What Is the Role of a “Data Provider” in a Decentralized Oracle Network?

A data provider is a source of high-quality, real-world data (like market prices) that is consumed by the oracle nodes. They are typically professional data firms or high-volume exchanges.

In a DON, multiple independent data providers supply their data to ensure diversity and accuracy. The oracle nodes aggregate and validate this data to produce a single, reliable on-chain price feed.