# What Is the "Data Aggregation" Process in a Decentralized Oracle Network? ⎊ Path

**Published:** 2025-12-05
**Author:** Greeks.live
**Categories:** Path

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## What Is the “Data Aggregation” Process in a Decentralized Oracle Network?

Data aggregation is the process of collecting price data from multiple independent data providers and external sources. These individual data points are then combined and validated using a median, mean, or other statistical method to produce a single, robust, and tamper-resistant final price feed.

This redundancy and aggregation mitigate the risk of a single point of failure or a malicious individual provider.

- [How Does the Aggregation Mechanism Handle Conflicting or Outlier Data Reports from Multiple Nodes?](https://learn.greeks.live/path/how-does-the-aggregation-mechanism-handle-conflicting-or-outlier-data-reports-from-multiple-nodes/)

- [What Is “Data Aggregation” and Why Is It Vital for Oracle Price Feeds?](https://learn.greeks.live/path/what-is-data-aggregation-and-why-is-it-vital-for-oracle-price-feeds/)

- [How Does a Smart Contract Determine the ‘Correct’ Price from Multiple Oracle Sources?](https://learn.greeks.live/path/how-does-a-smart-contract-determine-the-correct-price-from-multiple-oracle-sources/)

- [How Is the ‘Median Price’ Sometimes Used as an Alternative to the Average in Indices?](https://learn.greeks.live/path/how-is-the-median-price-sometimes-used-as-an-alternative-to-the-average-in-indices/)

- [Does the Median Method Inherently Account for the Volume-Weighted Price of the Data Sources?](https://learn.greeks.live/path/does-the-median-method-inherently-account-for-the-volume-weighted-price-of-the-data-sources/)

- [Could a Coordinated Attack on Multiple Smaller Exchanges Create a False Median Price?](https://learn.greeks.live/path/could-a-coordinated-attack-on-multiple-smaller-exchanges-create-a-false-median-price/)

- [Why Is the Median Calculation (MWAP) Often Considered More Robust against Outliers than the Mean (TWAP)?](https://learn.greeks.live/path/why-is-the-median-calculation-mwap-often-considered-more-robust-against-outliers-than-the-mean-twap/)

- [How Does an Oracle Network Handle Conflicting Data Submissions from Different Nodes?](https://learn.greeks.live/path/how-does-an-oracle-network-handle-conflicting-data-submissions-from-different-nodes/)

## Glossar

### [Aggregation](https://learn.greeks.live/area/aggregation/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Process ⎊ Aggregation in financial markets involves collecting and combining data from multiple sources to form a single, representative value.

### [Independent Data Providers](https://learn.greeks.live/area/independent-data-providers/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Data ⎊ Independent Data Providers within cryptocurrency, options trading, and financial derivatives represent a critical shift towards disaggregated, verifiable market intelligence.

## Discover More

### [Could a Decentralized Autonomous Organization (DAO) Manage the Whistleblower Process?](https://learn.greeks.live/path/could-a-decentralized-autonomous-organization-dao-manage-the-whistleblower-process/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Could a Decentralized Autonomous Organization (DAO) Manage the Whistleblower Process?](https://learn.greeks.live/wp-content/uploads/2025/10/Layered-Algorithmic-Trading-Apparatus-Visualization-Illustrating-Decentralized-Finance-Staking-Yield-Curves.webp)

A DAO could manage parameters and appeals, but core slashing is protocol-deterministic.

### [How Does a TWAP Oracle Differ from a Volume-Weighted Average Price (VWAP) Oracle?](https://learn.greeks.live/path/how-does-a-twap-oracle-differ-from-a-volume-weighted-average-price-vwap-oracle/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a TWAP Oracle Differ from a Volume-Weighted Average Price (VWAP) Oracle?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Execution-in-Decentralized-Finance-Mechanism-Modeling-Through-Time-Locked-Derivatives.webp)

TWAP averages price over time, while VWAP averages price based on trading volume.

### [How Does a PoR Oracle Differ from a Standard Price Oracle?](https://learn.greeks.live/path/how-does-a-por-oracle-differ-from-a-standard-price-oracle/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a PoR Oracle Differ from a Standard Price Oracle?](https://learn.greeks.live/wp-content/uploads/2025/10/Ephemeral-Digital-Asset-Collateralization-Mechanism-Floating-Above-Darkened-Illiquid-Surface.webp)

Price oracles report dynamic market prices; PoR oracles report static, verifiable reserve quantities for solvency proof.

### [How Does a Decentralized Network Prove a Validator's Malicious Intent?](https://learn.greeks.live/path/how-does-a-decentralized-network-prove-a-validators-malicious-intent/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Decentralized Network Prove a Validator's Malicious Intent?](https://learn.greeks.live/wp-content/uploads/2025/10/Ergonomic-Cryptocurrency-Wallet-Interface-and-On-Chain-Derivative-Execution-Stylus-Mechanism.webp)

Cryptographic evidence of conflicting signed messages broadcast on the network.

### [What Is the Purpose of a Decentralized Exchange (DEX) in the Liquidation Process?](https://learn.greeks.live/path/what-is-the-purpose-of-a-decentralized-exchange-dex-in-the-liquidation-process/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Purpose of a Decentralized Exchange (DEX) in the Liquidation Process?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Derivatives-Protocol-Overlay-Abstract-Visualization-of-Quantum-Option-Pricing-Mechanics.webp)

To provide a transparent, on-chain market for selling liquidated collateral to cover the stablecoin debt.

### [How Does a Decentralized Oracle Network Prevent a Single Point of Failure?](https://learn.greeks.live/path/how-does-a-decentralized-oracle-network-prevent-a-single-point-of-failure/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Decentralized Oracle Network Prevent a Single Point of Failure?](https://learn.greeks.live/wp-content/uploads/2025/10/Symmetric-Quadrant-Deployment-Mechanism-Illustrating-Decentralized-Autonomous-Organization-Governance-Structure.webp)

By distributing data sourcing and validation across numerous independent nodes, the network ensures no single failure or malicious actor can compromise the data.

### [How Does a Decentralized Oracle Network (DON) Improve Data Security?](https://learn.greeks.live/path/how-does-a-decentralized-oracle-network-don-improve-data-security/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Decentralized Oracle Network (DON) Improve Data Security?](https://learn.greeks.live/wp-content/uploads/2025/10/Microelectromechanical-Systems-Probe-Interfacing-High-Reflectivity-Non-Fungible-Token-Storage-Substrate-Data-Extraction.webp)

Aggregates data from multiple independent nodes, making data manipulation extremely difficult and expensive.

### [Why Is the Median Often Preferred over the Average in Oracle Data Aggregation?](https://learn.greeks.live/path/why-is-the-median-often-preferred-over-the-average-in-oracle-data-aggregation/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Why Is the Median Often Preferred over the Average in Oracle Data Aggregation?](https://learn.greeks.live/wp-content/uploads/2025/10/Microscopic-Examination-of-Electromechanical-Actuator-Assembly-Interface-for-Decentralized-Finance-Protocol-Mechanics.webp)

The median is more resistant to outliers and manipulation than the average, providing a more robust and accurate market price.

### [How Does Data Aggregation Prevent "Front-Running" of Oracle Updates?](https://learn.greeks.live/path/how-does-data-aggregation-prevent-front-running-of-oracle-updates/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does Data Aggregation Prevent "Front-Running" of Oracle Updates?](https://learn.greeks.live/wp-content/uploads/2025/10/Conceptual-Visualization-of-Decentralized-Exchange-Automated-Market-Maker-Mechanism-Precision-and-Settlement-Finality.webp)

By making the final price non-deterministic until all data is submitted and often using commit-reveal schemes to hide individual node inputs.

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**Original URL:** https://learn.greeks.live/learn/what-is-the-data-aggregation-process-in-a-decentralized-oracle-network/
