What Role Do Oracles Play in the Execution of Smart Contracts?

Oracles are essential services that connect smart contracts to real-world data and events. Since blockchains are closed systems, they cannot access off-chain information on their own.

Oracles act as a bridge, feeding external data ▴ like stock prices, weather conditions, or election results ▴ to the smart contract. This data is crucial for triggering the contract's execution when its conditions are based on real-world outcomes.

Without oracles, the utility of smart contracts would be limited to on-chain events only.