How Does Using Multiple, Independent Data Sources Enhance Oracle Data Integrity?
By sourcing data from many different, unrelated exchanges and providers, the oracle system minimizes the impact of a single compromised source. This redundancy makes it significantly harder for an attacker to manipulate the final price feed.
The system can compare the inputs and discard outliers, ensuring the smart contract receives a robust, aggregated, and verifiable price.
Glossar
Data Source
Origin ⎊ A data source, within cryptocurrency, options trading, and financial derivatives, represents the foundational point of information ingestion for quantitative models and trading systems.
Oracle Data
Source ⎊ Oracle Data represents external, real-world information, such as asset prices, interest rates, or market volatility indices, that is securely and reliably fed into a blockchain's smart contracts.
Data
Volatility ⎊ Data within cryptocurrency, options trading, and financial derivatives represents the quantified degree of price fluctuation over a defined period, serving as a critical input for option pricing models and risk assessment.
Independent Data Sources
Provenance ⎊ Tracing the origin and history of every data point used in derivative pricing is fundamental for establishing accountability and auditability within decentralized systems.