A newbie question about smart contracts (I hope this is the correct place)

In one of the "Ethereum for dummies" articles, I found an example of a possible "smart contract":
John is a farmer, and he is afraid the temperature will drop down zero Celsius and destroy his crops,
so instead of make an insurance with a regulated insurance company (and endless trials in a case of a disagreement),
he signs a smart contract with somebody else which may be unknown to him (did I mention "no regulation"?..) that if the temperature in his region will fall under zero between October 2017 and April 2018, he will be compensated by 1000 and if not he will pay 20 as an insurance fee. No forms, no complex procedures, just a simple rule and a code which will take a decision.
My question is - how the system can get the details about the minimum temperature?
Or another example - gambling about football: how the contract can know the results?
Does the contract include also a link to a reliable internet site, and access it automatically?
Maybe I missed something?
Thanks in advance.

Comments

  • td6778td6778 Member Posts: 11
    Take a look at oraclize.it, this might help steer you in the right direction for an answer.
  • erstwealerstweal MidwestMember Posts: 109 ✭✭
    Yes, pretty much. Need to tap into a reliable api or web data source to validate the outcome.
  • hellspawnhellspawn china beijingMember Posts: 7
    Yes, for the insurance company example, you do need a reliable data source to get the temperature.For the example of football gambling, it does require an honest and reliable website as a result provider.But this design violates the design of decentralized system.I think it is possible to design a system by using crypto currency, which makes it very costly for a result provider to provide a fake answer and ensure the reliability of the results.Instead of trusting another centralised institution that is now plausible.
  • scarellscarell Member Posts: 9
    it will be too costly, won't it?
Sign In or Register to comment.