Skip to content

What is a Blockchain Oracle?

A third-party service that provides smart contracts with external information.

Key details

Data Feed
Provides real-world data to on-chain smart contracts.
Crucial for DeFi
Many DeFi applications rely on oracles for price feeds.
Types
Include software oracles, hardware oracles, consensus-based oracles, etc.
Oracle Problem
The challenge of ensuring the reliability and trustworthiness of external data.

Examples

  1. 01Chainlink's decentralized oracle networks providing price data to DeFi protocols.
  2. 02MakerDAO's use of oracles to determine the price of ETH for CDP liquidations.
  3. 03Sports betting dApps using oracles to fetch real-world game results.