# kaal:claim:4529715-023

**Claim.** Blockchains cannot access off-chain data, and resolving this by using centralized oracles nullifies the advantages of decentralized systems while creating major security risks such as bribing and intimidation.

**Type.** failure  **Support.** argued

**Holds when.**

- oracle dependent smart contracts

**Source quote.**

> There is something known as the oracle problem, which is the fact that blockchains themselves can't access off-chain data. Using centralized oracles nullifies the advantages of decentralized systems, and are major security risks (such as bribing, intimidation, etc.)

**From.** Wulf A. Kaal, Josh Bykowski, *Decentralized Autonomous Organizations (DAO) – A Market Meta Analysis* (2023), Oracle DAOs, page 70

**Cite as.** Wulf A. Kaal, Josh Bykowski, Decentralized Autonomous Organizations (DAO) – A Market Meta Analysis (2023). SSRN: https://ssrn.com/abstract=4529715

**Verify.** sha256 of source PDF `2d71961e8c449afbeaf45ca4f53de8a575d45c77d6960b767d3d1d0874f296b5` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Bykowski%20-%202023%20-%20Decentralized%20Autonomous%20Organizations%20%28DAO%29%20%E2%80%93%20A%20Market%20Meta%20Analysis.pdf

**Failure mode.** centralized-oracle-defeat  (family: oracle-and-input-corruption)

**Topics.** smart-contracts, decentralization, consensus-and-security, risk-and-incentives

**Keywords.** oracles, oracle-problem, centralization, security-risk, smart-contracts

**Related claims.**

- contests: https://wulfkaal.github.io/claims/3782217-015

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