The Oracle Layer refers to a system that connects smart contracts with real-world data. Smart contracts operate on blockchain networks, but they cannot access external information on their own. This is where oracles come in.Oracles act as intermediaries, retrieving data from outside sources and delivering it to the blockchain. This data could include prices, weather conditions, or any other information that might influence the execution of a smart contract. Different types of oracles exist, including centralized and decentralized ones. Centralized oracles rely on a single source for data, which can introduce risks like manipulation or inaccuracies. Decentralized oracles, on the other hand, use multiple sources to verify data, enhancing reliability.The Oracle Layer plays a crucial role in making smart contracts more functional and versatile, enabling applications like decentralized finance (DeFi), insurance, and supply chain management by providing the necessary data for their operations.