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The oracle associates blockchain domain names with off-chain personal information to improve the payment experience while ensuring security.
Original title: “Horrible cryptocurrency payment experience, you must have experienced it too”
Written by: Chainlink
Do you spend half an hour repeatedly checking when you are paying for cryptocurrency, fearing that you may enter the wrong address with your swipe? Or will you transfer one or two coins before the official transfer to see if it can succeed?
When we make cryptocurrency payments, we don’t even know any information about the recipient, even who the recipient is. It’s scary to think about it!
There is no such problem in traditional payment systems. For example, if you pay with Venmo or Paypal, you can see the recipient’s username, profile picture, social media account, email address or other identifying information.
Method 1: Blockchain domain name
Blockchain domain name refers to the username of the user who receives the encrypted currency. This is the DNS2.0 domain name. Users can store it in their own encrypted currency wallet instead of saving it through a domain name management platform such as Godaddy. Blockchain domain names can be used not only for decentralized websites, but also for receiving payments, which is like a decentralized Venmo account.
The user names the domain name himself and uses it to collect payments, which will greatly enhance the user experience of cryptocurrency transfer. However, a lot of additional information needs to be added, such as the payee’s photo, or at least their web profile picture; and the payee’s online records related to the transaction. For example, if I want to pay someone to help me with marketing, is this cryptocurrency address connected to an account that has previously provided such services?
Method two: oracle
With the oracle, you can access off-chain data sources on-chain to verify data. Most reputation data is stored in off-chain rather than on-chain applications. Social media accounts, email addresses, and other identification information are stored in the off-chain system, and these information must be verified. The oracle machine can solve the problem that the encrypted currency address cannot access the identity information under the chain, and enhance the security of encrypted currency payment.
Now that the blockchain domain name and the oracle are combined together, users can completely say goodbye to the nerve-tightening cryptocurrency payment process. How does it work?
First link your Twitter username to the blockchain domain name, so that anyone who transfers money to you can see your account first.
First, you need to register a blockchain domain name.
Then sign a message with the private key and associate your domain name with your Twitter account.
Next, send a tweet from your Twitter account to prove that this account is yours. This tweet will be transmitted to the Chainlink decentralized oracle network, hashed and encrypted, stored on the Ethereum blockchain, and associated with a domain name.
Finally, you log in to your wallet, enter the Ethereum domain name, and you can see your Twitter account before transferring.
What is the point of this?
If cryptocurrency is to become a mainstream payment method, it must first ensure that the payer is correct. Are you 100% sure that you are paying for the right person when paying for cryptocurrency? Even my avid supporter of encryption technology will repeatedly check my payment recipient for errors before making a payment.
Therefore, the security of cryptocurrency payments must be enhanced to become more mainstream. Verifying whether the social media account is bound to the encrypted currency address can slightly relieve the tension and uncertainty when we send the encrypted currency.
How will it develop in the future?
This is the first time the oracle has been used to bind real-world IDs (Twitter accounts) to the blockchain, but I believe there will be more innovative attempts in the future. In the future, it will be possible for us to verify a variety of off-chain identity information and combine them all together. Users will have control, and data will be stored on the blockchain. Users can decide which personal information to verify and which applications to share with.
At that time, payment and real-world identity information will be put on the blockchain.
Click here to try it out now!