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Oracle Protocols: Bridging the Gap Between Blockchain and the Real World

Published 05/22/2024, 08:44 PM
Updated 05/22/2024, 09:15 PM
© Reuters.  Oracle Protocols: Bridging the Gap Between Blockchain and the Real World

  • Oracle protocols bridge the gap between blockchain and real-world data, enhancing the functionality of decentralized applications.
  • Flare Network integrates Oracle capabilities directly into its blockchain, providing a robust environment for advanced smart contracts.
  • Arthur Hayes highlights the competition among leading oracle protocols, noting Flare’s potential to revolutionize the industry.

Blockchain technology, known for its decentralized nature, thrives on accurate and reliable data. However, to fully leverage its potential, blockchain applications require information from the real world—data typically not available on the blockchain itself. Oracle protocols provide a solution to this challenge, acting as the critical link between off-chain and on-chain data.

What Are Oracle Protocols?

Oracle protocols are specialized software systems that serve as intermediaries between blockchain networks and external data sources. They enable blockchain applications to utilize real-world data, which is essential for decentralized applications (dApps) to operate effectively. Without oracles, blockchains would remain isolated and unable to access external informatio…

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