An oracle in cryptocurrency refers to a system that provides real-world data to blockchain smart contracts. Blockchains are self-contained and cannot access external data on their own. This limitation is where oracles play a vital role.Oracles act as intermediaries, fetching information from outside sources and delivering it to the blockchain. This data can include prices, weather conditions, or event outcomes. By bridging the gap between on-chain and off-chain information, oracles enable smart contracts to execute based on real-time data.There are different types of oracles. Some are centralized, relying on a single source for data, while others are decentralized, aggregating information from multiple sources to enhance reliability and reduce the risk of manipulation.Overall, oracles expand the functionality of blockchain technology, allowing for more complex and practical applications, such as decentralized finance (DeFi), insurance, and gaming. Their ability to provide accurate and timely information is crucial for the effective operation of various smart contracts.