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Glossary Term

Oracle

An oracle is a decentralized service that securely bridges blockchain smart contracts with off-chain, real-world data, enabling Solana dApps to access external information (like asset prices, random values, or event outcomes) in a trusted and tamper-proof way—powering DeFi, NFTs, prediction markets, and more.

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Crypto Terminology

Oracle: what is it?

Examples

  • 1

    Chainlink: Provides decentralized price feeds, randomness (VRF), automation, and cross-chain messaging for Solana applications.

  • 2

    Pyth Network: Ultra-fast, institutional-grade price feeds for assets from over 90 top-tier providers, cross-chain compatibility, used by Solend, Mango, and others.

  • 3

    Switchboard: Permissionless, customizable data feeds for DeFi, gaming, and dynamic NFTs, using TEEs for added security.

  • 4

    Umbrella Network: Layer-2 oracle for high-frequency, low-cost custom and price data feeds, secured by decentralized validation.

  • 5

    DIA, Banksea: Specialized oracles for transparent financial, lending, and NFT data feeds.

Common Use Cases

Real-time price feeds for liquidations in DeFi apps (e.g. Solend, Drift).
Settling prediction markets (e.g. Polymarket) with election or sport results.
Providing verifiable randomness for NFT traits and game events.
NFT price appraisal and dynamic trait updates (Banksea, dynamic NFTs).
Standardizing asset prices for stablecoin protocols or derivatives.

Pro Tips

💡

When building dApps, select redundant, highly audited oracle services for reliability.

Frequently Asked Questions

Related Terms

Transaction Finality
Bridge
Node
Escrow
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What does Oracle mean in crypto?