How Does a Multi-Source Oracle Architecture Mitigate Single-Point Risk?

A multi-source oracle architecture mitigates single-point risk by requiring the smart contract to receive price data from several different, independent data providers. The contract then aggregates these values, often by taking the median or a weighted average.

If one data source is compromised or fails, the remaining valid sources ensure that the aggregated price remains accurate, preventing the entire system from being corrupted by a single bad data point.