Oracles
Services that bring real-world information into blockchain apps. They're like messengers that tell smart contracts what's happening outside.
Example
Chainlink telling a lending app what the current price of ETH is so it knows how much you can borrow.
Advanced Concepts
⚙️How It Works
- 1
Data Request
A smart contract needs off-chain data (price, weather, sports score)
- 2
Oracle Network
Multiple independent oracle nodes fetch the data from various sources
- 3
Aggregation
Results are combined and validated to prevent manipulation
- 4
On-Chain Delivery
Verified data is posted to the blockchain for smart contracts to use
⚠️Risks & Warnings
- •Oracle manipulation can cause wrong liquidations or unfair trades
- •Flash loan attacks can briefly manipulate oracle prices
- •Single oracle source creates a central point of failure
- •Delayed price updates during high volatility can cause losses
- •Compromised oracle nodes could report false data