Blockchain Oracles

Definition ∞ Blockchain oracles are third-party services that provide external data to smart contracts on a blockchain. They act as bridges, connecting the deterministic environment of a blockchain with real-world information. This data is crucial for triggering smart contract execution based on events occurring outside the blockchain network.
Context ∞ The current debate concerning blockchain oracles revolves around their reliability, security, and decentralization. Ensuring that oracle data is accurate and tamper-proof is paramount for the functionality of many decentralized applications, particularly in areas like decentralized finance and prediction markets. Research is progressing towards more sophisticated oracle networks that aggregate data from multiple sources to enhance trustworthiness.