Why Can't Smart Contracts Access External Data Directly? ⎊ Path

Why Can’t Smart Contracts Access External Data Directly?

Smart contracts, by design, are deterministic and operate in an isolated environment on the blockchain. They cannot initiate external network requests (API calls) because this would introduce non-determinism, meaning different nodes could receive different data and reach different consensus outcomes.

Oracles are necessary as a secure, verified intermediary to feed this external data onto the chain.

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Glossar

Smart Contracts

Function ⎊ Smart contracts are self-executing agreements with the terms of the agreement directly written into lines of code, residing on a decentralized ledger.

External Data

Source ⎊ External Data, in the context of crypto derivatives, refers to information originating outside the native blockchain environment, which is essential for determining the value or triggering the settlement of a smart contract.