Oracles
Systems connecting blockchains to real-world data.
Beginner-friendly explanation
Oracles are tools that bring external information to blockchains, which cannot access the internet directly. They allow, for example, a smart contract to know the real price of Bitcoin. Example: An oracle tells a contract that 1 BTC equals $30,000, triggering a payment.
Intermediate-level insight
Oracles can deliver prices, sports results, weather data, and more. They can be: centralized (single provider) or decentralized (oracle network). Example: Chainlink is a decentralized oracle network used by many DeFi applications.
Advanced perspective
The “oracle problem” is critical: if an oracle delivers wrong data, it can corrupt a smart contract. Systems like Proof of Reserve, multi-oracle consensus, or cryptography (TSS) are used to enhance reliability. Example: A DeFi protocol uses multiple oracles + a weighted average mechanism to prevent price manipulation.
NFT DEFI Web3
oracle, external data, price, blockchain, Chainlink, proof of reserve, TSS