Data-Driven Layer

Definition ∞ A data-driven layer in blockchain architecture utilizes external information to influence on-chain operations. This layer typically involves oracles or other data feeds that bring real-world data, such as asset prices or event outcomes, onto the blockchain. It allows smart contracts to react to conditions beyond their immediate ledger state, thereby extending their utility. The accuracy and reliability of this external data are critical for the correct execution of decentralized applications.
Context ∞ The reliability of data-driven layers is a constant focus for blockchain security and functionality, particularly concerning oracle manipulation risks. Efforts are directed toward developing more decentralized and robust oracle networks to ensure data integrity. Future progress will likely involve more sophisticated aggregation and validation methods for off-chain information.