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What is Oracle?

Crypto Glossary Definition

A service which allows for smart contracts to interact with data outside of the blockchain environment.

Why Oracle Matters

Blockchains can't natively access outside information like stock prices or sports scores — an oracle is the service that feeds real-world data into smart contracts so they can act on it. Oracle security is a well-known DeFi attack surface: manipulating the price feed an oracle reports has been the root cause of several major DeFi hacks.

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Related Crypto Terms

Open SourceSoftware that has its source code publicly available to modi…Open InterestThe number of contracts outstanding of a specific derivative…Optimistic RollupAn (ethereum) scaling solution, where transactions are aggre…Order BookA current list of buy and sell orders for a specific asset o…Orphaned BlockA valid block that is not part of the main chain. May occur …OTC (Over the Counter)An asset traded directly between two parties, and isn't tied…
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