An oracle provides external data to smart contracts, such as prices, rates, or real-world information.
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Short definition
Oracle is an oracle provides external data to smart contracts, such as prices, rates, or real-world information.
Simple explanation
Smart contracts cannot naturally know off-chain data, so oracles help bring outside information on-chain.
Why it matters
Oracle design matters for DeFi pricing, lending, liquidation, derivatives, and security.
Example context
A lending protocol may use price oracle data to determine collateral value.