Real-World Data

Definition ∞ Real-world data refers to information originating from sources outside of a blockchain or distributed ledger system. This data, which can include stock prices, weather conditions, or sports scores, is essential for smart contracts to execute based on external events. Securely and accurately feeding this data onto the blockchain is a primary function of oracle services.
Context ∞ The current relevance of real-world data in the blockchain space is growing with the expansion of decentralized finance (DeFi) and the development of sophisticated smart contract applications. Discussions often focus on the reliability, tamper-resistance, and cost of acquiring and delivering this data. Key areas of development include advancements in decentralized oracle networks and the establishment of robust data verification mechanisms.