What is an OVS

OVS

Blockchain Oracle Validated Services (OVS) are decentralized blockchain Oracle protocols built on top of EO. The OVS framework introduces a new paradigm for blockchain Oracle design, focusing on separating infrastructure from specialized data solutions, creating a mature market with a clear separation of concerns.

By providing a platform for diverse participants to create specialized blockchain oracles, EO aims to foster a more competitive market that enhances the quality and reliability of data available to smart contracts. This approach not only democratizes access to data services but also ensures that blockchain applications can benefit from the expertise of a wide range of data and computation providers.

For a deeper understanding of the vision and necessity behind OVS, please refer to EO Vision

What Does It Take to Build a Blockchain Oracle?

Blockchain Oracles enhance blockchains by integrating off-chain data while maintaining the core properties of blockchains. Blockchain oracles eliminate dependence on a central third party by introducing redundancy through a distributed reporting system.

A decentralized blockchain oracle needs to address the following questions:

• Sources - What are the qualitative sources for this type of data? What off-chain computation should be transmitted to the blockchain?

• Aggregation - What is the optimal method for aggregating validator reports into a single value? Considerations include resistance to manipulation (robustness), performance, simplicity, and more.

• Incentive Management and Security - How can validator participation be assessed and appropriately rewarded or penalized? In particular, how can misreports be detected and distinguished between honest mistakes and malicious manipulation attempts?

Answering these questions requires expertise in various domains, including data science, cryptography, game theory, and the specific field from which the data originates. We do not want a cryptographer performing poor data science nor a data scientist executing inadequate cryptography.

Audience

Potential OVS builders include:

1. Blockchain Oracle-First Companies - Teams that build specialized blockchain oracle services using EO's infrastructure.

2. Blockchain Oracle-Dependent Products - Projects that need custom blockchain Oracle solutions not currently available.

3. Internal Blockchain Oracle Needs - Teams looking to connect their existing operations on-chain through blockchain Oracle integration.

Next, the key features of the EO stack are explored, which teams can use to build their OVS.