How Are Oracles Used to Settle Binary Options Contracts? ▴ Learn

How Are Oracles Used to Settle Binary Options Contracts?

Binary options contracts are settled based on a simple 'yes' or 'no' outcome of a future event. Oracles are used to definitively report whether the condition specified in the contract was met.

For example, an oracle reports if the BTC price is above a certain threshold at a specific time. The oracle's verifiable data submission triggers the smart contract to pay out the winner and close the contract, automating the settlement process.

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