How Do Different Blockchain Network Congestion Levels Impact Oracle Update Frequency?
High network congestion leads to higher gas prices, which increases the cost of submitting an oracle update transaction. If the cost exceeds the oracle node's reward or internal gas budget, the node may delay or skip the update, leading to stale prices.
Conversely, low congestion allows for frequent, low-cost updates, ensuring price freshness.
Glossar
Oracle Update
Data ⎊ An oracle update refers to the process where external price data is refreshed and transmitted to a smart contract, enabling accurate valuation of financial derivatives.
Blockchain Network Congestion
Network ⎊ Blockchain network congestion, within cryptocurrency, options trading, and financial derivatives, represents a state of diminished throughput and elevated transaction costs stemming from excessive demand relative to the network's processing capacity.