Silent Data [Oracle] vs Chainlink

Part 1 of 2

Understand the difference between
Silent Data [Oracle] and Chainlink, and discover the blockchain oracle best suited for your needs

Noam Elstein

February 16, 2024

Key Takeaways

- Chainlink Functions and Silent Data [Oracle] are both third party blockchain oracles

- Chainlink’s decentralised oracle network primarily handles publicly available data

- Silent Data [Oracle] leverages hardware enclaves to act on private data

- Decentralised oracle networks require users to share private API keys with multiple node operators

- Silent Data [Oracle] cannot read or access user secrets which are used as variables inside hardware enclaves

What is a blockchain oracle?

A blockchain oracle acts as a data gateway between Web2 resources and smart contracts. This allows users to pull data on-chain that was previously unavailable to the blockchain.

Both Chainlink Functions and Silent Data [Oracle] are examples of 3rd party blockchain oracles, i.e. oracles that do not own the data they handle when carrying out users’ requests.

See What is a Blockchain Oracle? for greater detail.

Data handled: Chainlink Functions vs Silent Data [Oracle]

Chainlink functions and Silent Data [Oracle] are differentiated by the type of data they specialise in handling.

Chainlink Functions

Chainlink primarily connects web3 dApps to public data e.g. to cryptocurrency price feeds. Users may also connect to password-protected data sources, but must hand over their API credentials to Chainlink’s oracle network in order to do so (more on this below).

Silent Data [Oracle]

Silent Data [Oracle] is used to call APIs that have some kind of authorization layer. One such use case is using the stripe API to accept card payments for on-chain assets.

Intel SGX technology is leveraged to preserve user’s privacy, namely their private API keys.

Overview: Chainlink Functions vs Silent Data [Oracle]

Characteristic

Chainlink Functions

Silent Data [Oracle]

Secrets: Usage

API Keys are encrypted at storage and then decrypted and visible to the node at runtime

Secrets are used as variables in the enclave and always encrypted even at runtime

Secrets: Encryption Method

Threshold encryption: master secret key is partitioned between DON nodes, but decrypted at runtime

Enclave encryption: user private keys are hidden from Silent Data [Oracle] servers

Usability

- Users must find their oracle nodes

- Users must encrypt their own secrets

- User-friendly Wizard

- SAAS style offering

- 2 options for trigger point (smart contract, or webhook)

Architecture

Decentralised oracle network: independent nodes perform user requests

Hardware privacy-preserving environment: user jobs are run within Intel SGX hardware secure enclaves

Reporting results

Off-chain reporting (OCR): DON nodes sign their results as part of a consensus algorithm

Intel SGX attestation: proves the data returned is obtained from the specified source and unmodified

Funding

LINK tokens (cryptocurrency)

USDC (pegged to USD)

Stay tuned for greater technical detail in part 2!
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© Copyright 2024 Applied Blockchain Ltd.

All rights reserved Applied Blockchain Ltd is a company registered in England and Wales. Company No. 09686276

© Copyright 2024 Applied Blockchain Ltd.

All rights reserved Applied Blockchain Ltd is a company registered in England and Wales. Company No. 09686276