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Data Validation Oracle

Definition

A data validation oracle is an external service or mechanism that provides verifiable real-world data to a blockchain, ensuring the accuracy and integrity of information used by smart contracts. It acts as a bridge between off-chain data sources and on-chain applications, critically confirming the authenticity of the data it supplies. This mechanism helps smart contracts execute based on reliable, tamper-proof external information. The oracle’s role is to prevent manipulation and maintain trust in automated agreements.