Decentralized Ethereum-Based Solution for Mitigating Oracle Single Point of Failure

Abstract

While blockchain is a secure and tamper-proof registry, it is not well-suited for storing large amounts of data due to its limited storage capacity and high cost. Additionally, storing data on a blockchain can lead to scalability issues and slow down the network. Therefore, it is generally not recommended to store large amounts of data on a blockchain. This paper proposes a solution to transmit data to smart contracts without compromising security with a single point of failure, using a bounty hunting mechanism to ensure fair concurrency between oracles retrieving data on an IPFS database. The proposed solution has been implemented as a prototype and its feasibility has been demonstrated through experiments.