Mastering Blockchain - Second Edition

Contest-driven decentralization

In the method involving competition, different service providers compete with each other in order to be selected for the provision of services by the system. This paradigm does not achieve complete decentralization. However, to a certain degree, it ensures that an intermediary or service provider is not monopolizing the service. In the context of blockchain technology, a system can be envisioned in which smart contracts can choose an external data provider from a large number of providers based on their reputation, previous score, reviews, and quality of service.

This method will not result in full decentralization, but it allows smart contracts to make a free choice based on the criteria just mentioned. This ...