What Is ‘Data Sanitization’ in the Context of Oracle Feeds?

Data sanitization is the process of cleaning and validating raw price data received from external sources before it is used by the smart contract. This involves filtering out extreme outliers, checking for sudden, unrealistic price jumps, and ensuring the data format is correct.

The goal is to remove bad or malicious data points that could compromise the contract's financial logic. A decentralized oracle network typically performs this sanitization across its many nodes to achieve a consensus on a clean price.