Understanding oracles
In Chapter 3, Decentralized Finance, and Chapter 4, EVM-Compatible Blockchain Networks, we briefly discussed blockchain oracles. They are middleware that connects on-chain smart contracts with off-chain real-world data by providing external information. A blockchain oracle triggers smart contract execution when certain predefined rules and conditions in the contract are met.
Oracles enable smart contracts to interact with real-world data and systems that exist outside the blockchain network. They serve as trusted sources of information, bringing in data such as market prices, weather conditions, stock prices, sports scores, and more.
In the upcoming section, we will explore various examples of blockchain oracles and how they enhance the functionality and capabilities of smart contracts. These examples will highlight the practical applications and the value that oracles bring to blockchain-based systems. Let’s delve into the exciting world of blockchain...
