Oracle

An oracle is a service that connects blockchain smart contracts with external, real-world data. Since blockchains cannot natively access information outside their own network, oracles act as a bridge, feeding data such as asset prices, weather conditions, sports results, or API responses into smart contracts. This external data allows smart contracts to execute based on real-world events. Decentralized oracle networks like Chainlink help reduce the risk of relying on a single data source.