Oracle
An oracle is a service that feeds external, real-world data to blockchain smart contracts. Prices, weather, sports scores—anything the blockchain can't access natively.
Understanding the Concept
Blockchains are isolated systems. Smart contracts can't check ETH's price, verify election results, or access any external data on their own. Oracles bridge this gap. Chainlink is the dominant oracle network—it powers most of DeFi's price feeds. If oracles fail or get manipulated, it's catastrophic. Flash loan attacks often exploit oracle price manipulation. When evaluating DeFi protocols, check their oracle setup. Multiple sources, time-weighted prices, and decentralized oracle networks are best. Single-source oracles are attack vectors.
Real-World Example
Aave needs to know ETH's price to calculate if your loan is healthy. It queries Chainlink's ETH/USD oracle, which aggregates prices from many exchanges. If ETH drops below your liquidation threshold, the oracle data triggers liquidation.
How Strykr Helps
Strykr tracks Oracle developments across the crypto ecosystem. Our AI provides real-time insights and alerts to help you navigate the market with confidence.
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