Oracle

Oracles verify claims regarding the state of world. Acting as gateways for smart contracts to obtain the inputs needed to execute their instructions.

Introduction

Oracles ingest data feeds from external systems providing the inputs to smart contracts required for evaluating their parameters. Multiple external systems are accessed to arrive at a single “truth”. Ensuring the robustness of information smart contracts are acting upon given the irreversibility of their execution.

Functioning as a bridge for blockchains to interact with external parties without compromising their security or censorship resistance. By controlling the inputs smart contracts see, reducing their interaction with the outside world and exposure to its various threats.

This provides Oracles with power over smart contract outcomes. If an Oracle is compromised. Smart contracts depending on it are too.

Decentralized Oracles are designed to systematically ingest trustless off-chain inputs from multiple parties to verify the results of events. Employing an incentive structure designed to incentivize honest reporting by these parties.

Further Oracle Reading

Oracles and Blockchain: DeFi Oracles Examined