Why Is a Time-Stamped Oracle Data Feed Important for Options Expiration?
A time-stamped Oracle data feed is vital because options contracts have a precise expiration time. The smart contract must execute the settlement based on the asset's price at that exact moment.
The timestamp provides cryptographic proof of when the price was recorded, ensuring the contract is executed based on the correct, final data point, preventing disputes over the expiration price.
Glossar
Oracle Data Feed
Function ⎊ An oracle data feed provides external, real-world data to smart contracts on a blockchain, enabling decentralized applications to interact with off-chain information.
Oracle Data
Source ⎊ Oracle Data represents external, real-world information, such as asset prices, interest rates, or market volatility indices, that is securely and reliably fed into a blockchain's smart contracts.
Cryptographic Proof
Attestation ⎊ Cryptographic proof, within cryptocurrency and derivative markets, functions as verifiable evidence of state transitions or computational integrity, crucial for trustless systems.