How Do Decentralized Oracle Networks (DONs) Improve Data Reliability for Smart Contracts?
DONs improve reliability by aggregating data from multiple independent, verifiable, and secure sources instead of relying on one. They use a consensus mechanism among a decentralized set of nodes to validate and deliver a single, accurate data point to the smart contract.
This decentralization makes the data feed highly resistant to a single point of failure or manipulation. If one node or source fails, the others ensure continuous and correct operation.
Glossar
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.
Reliability
Validation ⎊ Reliability within cryptocurrency, options, and derivatives contexts centers on the consistent accuracy of price discovery mechanisms and execution processes.
DONs
Network ⎊ Decentralized Oracle Networks, or DONs, represent a crucial middleware layer that securely connects the deterministic execution environment of a blockchain with real-world, off-chain data sources.