What exactly is Web3? 11 Blockchain Oracle
Oracles provide a way for the decentralized Web3 ecosystem to access existing data sources, legacy systems, and advanced computations. Decentralized oracle networks (DONs) enable the creation of hybrid smart contracts, where on-chain code and off-chain infrastructure are combined to support advanced decentralized applications (dApps) that react to real-world events and interoperate with traditional systems.
For example, let’s assume Alice and Bob want to bet on the outcome of a sports match. Alice bets $20 on team A and Bob bets $20 on team B, with the $40 total held in escrow by a smart contract. When the game ends, how does the smart contract know whether to release the funds to Alice or Bob? The answer is it requires an oracle mechanism to fetch accurate match outcomes off-chain and deliver it to the blockchain in a secure and reliable manner.
One of the leading prophecy machines is Chainlink, a network of decentralized blockchain prophecy machines built on ethereum.
Chainlink is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. Smart contracts are pre-specified agreements on the blockchain that evaluate information and automatically execute when certain conditions are met. LINK tokens are the digital asset token used to pay for services on the network.