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What Is the ‘Oracle Problem’ in Decentralized Finance?

The Oracle Problem is the challenge of securely and reliably feeding external, off-chain data into a trustless, on-chain smart contract. If the external data is incorrect, manipulated, or unavailable, the smart contract's execution will be flawed, potentially leading to incorrect settlement and financial loss.

The contract's security is only as strong as its Oracle feed.

What Role Do Oracles Play in Providing Reliable Market Data to Smart Contracts for Options Trading?
What Is the “Oracle Problem” in the Context of Smart Contract Security?
What Is the “Oracle Problem” in Smart Contract Execution?
What Role Does an Oracle Play in a Smart Contract’s Execution?