Token Price Oracle

Definition ∞ A Token Price Oracle is a service that provides real-world data, such as asset prices, to smart contracts on a blockchain. Oracles act as bridges between off-chain information and on-chain applications, enabling smart contracts to execute based on external events. They are critical for the functionality of decentralized finance.
Context ∞ Token Price Oracles are a constant subject in cryptocurrency news, especially concerning the accuracy and reliability of decentralized finance (DeFi) protocols. Debates often focus on preventing data manipulation and ensuring the integrity of price feeds, as a compromised oracle can lead to significant financial losses for users.