External data integration involves connecting blockchain networks with information from outside sources. This process enables smart contracts and decentralized applications to access real-time data, enhancing functionality and accuracy.One primary example is the use of oracles, which are services that bridge the gap between blockchains and external data. They fetch and relay information such as price feeds, weather data, and event outcomes, making it possible for smart contracts to trigger actions based on real-world events.For instance, a smart contract in a betting application could rely on an oracle to verify sports match results before distributing winnings. This eliminates the need for a trusted third party and streamlines the process.Moreover, external data integration helps improve transparency and accountability by ensuring that blockchain applications operate based on verifiable and accurate information. With reliable data sources, users can have greater confidence in the outcomes generated by smart contracts and other blockchain-based solutions.