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What Is an “Oracle” and Why Is It Essential for a Smart Contract Derivative?

Off-chain data → On-chain. Price feed → execution trigger. 100% security ≠ data manipulation.
Greeks.Live29.10.25

What Is an “Oracle” and Why Is It Essential for a Smart Contract Derivative?

An oracle is a third-party service that securely feeds external, real-world data, such as asset prices, into a smart contract. It is essential because smart contracts on their own cannot access off-chain data.

For a derivative, the oracle provides the market price needed to determine if and when the contract should execute and settle the payoff.

Can an Oracle Be Used to Trigger a Margin Call in a Decentralized Lending Smart Contract?
How Does a “Proof-of-Stake” Mechanism Secure Data Integrity for an Oracle?
If a Position Has 50x Leverage, What Percentage Price Change Will Result in a 100 Percent Loss of the Margin?
Why Is a Single, Centralized Oracle Considered a Security Risk for a DeFi Derivative?

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