Decision Support Model for Selecting the Optimal Blockchain Oracle Platform: An Evaluation of Key Factors

Smart contract-based applications are executed in a blockchain environment, and they cannot directly access data from external systems, which is required for the service provision of these applications. Instead, smart contracts use agents known as blockchain oracles to collect and provide data feeds to the contracts. The functionality and compatibility with smart contract applications need to be considered when selecting the best-fit oracle platform. As the number of oracle alternatives and their features increases, the decision-making process becomes increasingly complex. Selecting the wrong or sub-optimal oracle is costly and may lead to severe security risks. This article provides a decision support model for the oracle selection problem. The model supports smart contract decision-makers in selecting a secure, cost-effective, and feasible oracle platform for their applications. We interviewed oracle co-founders and smart contracts experts to refine and validate the decision model. Two real-world smart contract application case studies were used to evaluate the model. Our model prioritises and suggests more than one possible oracle platform based on the developer’s required criteria, security assessment and cost analysis. Moreover, this guided decision model serves to reveal issues that may go unnoticed if done haphazardly, reduce decision-making efforts and provide a cost-effective solution.