# Oracles

## Overview and definitions

* An **oracle** is an entity on the blockchain and lives in the **oracle state tree** in a full node.
* An oracle is operated by an **oracle operator**.
* The oracle operator creates an oracle through posting a **oracle register transaction** on the chain.
* The oracle register transaction register an account as an oracle. (One account - one oracle)
* Any user can query an oracle by posting an **oracle query transaction** on the chain.
* The oracle query transaction creates an **oracle query object** in the oracle state tree.
* The oracle operator scans the transactions on the blockchain for the\
  oracle query transaction through whatever means. Probably on the operator's own node.
* The oracle operator responds to the oracle query by posting an **oracle response transaction** on the chain.
* The oracle response transaction modifies the oracle query object by adding the response.
* After the response have been added, the oracle query object is closed, and is now immutable.

## Technical aspects of Oracle operations

### Oracles have a published API

* The API defines the format that queries should have. (query\_format)
* The API defines the format answers will have. (response\_format)
* The API defines the ABI version under which the formats should be interpreted.
  * If the ABI version is 0 (`?AEVM_NO_ABI`):
    * the query and response formats are uninterpreted strings (byte arrays).
    * the queries and responses are treated as strings when called from sophia contracts.
  * For ABI version corresponding to AEVM/FATE:
    * the query and response formats must be type representations, encoded according to the ABI.
    * the queries and responses are interpreted as the types in the format specifications

### Oracle responses have a type declaration

* Types should correspond to types in the smart contract language.
* There should be incentives to use simple types in oracle answers (boolean, integer).
  * For example, through access cost in smart contracts.

### Should oracle responses have restrictions on use?

* For example, should only the creator of the query be able to use the\
  answer in a smart contract?
* Should the framework support encryption/decryption of answers?

### An oracle query/response has a TTL

* The actual response will remain on the chain.
* The response will be pruned from the state tree after a certain number of blocks.
* The cost of posting the answer should reflect the TTL.