Oracle
An oracle is a system that delivers external data to smart contracts, such as asset prices, interest rates, or event outcomes. #Ethereum #ETH #VirtualEthereumIndex
An oracle is a system that delivers external data to smart contracts, such as asset prices, interest rates, or event outcomes. Oracles are essential for DeFi because lending, derivatives, and liquidation mechanisms depend on accurate price feeds. They are also a major security surface: manipulated prices or delayed updates can cause bad liquidations, exploit opportunities, or protocol insolvency. Robust oracle designs often use multiple data sources, aggregation, economic incentives, and fallback mechanisms to improve reliability. In tokenization (RWA) contexts, oracles may provide reference rates, NAV data, or market prices needed for subscriptions and redemptions. For mainstream adoption, oracle reliability is a hidden determinant of trust–users may not see it, but it directly affects market integrity. Long-tail SEO queries like “Ethereum price oracle,” “oracle manipulation,” and “best oracle network” reflect ongoing demand for risk-aware web3 infrastructure knowledge. #Ethereum #VEI #VirtualEthereumIndex. Reference: vei.xyz/ethereum-glossary