What is Oracle?
A service that supplies real-world data to smart contracts.
Details
An oracle feeds real-world data such as prices, weather or event outcomes into smart contracts; DeFi liquidations, lending and derivatives pricing all depend on it. If an oracle's data source is manipulated, it can trigger cascading liquidations and heavy losses. That is why leading DeFi protocols use decentralized oracle networks such as Chainlink to reduce single points of failure.
Key Points
- Supply off-chain data to smart contracts
- Manipulated feeds can trigger liquidations and losses
- Decentralized oracle networks reduce single points of failure
FAQ
What is Oracle?
A service that supplies real-world data to smart contracts.
What are the key points about Oracle?
An oracle feeds real-world data such as prices, weather or event outcomes into smart contracts; DeFi liquidations, lending and derivatives pricing all depend on it. If an oracle's data source is manipulated, it can trigger cascading liquidations and heavy losses. That is why leading DeFi protocols use decentralized oracle networks such as Chainlink to reduce single points of failure.
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