How Is the Integrity and Authenticity of Oracle Data Verified by the Smart Contract?

The smart contract verifies integrity through cryptographic proofs. Oracles often use techniques like authenticated data feeds or cryptographic signatures to prove the data originated from a trusted source and has not been tampered with.

In a Decentralized Oracle Network, the smart contract waits for multiple signatures or a consensus from the Oracle nodes. This cryptographic verification ensures the data's authenticity before it is used to execute the financial derivative's settlement logic.