How Do Decentralized Oracle Networks Achieve Consensus on Price Data?
Decentralized oracle networks achieve consensus by aggregating price data from multiple independent sources, or data providers. These providers stake collateral to ensure the accuracy of their reported data.
The network then uses a weighted average or median to determine a single, reliable price feed. This multi-source, staking-based approach makes it economically infeasible for a single entity to corrupt the price.
Glossar
Oracle Data
Source ⎊ Oracle Data represents external, real-world information, such as asset prices, interest rates, or market volatility indices, that is securely and reliably fed into a blockchain's smart contracts.
Decentralized Oracle Networks
Architecture ⎊ Decentralized Oracle Networks (DONs) represent a robust infrastructure designed to provide reliable external data to smart contracts without relying on a single, centralized entity.
Decentralized Oracle
Attestation ⎊ Decentralized oracles fundamentally address the challenge of bridging off-chain data to on-chain smart contracts, providing a verifiable source of truth for derivative pricing and settlement.