Word of the Day : January 5, 2021

Oracles

According to the context an oracle can be defined in multiple ways. In the context of crypto, oracles refers to services which verify and provide reliable data to smart contracts. Smart contracts are hungry for data. Therefore, oracles are needed for decentralized programmes to function without having a weak spot that can be easily manipulated.

On the other hand, oracles have an enormous power over smart contracts this is known as the Oracle Problem.

Blockchain oracles may be classified according to their use case. The most common types are:

• Consensus Oracles
• Hardware Oracles
• Software Oracles
• Inbound Oracles
• Outbound Oracles