A system that supplies on-chain smart contracts with trustworthy off-chain data.
An oracle bridges blockchains with real-world or off-chain information. Because blockchains can’t fetch external data directly, contracts rely on oracles to provide prices, event outcomes, or other verified facts.
"A DEX contract might read a BCH/USD rate from a price oracle to settle trades fairly."
Oracle designs vary from centralized feeds to decentralized networks of reporters. Robust systems use aggregation, staking, and cryptographic proofs to reduce manipulation risk.
"A decentralized oracle network aggregates multiple exchange prices and slashes reporters who submit outliers."
All terms and definitions may update as the Cryptionary improves.