Oracles

May 16, 2023 • 11 Min Read

The Oracle Problem

One of the major issues with blockchain technology and smart contracts is the inability to naturally connect to external data sources. As most world data remains off-chain, blockchain networks are facing an uphill battle in generating real-world applications. The second part of the problem is blockchains need to be able to trust the validity of off-chain data and know it hasn’t been tampered with.

Oracles alleviate the oracle problem by bridging the gap between the off-chain and on-chain worlds. Put differently, Oracles are digital entities tha...

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Illustrations by Karl Wimer.