Oracle
An oracle is a source of information that smart contracts can use to interact with the outside world. Oracles can impact the execution of smart contracts.
An oracle is a source of information that smart contracts can use to interact with the outside world. Oracles can impact the execution of smart contracts.
In the blockchain world, an oracle is a third-party service that provides smart contracts with external information. They serve as bridges between blockchains and the outside world. Blockchains and smart contracts cannot access off-chain data (data that is outside of the network) on their own, so oracles are used to provide this data to trigger smart contract executions when predefined conditions are met. This information can include price information, the outcome of an event, or other types of data. The reliability of smart contracts depends heavily on the reliability of the oracle providing the information.
For example, a smart contract for weather insurance might rely on an oracle to provide accurate weather data. If the temperature drops below a certain level, the smart contract automatically triggers a payment to the insured party
