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What Is the “Oracle Problem” in Blockchain Development?

The oracle problem is the challenge of securely feeding external data to a smart contract without compromising its trustless security, as a bad feed causes incorrect execution.
Greeks.Live09.11.25

What Is the “Oracle Problem” in Blockchain Development?

The oracle problem is the challenge of securely and reliably feeding external, off-chain data into a deterministic smart contract without compromising the contract's trustless and immutable nature. Since smart contracts cannot natively access external data, they must rely on oracles.

If the oracle provides incorrect or manipulated data, the smart contract will execute incorrectly, leading to potential financial loss or protocol failure.

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