Why Is Data Security Crucial for Oracles?
Data security is crucial because a smart contract's execution is entirely dependent on the data provided by the Oracle. If the Oracle feeds incorrect, manipulated, or outdated data, the smart contract will execute incorrectly, potentially leading to significant financial losses or contract failure.
A compromised Oracle is a single point of failure.
Glossar
Decentralized Oracle Networks
Architecture ⎊ Decentralized Oracle Networks (DONs) represent a robust infrastructure designed to provide reliable external data to smart contracts without relying on a single, centralized entity.
Data Security
Cryptography ⎊ Data security within cryptocurrency, options trading, and financial derivatives fundamentally relies on cryptographic protocols, ensuring the integrity and confidentiality of transactions and data at rest.