How Does Staking Collateral Improve the Security of a Decentralized Oracle?

Staking requires oracle nodes to lock up a certain amount of cryptocurrency as collateral before they can provide data. This collateral acts as a financial incentive for honest behavior.

If a node submits malicious or incorrect data, its staked collateral is 'slashed' (taken away). This mechanism imposes a direct financial penalty for dishonesty, making the cost of attacking the network prohibitively high.