What Is a Decentralized Oracle Network and How Does It Mitigate Single-Point-of-Failure Risk?
A decentralized Oracle network sources data from multiple independent nodes and aggregates them to provide a robust, tamper-proof price feed to smart contracts. This redundancy mitigates the risk of a single node being compromised or failing, ensuring the data used for derivative settlement is accurate and resistant to manipulation.
Glossar
Decentralized Oracle
Attestation ⎊ Decentralized oracles fundamentally address the challenge of bridging off-chain data to on-chain smart contracts, providing a verifiable source of truth for derivative pricing and settlement.
Decentralized Oracle Network
Network ⎊ A Decentralized Oracle Network (DON) facilitates secure and verifiable data feeds from external sources to blockchain environments, crucial for smart contract functionality within cryptocurrency derivatives and options trading.
Oracle Network
Infrastructure ⎊ This refers to the decentralized network of nodes responsible for securely fetching, aggregating, and broadcasting external market data necessary for derivative pricing and settlement.