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From Reality Keys to Oraclize. A Deep Dive into the History of Bitcoin Oracles

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  • Giulio Caldarelli

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 potential to decentralize traditionally centralized applications. However, being Bitcoin a decentralized machine, 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 trust models and approaches to solving the oracle problem is also outlined. Analyzing technical and social barriers to building oracles on Bitcoin, the transition to Ethereum will also be discussed.

Suggested Citation

  • Giulio Caldarelli, 2023. "From Reality Keys to Oraclize. A Deep Dive into the History of Bitcoin Oracles," Papers 2302.07911, arXiv.org, revised Feb 2023.
    • Handle: RePEc:arx:papers:2302.07911
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    References listed on IDEAS

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    1. Guillermo Angeris & Tarun Chitra, 2020. "Improved Price Oracles: Constant Function Market Makers," Papers 2003.10001, arXiv.org, revised Jun 2020.
    2. Jens Frankenreiter, 2019. "The Limits of Smart Contracts," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 175(1), pages 149-162.
    3. Giulio Caldarelli, 2022. "Overview of Blockchain Oracle Research," Future Internet, MDPI, vol. 14(6), pages 1-38, June.
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