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What Is the Difference between a Centralized and a Decentralized Oracle?

Centralized oracles have a single point of failure; decentralized oracles use a network of nodes for secure, consensus-based data.
Greeks.Live06.11.25

What Is the Difference between a Centralized and a Decentralized Oracle?

A centralized oracle relies on a single entity to source and provide data to the smart contract, creating a single point of failure and potential manipulation. A decentralized oracle network (DON) uses multiple independent nodes that aggregate data from various sources.

This redundancy and consensus mechanism makes the data feed more secure, reliable, and resistant to malicious attacks or downtime.

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