Smart Contract Data Feed Framework for Privacy-Preserving Oracle System on Blockchain

Abstract

As blockchain-based applications and research such as cryptocurrency increase, an oracle problem to bring external data in the blockchain is emerging. Among the methods to solve the oracle problem, a method of configuring oracle based on TLS, an existing internet infrastructure, has been proposed. However, these methods currently have the disadvantage of not supporting privacy protection for external data, and there are limitations in configuring the process of a smart contract based on external data verification for automation. To solve this problem, we propose a framework consisting of middleware of external source server, data prover, and verification contract. The framework converts the data signed in the web server into a proof that the owner can prove with zk-SNARKs and provides a smart contract that can verify this. Through these procedures, data owners not only protect their privacy by proving themselves, but they can also automate on-chain processing through smart contract verification. For the proposed framework, we create a proof using libsnark for server data and show the performance and cost to verify with Solidity the smart contract language of the Ethereum platform.