Definition ∞ Decentralized aggregation combines data or services from multiple independent sources without relying on a central authority. This process often occurs on blockchain networks, where smart contracts or protocols collect and consolidate information from various participants or data providers. It aims to achieve greater data accuracy, censorship resistance, and improved efficiency compared to centralized counterparts. Examples include price oracles gathering data from numerous exchanges.
Context ∞ The utility of decentralized aggregation is growing within DeFi for applications like lending protocols, derivatives, and stablecoins, which require reliable external data. Debates often involve the trade-offs between data freshness, cost, and the number of contributing sources needed for sufficient decentralization. Future developments will likely focus on optimizing data verification and scaling these aggregation mechanisms across diverse blockchain environments.
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