What are oracles, and why are they crucial for block chains?
Oracles are services that provide off-chain data to block chains. Since block chains are inherently closed systems, they need oracles to accurately react and respond to real-world events. Oracles are sometimes referred to as middleware since they bridge block chains and external, real-world data sources. racles are particularly essential for the functioning of block chain smart contracts in order to do more things. For example, if a smart contract were set up to transfer USDC worth one BTC from Jane’s wallet to Jill’s wallet at a certain date, the smart contract would need to reference an oracle to determine the exact value of BTC in USDC to transfer to Jill’s wallet – and have awareness of the date and time.

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