What is the role of external oracles in ensuring the accuracy of data in cryptocurrency smart contracts?

3 answers

• Nov 24, 2021 · 3 years ago
  External oracles are like the eyes and ears of smart contracts in the cryptocurrency world. They provide a bridge between the blockchain and the real world by fetching and verifying external data. By relying on trusted sources, these oracles ensure that the data used in smart contracts is accurate and reliable. Without external oracles, smart contracts would be limited to only the data stored on the blockchain, which is often not sufficient for complex applications. So, in a nutshell, external oracles are the guardians of data integrity in cryptocurrency smart contracts.
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• Nov 24, 2021 · 3 years ago
  Imagine you're playing a game of poker on a blockchain-based platform. You want to know the current price of Bitcoin to determine the value of your chips. This is where external oracles come into play. They fetch the real-time price data from various exchanges and provide it to the smart contract. The smart contract then uses this information to calculate the value of your chips accurately. Without external oracles, the smart contract would be clueless about the current price and could potentially make incorrect calculations. So, external oracles ensure that the data used in smart contracts is up-to-date and accurate.
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• Nov 24, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, understands the importance of external oracles in maintaining data accuracy in smart contracts. As a third-party oracle provider, BYDFi fetches and verifies data from reliable sources to ensure the integrity of smart contracts. By leveraging external oracles, BYDFi enables its users to build complex applications on its platform with confidence. So, if you're looking for a cryptocurrency exchange that values data accuracy and security, BYDFi is the way to go!
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