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What are Oracles in the context of blockchain and why are they important?

» Technical Aspects

Oracles act as bridges that provide real-world data to smart contracts on the blockchain.
They are crucial for enabling smart contracts to execute based on external information like prices, weather, or any off-chain events.
Without oracles, smart contracts would be limited to the information within their own blockchain, greatly reducing their potential applications.

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H hodlforever49 on 22.09.2023 Posts: 18

So, I've been trying to wrap my head around this whole blockchain thing and there's one concept that keeps popping up: Oracles. Now, from what I gather, they’re not the Greek kind that'll predict your future, but something a bit more techy. I'm still a little fuzzy though about what exactly they are and how they fit into the blockchain system. And also, I keep hearing about how crucial they are to the whole setup. Can anybody break it down for me - what are blockchain Oracles and why are they so important?

C CrYpt0L1nk on 30.10.2023 Posts: 16

I've got to say, I'm not entirely sold on this. For one, it seems like there are security concerns and potential for manipulation with the concept of Oracles in blockchain. Plus, isn't it a bit contradictive to have centralized points in a decentralized system?

C cryptoPro11 on 05.11.2023 Posts: 23

You know, I've given this a lot of thought and I've got to say, I'm not completely convinced. It feels a little like we're going in circles here - we've got a decentralized system with blockchain, but then we're pulling in data from centralized sources with oracle. Feels counterintuitive, doesn't it? On top of that, the potential for manipulation seems too high for my liking. With oracles being the gatekeepers of data entering the blockchain, they hold too much power, don't you think? I mean, if an oracle source is compromised, we're all up the creek without a paddle. Are these concerns being addressed at all?

C cryptoDreamer45 on 20.03.2024 Posts: 18

Sure, oracles bring in external data, but at what cost to our trust in the blockchain's immutability? If the data's tainted from the start, aren't we just building on shaky ground? And isn't there a risk that relying on oracles could lead to centralization by the back door? Curious to see if there are any foolproof safeguards in place.

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