A smart contract can follow its rules perfectly and still act on bad information.
Ethereum contracts cannot directly check facts outside the blockchain. Oracles supply that information, such as market prices or the outcome of an event.
That matters because reliable execution and reliable inputs are different things. Putting a price onchain does not automatically make the price accurate.
Before using an app that depends on external data, check its documentation: where does the data come from, how is it updated, and what happens if the feed stops?
The risk: incorrect or unavailable data can cause wrong outcomes or prevent actions from completing. Multiple data providers can reduce dependence on one source, but they do not remove every risk.
Source: Ethereum.org — https://ethereum.org/en/developers/docs/oracles/
#Ethereum #DeFi #Oracles #CryptoEducation #RiskManagement
Ethereum contracts cannot directly check facts outside the blockchain. Oracles supply that information, such as market prices or the outcome of an event.
That matters because reliable execution and reliable inputs are different things. Putting a price onchain does not automatically make the price accurate.
Before using an app that depends on external data, check its documentation: where does the data come from, how is it updated, and what happens if the feed stops?
The risk: incorrect or unavailable data can cause wrong outcomes or prevent actions from completing. Multiple data providers can reduce dependence on one source, but they do not remove every risk.
Source: Ethereum.org — https://ethereum.org/en/developers/docs/oracles/
#Ethereum #DeFi #Oracles #CryptoEducation #RiskManagement