iExec DOracle

A flexible and secure Oracle Solution

Why do we need Oracles?

The Ethereum blockchain provides a global trustless computer: given some input and the smart contract code, the blockchain guarantees execution according to the Ethereum specification, by replicating the execution across thousands of nodes and implementing a consensus mechanism across all these nodes. Hence the execution of the contract is decentralized, and will happen without the need to trust any single actor.

Unfortunately decentralizing the execution is not sufficient. To be of any real-world use, a smart contract most often requires access to external, real-world information. For example an insurance smart contract could require data about the weather to trigger payment, or a hedging contract could require pricing data. This information is already available in the digital world: the web 2.0 is full of nice APIs that provide all kinds of data. It is however not straightforward to put this information on the blockchain: if the update message comes from a single wallet, then this wallet controls the whole execution outcome. It means the smart contract has to trust an off-chain actor (the owner of an Ethereum wallet) to provide such information, which defeats the purpose of decentralization: now the information provider becomes the trusted third party that decentralization was supposed to do away with in the first place!

Oracles are systems designed to solve this problem: providing the blockchain with data from the real world in the most secure and robust way possible. It turns out we at iExec have been working on this problem for a long time. Indeed an update to an Oracle (for example the price of a stock or the average temperature for a day) can be seen as the result of a specific type of off-chain computation, one that would involve calling an API and processing the response to return the final result. As a result the iExec infrastructure is perfectly suited to build an efficient and secure Oracle system: the iExec dOracle.

The iExec solution: the Decentralized Oracle (dOracle)

For two years iExec has been working on the design of the Proof of Contribution protocol, which provides a flexible and highly robust solution to the problem of off-chain computation. At its core it is a simple Schelling game between off-chain computation providers (Workers): a given number of Workers are randomly chosen in a much bigger group, and are assigned the same computation. Each of them proposes a result, and the result that is proposed by the biggest number of workers is taken as the overall computation result (see PoCo documentation for more details).

The PoCo is both flexible and robust: the trust level for the computation (e.g. for the Oracle update in the dOracle case) can be set arbitrarily, and determines the number of replications. It also includes a coherent on-chain incentive mechanism, that protects the whole system against any (financially sustainable) attack. Last but not least, it is cheap and scalable: the more Workers join the iExec platform, the more secure and the cheaper running a dOracle will be. iExec dOracle relies on random sampling among all the Workers on the iExec platform, along with an on-chain consensus algorithm and an integrated trust score system to make an attack on the dOracle result exponentially expensive.

iExec dOracle builds on top of the decentralized cloud computing platform developed by iExec to allow developers to easily create robust and secure decentralized oracle. Building an Oracle with iExec is therefore extremely simple: just create a dApp with the logic of the Oracle (querying an API, processing different results into a final one); the iExec platform will automatically replicate it across many different workers; then the PoCo will realize a consensus on the different values. The whole process is simple and as secure as you wish - provided enough money is paid for each execution / oracle update.

Why you should use iExec dOracle

iExec dOracle allows you to create your own Oracle, with custom logic, while benefiting from the security guarantees of the whole iExec platform.

  • It is secure. You can set the desired level of trust for your dOracle execution. The conjunction of random sampling and iExec’s built-in incentive and reputation systems makes your dOracle highly secured.

  • It is easy-to-use. It relies on 2 years of research and development to make the iExec platform simple and developer friendly. Creating your own personalized Decentralized Oracle only takes a simple dockerized application and a few lines of Solidity!

  • It is cheap. It does not rely on bribing or incentivizing honest behavior, only on random sampling and a powerful reputation system to make attack impractical.

How does it work?

Background: task execution on the iExec platform

The iExec architecture is two-sided: the on-chain part is a set of smart contracts that implement the PoCo, handle the incentive and adjudication systems; and the off-chain part is made of workers, that provide computing resources to execute the tasks, and schedulers, that dispatch the tasks to execute between the workers of the worker-pool they manage. Each side of the iExec platform (worker-pool, computation requester) create and sign orders that describe the kind of transaction they are willing to enter (type of hardware, minimum price, etc…). When several orders of different types are compatible they are matched together on the blockchain, to create a deal. Once a deal is made, the scheduler that is part of the deal will choose a set of workers in his workerpool to execute the task. Each worker will download the dApp (a docker container) and run it. Upon execution of the task, each worker sends back two values on the blockchain:

  • a hash of the result.

  • after consensus is reached, the corresponding result.

A normal execution ends when the deal is finalized; all the stakeholders are paid, and the computation requester is free to download the data pointed to by the results field of the Deal object on the blockchain.

iExec d'Oracle: general architecture

An iExec dOracle can be seen as an “on-chain API”: fundamentally it is a simple value-store smart contract, with accessors for other smart contracts to get its data, and an internal mechanism to update the data in the most secure way possible. The dOracle architecture is composed of two parts: an on-chain smart contract and a classical iExec dApp (packaged in a docker container).

Off-chain component:

The off-chain part of a dOracle is a classical iExec dApp, that will be executed on the iExec platform and be replicated on several workers as part of an iExec computation deal. It contains the oracle logic, for example to query a web API and process the result. Whenever an operator wishes to update the dOracle, it requests a computation like in a normal iExec deal, specifying the dOracle app as dApp, and the parameters if applicable. The dOracle result is written in the ${IEXEC_OUT}/computed.json file by the dApp, under the callback_data key.

$ cat ${IEXEC_OUT}/computed.json
{ 'callback-data': '0x48656c6c6f2c20776f726c6421'}

When the computation ends the worker will send both this callback-data (containing the oracle result) on the blockchain. The callback-data value is stored in the resultsCallback field of the Task object in the IexecProxy smart contract.

On-chain component:

The on-chain part is the dOracle contract. Anyone can request an update of its internal state by sending the id of a task corresponding to the execution of the corresponding dApp. With this id, the dOracle contract will query the blockchain and retrieve the deal object. It then checks that the execution passes the dOracle requirements (trust level, execution tag, that the app is right). If it does the dOracle contract then decodes the value in the results field and update its fields accordingly. The value is then accessible like a normal value on a smart contract.

Example: development and workflow of a price-feed application

A simple example of dOracle is available on Github. The following section goes through its different components, explaining what each of them does.

The PriceFeed dApp

The PriceFeed dApp is a simple Node.js script, available at Kaiko PriceFeed Source. Given a set of parameters, the application encodes its result so that it can be interpreted by the corresponding dOracle smart contract, stores it in ${IEXEC_OUT}/computed.json, and stores the hash of this encoded value to perform the consensus. The Worker will then send these values on-chain as part of the task finalization, where they will be accessible by the dOracle smart contract.

For example, given the parameters "BTC USD 9 2019-04-11T13:08:32.605Z" the price-oracle application will:

  • Retrieve the price of BTC in USD at 2019-04-11T13:08:32.605Z

  • Multiply this value by 10e9 (to capture the price value more accurately as it will be represented by an integer onchain)

  • Encode the date, the description ("btc-usd-9") and the value using abi.encode

  • Store this result in ${IEXEC_OUT}/computed.json under the callback-data key

iExec will then achieve PoCo consensus on the hash of the callback-data value, and will then submit callback-data values on-chain, in the Task object on the IexecProxy smart contract.

Once your oracle dApp is written, you can build it into a Docker image and make it available on the iExec platform as explained here.

The dOracle generic contract

Every dOracle must inherit from the IexecDoracle contract (source available on Github and npm).

This contract stores the following fields:

IexecInterfaceToken public iexecproxy;
address             public m_authorizedApp;
address             public m_authorizedDataset;
address             public m_authorizedWorkerpool;
bytes32             public m_requiredtag;
uint256             public m_requiredtrust;

In particular, the m_authorizedApp must be the address of the smart contract of the dOracle dApp, and the m_requiredtag describes the parameters of the iExec Task necessary to validate the dOracle update.

The dOracle exposes mainly three internal functions, that may be used by the contracts that inherit from it:

A constructor:

constructor(address _iexecproxy) public

A function to initialize/update the settings:

function _iexecDoracleUpdateSettings(
        address _authorizedApp
,       address _authorizedDataset
,       address _authorizedWorkerpoo
,       bytes32 _requiredtag
,       uint256 _requiredtrust
)
internal

The update function, that takes in input a task id, and reads the Task object data from the IexecProxy smart contract to perform the required checks (the execution must be completed; the app, the dataset, and the workerpool must be authorized; the trust level and tags mus be valid). The IexecProxy already checked that the hash of the resultsCallback is equal to the resultDigest (over which the consensus was reached). If the task passes the checks then it returns the results field of the Task object, i.e. the result of the dOracle dApp computation.

function _iexecDoracleGetVerifiedResult(bytes32 _doracleCallId)
internal view returns (bytes memory)

A dOracle smart contract should inherit from the generic IexecDOracle contract, and expose two main functionalities:

  • An update function, that will call the internal (and inherited) _iexecDoracleGetVerifiedResult function and process its result to update the dOracle contract internal state.

  • One or several accessor functions, that allows other smart contract to access the oracle value(s).

The PriceOracle dOracle contract

In the PriceFeed example, the PriceOracle smart contract is made of three parts:

  • Its internal state description: a TimedValue struct storing the oracle data for a given value, and a values field that maps an index of the form “BTC-USD-9” to the corresponding TimedValue struct value.

struct TimedValue
{
        bytes32 oracleCallID;
        uint256 date;
        uint256 value;
        string  details;
}

mapping(bytes32 => TimedValue) public values;

This also allows to read the resulting prices. For example, to get the most recent price of BTC in USD with 9 place precision (as described above), query values(keccak256(bytes("BTC-USD-9"))) from the dOracle contract and this will return a structure containing the value, the associated date, and the details of the request.

  • The update function processResult, that takes the task id of an execution of the dOracle dApp, calls the internal _iexecDoracleGetVerifiedResult and processes the result to update the values map.

function processResult(bytes32 _oracleCallID)
public
{
        uint256       date;
        string memory details;
        uint256       value;

        // Parse results
        (date, details, value) = decodeResults(_iexecDoracleGetVerifiedResult(_oracleCallID));

        // Process results
        bytes32 id = keccak256(bytes(details));
        require(values[id].date < date, "new-value-is-too-old");
        emit ValueChange(id, _oracleCallID, values[id].date, values[id].value, date, value);
        values[id].oracleCallID = _oracleCallID;
        values[id].date         = date;
        values[id].value        = value;
        values[id].details      = details;
}

The PriceFeed dOracle also declares an event ValueChange, that is fired whenever an update is made.

  • An updateEnv function, that can be used by the owner of the dOracle to update its parameters. It simply calls the _iexecDoracleUpdateSettings function of its parent IexecDoracle contract.

function updateEnv(
        address _authorizedApp
,       address _authorizedDataset
,       address _authorizedWorkerpool
,       bytes32 _requiredtag
,       uint256 _requiredtrust
)
public onlyOwner
{
        _iexecDoracleUpdateSettings(_authorizedApp, _authorizedDataset, _authorizedWorkerpool, _requiredtag, _requiredtrust);
}
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