@brynncliff
Oracles are third-party services that provide external data to smart contracts on blockchain networks, enabling them to interact with real-world events. Since blockchains are inherently isolated from external data sources, oracles bridge this gap by fetching off-chain information like stock prices, weather conditions, or sports scores. For example, a smart contract for a decentralized insurance product could use an oracle to verify if a flight was delayed and trigger compensation automatically. Oracles are crucial for enabling complex decentralized applications (dApps) that require real-world information. However, they introduce a potential vulnerability, as a compromised oracle could manipulate the data and affect the contract’s outcome. Therefore, the reliability and security of oracles are essential.
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