๐งต Curious about oracles in Web3? Let's unravel the mysteries together! ๐โจ
This thread will explore the fascinating world of oracles and their role in the decentralized web. Join me for an enlightening journey!
๐จ Important note:
โข Hybrid smart contract: It refers to a smart contract that merges off-chain data with on-chain computation.
Oracles are groups of nodes that are burdened with the responsibility to bring verifiable off-chain data. They are nodes of the network, like nodes of the @chainlink. They are incentivized with the native protocol token(i.e. @chainlink rewards her Oracles with the LINK token)
If you want your smart contract to access ETH/USD price or trigger functions based on specific conditions, you need oracles. Oracles enable interaction with off-chain data, bridging the gap between the blockchain and real-world information.
An oracle is like a bridge between the blockchain and the outside world. It fetches real-world data and provides it to the smart contract. Think of it as a trusted messenger bringing real-time information to the blockchain.
Oracles enable smart contracts to interact with and respond to real-world events and data. They create a more interconnected and versatile ecosystem, where blockchain applications can seamlessly integrate with our day-to-day lives. ๐๐ก
By leveraging oracles, smart contracts can do incredible things. They can trigger transactions based on stock market prices, and bring a Verifiable random number, The possibilities are endless ๐โก๏ธ.
A smart contract that uses off-chain data in combination with on-chain computation is called a โ "Hybrid smart contract"โ
However, it is crucial to select trustworthy oracles to ensure the accuracy and security of the data. The integrity of the oracle is of utmost importance, as it holds the power to influence smart contract actions. ๐ก๏ธ๐
So, next time you come across the term "oracle" in the Web3 space, remember that it's like a messenger connecting blockchains with the real world. It enables smart contracts to make decisions based on real-time information. ๐ฒ๐
I hope this explanation helps you understand the meaning of Oracles. If you have any questions, feel free to ask. Stay curious and keep exploring the exciting world of blockchain technology! ๐โจ