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Difference between revisions of "The oracle problem"
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To overcome this lack of connectivity with the outside world, hybrid smart contracts use [[Oracle|oracles]] as middleware to retrieve external data inputs, push data outputs to external systems, and perform scalable [[off-chain]] computations. Not only do [[Oracle|oracles]] serve as a two-way bridge between [[Smart contract|smart contracts]] and the outside world, but they also provide a security framework for protecting against any single point of failure such as data manipulation and downtime. | To overcome this lack of connectivity with the outside world, hybrid smart contracts use [[Oracle|oracles]] as middleware to retrieve external data inputs, push data outputs to external systems, and perform scalable [[off-chain]] computations. Not only do [[Oracle|oracles]] serve as a two-way bridge between [[Smart contract|smart contracts]] and the outside world, but they also provide a security framework for protecting against any single point of failure such as data manipulation and downtime. | ||
== Notable Oracle Failures == | |||
* During the [[LUNA Collapse in May 2022|LUNA 2022 Collapse,]] the Chainlink LUNA price went out of range and kept returning $0.10 while the price of the asset fell to as little as $0.000005 resulting in the hack of two protocols [[Blizz Finance]] and [[Venus]]. | |||
== Sources == | == Sources == | ||