Oracle Adapter
1 min read
Pronunciation
[awr-uh-kl uh-dap-ter]
Analogy
Like a translator converting between two languages so speakers can understand each other, an oracle adapter converts API responses into on‑chain data formats.
Definition
A software component that translates between blockchain smart contract interfaces and external data source APIs, normalizing and packaging data for oracle submission.
Key Points Intro
Oracle adapters bridge off‑chain APIs and on‑chain contracts by handling data fetching, formatting, and signing.
Key Points
Protocol translation: Converts REST/WebSocket data into JSON‑RPC or contract call payloads.
Normalization: Applies unit conversions, aggregation, and sanity checks.
Authentication: Manages API keys and credentials securely.
Caching: Reduces external requests via local buffers.
Example
A price oracle adapter fetches BTC/USD from Coinbase API, converts to 8‑decimals, and signs a price update for the oracle contract.
Technical Deep Dive
Adapter runs in a Node.js service, uses Axios to fetch API, applies mapping functions to assemble the `report()` call data, signs with oracle node key via web3.js, and sends transaction to the oracle smart contract.
Security Warning
Compromise of adapter code or API keys can feed false data; run in hardened environment and rotate credentials.
Caveat
Adapters add latency; ensure timely error handling and fallback data sources.
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