I was asked: How do smart contracts know off-chain prices?
I usually answer like this: Smart contracts can’t access off-chain data directly, such as token prices or match results. Oracles have to send that data on-chain. If an oracle is manipulated, protocols that rely on it could liquidate positions at the wrong price, so it’s crucial to have diverse data sources and a sufficiently decentralized network of nodes.
$LINK 11.366（-2.88%）
What was the first context in which you understood this?
I usually answer like this: Smart contracts can’t access off-chain data directly, such as token prices or match results. Oracles have to send that data on-chain. If an oracle is manipulated, protocols that rely on it could liquidate positions at the wrong price, so it’s crucial to have diverse data sources and a sufficiently decentralized network of nodes.
$LINK 11.366（-2.88%）
What was the first context in which you understood this?
