What is Oracle & Price Feed?
What are Oracles and Price Feeds?
An oracle plays a crucial role by serving as a bridge between blockchain smart contracts and external data sources. These tools are essential because smart contracts, by design, cannot access or interact with data outside of their native blockchain. Oracles provide a solution to this limitation by fetching data from the outside world and feeding it into the blockchain, enabling smart contracts to execute based on real-world information.
Price feeds are a subset of the Oracles, in which price data is posted to the blockchain by an Oracle.
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