Skip to main content

What Are the Risks Associated with Relying on a Single Oracle?

Relying on a single Oracle creates a single point of failure, known as the "Oracle Problem." If the single data source is compromised, manipulated, or simply goes offline, the smart contract will execute incorrectly or fail to execute. This vulnerability can lead to significant financial loss for users whose derivative positions depend on that price feed.

It undermines the contract's trustless nature.

How Does the Concept of ‘Network Effect’ Protect a Coin from Manipulation?
Why Is a Single, Centralized Oracle Considered a Point of Failure for a DeFi Smart Contract?
What Is a ‘Data Integrity’ Issue for Oracles?
What Are the Risks Associated with a Centralized Crypto Exchange Acting as the CCP?