What Role Does an Oracle Play in a Smart Contract’s Execution?
An oracle is a third-party service that provides smart contracts with external, real-world data, as blockchains cannot access this information natively. This data, such as price feeds, weather reports, or the outcome of an event, is crucial for executing the contract's terms.
Oracles act as a bridge, securely bringing off-chain information onto the blockchain.
Glossar
Oracle
Revelation ⎊ Within cryptocurrency derivatives and options trading, an Oracle functions as a crucial bridge, connecting on-chain smart contracts to external, real-world data feeds.
Off-Chain Information
Source ⎊ Off-chain information refers to data that exists outside the blockchain network, originating from traditional financial markets, APIs, or real-world events.