Definition
An oracle in blockchain is a conceptual bridge that supplies a distributed ledger or smart contract platform with data originating outside the chain’s native state. It represents the mechanism or arrangement by which off-chain information, such as numerical values, states, or events, is made available in an on-chain format that smart contracts can reference as part of their programmed logic.
In Simple Terms
An oracle is a way for a blockchain to receive information from the outside world. It turns data that exists off the blockchain into a form that smart contracts on the blockchain can read and use as part of their programmed conditions.
Context and Usage
The term oracle is commonly used when discussing smart contract design, blockchain-based financial instruments, and applications that depend on external conditions or measurements. It appears in technical discussions about how blockchains interact with external systems, how contract conditions are evaluated, and how on-chain records incorporate information that does not originate from the blockchain’s own consensus process.