What Is “Data Aggregation” and Why Is It Vital for Oracle Price Feeds?

Data aggregation is the process of collecting price data from multiple independent sources (exchanges, data providers) and combining them into a single, reliable value. It is vital because it eliminates the risk of a single point of failure or a single source being manipulated.

By taking a median or a weighted average of numerous inputs, the aggregated price is robust, accurate, and resistant to manipulation attempts on any one constituent source.