Enhancing Data Integrity in Blockchain Oracles Through Multi-Label Analysis

Abstract

The oracle problem in blockchain refers to the critical need to obtain reliable external data for the correct execution of smart contracts. Dependence on these external sources involves risks of manipulation and inaccuracies that can compromise automated decisions on the blockchain. Although solutions such as decentralized oracles and consensus mechanisms have been developed, ensuring data integrity remains a significant challenge. A validation approach based on Integrity Multi-level Weighted Voting (IMWV) is proposed to address this need. This model employs a multi-level weighted voting scheme, assigning differentiated weights to Oracle data sources and their derived decisions. It optimizes the accuracy of validated information and reduces variability in volatile environments, such as coffee futures contracts in Colombia. After conducting 60 tests, the system achieved 59 successful transactions, confirming the effectiveness of the validation process. A single failure highlighted the importance of continuous monitoring to identify and correct errors, thus protecting the system’s integrity. This IMWV-based proposal represents a significant contribution by increasing the reliability of smart contracts, offering an adaptable approach to address the oracle problem in blockchain, and laying the groundwork for future research.