Chainlink
Mixicle निजी ओरेकल आरेख
Context
This figure appears in Section 4 during the description of Mixicles, a confidentiality-preserving DeFi instrument that fits naturally into the DON framework. It illustrates how a basic Mixicle realizes a binary option (Example 2, involving Alice and Bob betting on Carol's Bubble Token) while concealing the underlying asset from on-chain observers. The figure shows the simplified construction before discussing more complete confidentiality properties.
What This Figure Shows
The figure depicts a basic Mixicle in which the oracle (DON) receives a price query and determines the binary outcome switch(r) from the underlying price r. Instead of reporting r to the smart contract SC—which would reveal the asset—the oracle sends only the binary value switch(r) via a Switch component. SC is designed to make a correct payment based solely on switch(r), so an on-chain observer sees only a binary signal with no information about the underlying asset or the nature of the bet. The DON additionally places an encrypted audit trail on the ledger under the auditor's public key, enabling confidentiality-preserving auditability.
Significance
Mixicles demonstrate that sophisticated financial instruments with strong confidentiality properties can be built on public blockchains using the DON's off-chain computation capabilities. This opens up a wide range of currently infeasible private DeFi applications, including confidential derivatives, private lending, and confidential asset management, without sacrificing auditability.
