#Did_You_Know
What is Oracle technology in the world of crypto? 🤔
📋 Smart contracts on the blockchain are powerful, but they face a vulnerability ❌
🚫 They cannot access external world data on their own!
This is where Oracle technology comes in! 🗝️
An oracle is the bridge that connects the blockchain to the real world, providing smart contracts with external information.
💡 A simple example:
Imagine a smart contract programmed to reward you if the price of Bitcoin exceeds $100,000.
But how does the contract know the current price? 🤷♂️
This is where the hero Oracle intervenes and relays the data from trusted external sources like Binance or CoinMarketCap.
🔍 Uses of Oracles:
✅ Fetching currency and stock prices.
✅ Providing match results for betting contracts.
✅ Inputting weather data or news.
✅ Any information outside the blockchain that smart contracts need.
🏆 Prominent Oracle projects in crypto:
1️⃣ Chainlink ($LINK )
2️⃣ Band Protocol ($BAND )
3️⃣ $API3
💬 In summary:
Without oracles, the blockchain remains isolated from reality.
With oracles, smart contracts become smarter and more interactive with the world! 🚀
CMX Academy 🎓