Blockchain Oracles - Introduction - Part 2

Oracles are used to get data from real world to the smart contracts on blockchain.

Problem Statement

Smart contracts are unable to connect to external systems, data feeds, APIs, existing payment systems or any other off-chain resources on their own


Chainlink tries to solve this problem using Oracles.

Blockchain Oracle Definition: Any device that interacts with off-chain world to provide data to smart contracts. They report the result of that data on-chain so that the blockchain can stay deterministic.

They can also send the data to off-chain

Read more: https://chain.link/education/blockchain-oracles

Oracle smart contract and the off-chain server (chainlink node) are combined to form an Oracle


Centralized Oracles are Point of Failure

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