Oracle-Driven Smart Contract

Crypto terminology for Oracle-driven smart contracts refers to the specific terms and phrases used in blockchain technology that connect external data sources to enhance smart contract functionality and decision-making.

An Oracle-Driven Smart Contract automates agreements and transactions by incorporating real-world data. Smart contracts are self-executing contracts with the terms written directly into code. However, they often require external data to function correctly, which is where oracles come in.Oracles act as bridges between the blockchain and outside information sources. They retrieve, verify, and transmit real-world data, such as price feeds, weather conditions, or events, to the smart contract. This enables the contract to execute based on conditions met outside the blockchain.For example, in a decentralized finance (DeFi) platform, an Oracle can provide the current price of an asset. If the price hits a specified threshold, the smart contract can automatically execute a buy or sell order without human intervention.This connection enhances the versatility and utility of smart contracts, allowing them to function in various applications beyond pure digital transactions. Consequently, Oracle-Driven Smart Contracts play a crucial role in enabling more complex, reliable, and automated processes.

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