Year

2024

Degree Name

Master of Research (Engineering and Information Sciences)

Department

School of Computing and Information Technology

Abstract

This thesis explores the pivotal role of blockchain oracles in Decentralised Finance (DeFi) and addresses the inherent challenges they pose, commonly referred to as the "oracle problem." The advent of blockchain technology has transformed the concept of trust in digital transactions, negating the need for traditional intermediaries and fostering the development of DeFi. This transformation is largely underpinned by smart contracts, which automate transactions on blockchain networks. However, the integration of real-world data into these contracts necessitates the use of blockchain oracles, thereby introducing complex challenges that threaten the integrity and reliability of DeFi networks.

The research examines the nature of the oracle problem, highlighting the contradiction between the deterministic nature of blockchains and the non-deterministic, often subjective nature of real-world data. This discrepancy raises significant concerns regarding the accuracy, reliability, and security of data provided by oracles, and in turn, the dependability of smart contract executions in the DeFi ecosystem.

FoR codes (2020)

4609 Information systems, 4604 Cybersecurity and privacy, 4606 Distributed computing and systems software

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Unless otherwise indicated, the views expressed in this thesis are those of the author and do not necessarily represent the views of the University of Wollongong.