Oracle

Oracles serve as third-party information service providers that supply real-world data to blockchain protocols, including smart contracts. Oracles play a crucial role in securing and verifying the validity of external data used by blockchain networks. They bridge the gap between closed blockchain systems and real-world information, enhancing the capabilities and trustworthiness of blockchain applications. Oracles can be decentralized, relying on multiple data sources, or centralized, controlled by a single entity. In decentralized finance (DeFi), blockchain-based oracles are widely used to provide price and data feeds necessary for the execution of trustless smart contracts.