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Why Is a Single, Centralized Oracle a Potential Point of Failure?

It creates a single point of attack or failure, allowing manipulated data to trigger incorrect, irreversible smart contract execution.
Greeks.Live06.11.25

Why Is a Single, Centralized Oracle a Potential Point of Failure?

A single, centralized oracle creates a bottleneck where a smart contract's execution relies entirely on one external data source. If that oracle is compromised, malfunctions, or provides manipulated data, the smart contract could execute incorrectly, leading to financial loss.

This defeats the purpose of decentralization and trustlessness.

How Can a Malicious Oracle Attack a Derivatives Platform?
How Does the Oracle Problem Specifically Impact Decentralized Options Trading Platforms?
What Is a ‘Data Integrity’ Issue for Oracles?
What Are the Risks Associated with Relying on a Single Oracle?

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