Bitcoin.com
Download

What is a Blockchain Oracle?

In the blockchain world, an oracle is a system that connects smart contracts to external data sources. Smart contracts, self-executing agreements written in code, operate within the blockchain but cannot directly access off-chain information. Oracles act as bridges, providing the essential link between on-chain and off-chain data.
What is a Blockchain Oracle?
Use the multichain Bitcoin.com Wallet app, trusted by millions, to safely and easily explore cryptocurrencies, dApps, and DeFi, where oracles play a crucial role.

Table of Contents

  1. Why Are Blockchain Oracles Necessary?
  2. How Oracles Work: Connecting On-Chain and Off-Chain Data
  3. Types of Blockchain Oracles: A Diverse Landscape
  4. Benefits of Using Oracles: Expanding Smart Contract Capabilities
  5. Risks Associated with Oracles: Addressing Security Concerns
  6. Mitigating Oracle Risks: Best Practices
  7. The Future of Oracles: Enhancing Blockchain Interoperability
  8. Conclusion: Oracles as Essential Blockchain Infrastructure

Buy as little as $30 worth to get started

Buy as little as $30 worth to get started

Choose from Bitcoin, Bitcoin Cash, Ethereum, and more

Related guides

Start from here →
What's a smart contract?
What's a smart contract?

Get the basics on the "software" that runs on decentralized networks.

Read this article →
What's a smart contract?
What's a smart contract?

Get the basics on the "software" that runs on decentralized networks.

What is Ethereum?
What is Ethereum?

Understand Ethereum's key characteristics.

Read this article →
What is Ethereum?
What is Ethereum?

Understand Ethereum's key characteristics.

What is DeFi?
What is DeFi?

Learn what makes decentralized finance (DeFi) apps work and how they compare to traditional financial products.

Read this article →
What is DeFi?
What is DeFi?

Learn what makes decentralized finance (DeFi) apps work and how they compare to traditional financial products.

What is Chainlink?
What is Chainlink?

Chainlink bridges the gap between blockchains and real-world data, enabling smart contracts to interact with off-chain information and systems.

Read this article →
What is Chainlink?
What is Chainlink?

Chainlink bridges the gap between blockchains and real-world data, enabling smart contracts to interact with off-chain information and systems.

What is a Blockchain?
What is a Blockchain?

This beginner's guide explains blockchain, its importance in cryptocurrencies, and how it works. Explore its uses, advantages, and future potential.

Read this article →
What is a Blockchain?
What is a Blockchain?

This beginner's guide explains blockchain, its importance in cryptocurrencies, and how it works. Explore its uses, advantages, and future potential.

Bitcoin.com in your inbox

A weekly rundown of the news that matters, plus educational resources and updates on products & services that support economic freedom

Wallets
Start investing safely with the Bitcoin.com Wallet
Over wallets created so far

Everything you need to buy, sell, trade, and invest your Bitcoin and cryptocurrency securely

Download now