is one of the more talented and respected developers in the space. 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