How Do Decentralized Oracle Networks (DONs) Improve upon Centralized Oracle Solutions?
Decentralized Oracle Networks (DONs) improve upon centralized solutions by eliminating the single point of failure. Instead of relying on one entity, a DON sources its data from a wide network of independent, geographically distributed nodes.
This decentralization makes the data feed more resilient to censorship, downtime, and manipulation. By aggregating data from multiple sources and using consensus mechanisms, DONs can provide a single, highly reliable and accurate data point to the smart contract, enhancing the overall security and trustworthiness of the DeFi application.