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What Is the ‘Oracle Problem’ in Blockchain Technology?

The oracle problem is the challenge of securely and reliably feeding off-chain data into a decentralized smart contract without reintroducing centralization.
Greeks.Live07.11.25

What Is the ‘Oracle Problem’ in Blockchain Technology?

The oracle problem refers to the challenge of getting accurate, reliable, and trustworthy external data into a deterministic, closed-loop blockchain environment. Since smart contracts cannot natively access off-chain data, relying on a single, centralized data source (an oracle) introduces a single point of failure, undermining the contract's decentralized nature.

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