Published September 26, 2022 | Version v1
Journal article Open

Oracle as a data delivery tool for decentralized autonomous organizations

Description

The subject of the study. The effective functioning of decentralized autonomous organizations
(DAOs) is associated with moving from the digital level to the real level in order to find or provide
information and communicate with the real environment. Obtaining or transmitting necessary
information about certain real–world facts, or information from other digital databases that cannot
interact directly with the DAO, is provided through oracles as intermediaries between decentralized
databases and real–world events.
Results of work. In this article, we consider the oracle as a tool for collecting information for DAO,
able to ensure transition of information from the unstable and unsecured physical world in the digital
environment of blockchain technology, where information acquires new characteristics and values.
Oracle, as a tool with a function of information delivery, combines the functions of finding the necessary
information with the functions of ensuring the authenticity and encryption of data in the required format.
Conclusions. This article gives a general understanding of the concept of the oracle, and its
significance for the work of DAO, as well as development of digital projects built using blockchain
technology. Classification of oracles for work with DAO is also given together with characteristics of
their possible role for organization of data supply. In addition, the possibility of building a DAO with oracle
functions to perform non–standard tasks for the transportation and adaptation of information for
various purposes in a blockchain environment is considered. The article also presents main problems
that may arise in interactions of oracles with DAO, and suggests possible solutions.

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