Overview
An oracle network is a decentralized network of node operators that supplies reliable price and data feeds to smart contracts. It aggregates data from multiple sources to resist manipulation. Chainlink is the leading example.
How It Works
Node operators fetch data from independent sources, aggregate the values, and publish them on-chain. Reputation and staking align node behavior. Smart contracts read these feeds for pricing, lending, and derivatives.
Why It Matters
Oracle networks provide the trustworthy external data that DeFi depends on. Their decentralization reduces the risk of single-point manipulation. They are critical infrastructure for the entire ecosystem.
Related Concepts
Oracle networks build on Oracles and connect to DeFi, Chainlink, and data feeds. They underpin Lending and Derivatives pricing.