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What Are the Risks of Using a Small Number of Oracle Nodes for a Price Feed?

Fewer Nodes $Rightarrow$ Collusion Risk $uparrow +$ Downtime Risk $uparrow$ (Centralization Vulnerability)
Greeks.Live20.11.25

What Are the Risks of Using a Small Number of Oracle Nodes for a Price Feed?

A small number of nodes increases the risk of a 51% attack (collusion) because an attacker only needs to compromise a few nodes to control the majority of the reported data. It also increases the risk of a single point of failure if a few nodes go offline.

Decentralization is directly proportional to the number of independent, high-quality nodes.

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