Oracles are entities that bridge the gap between blockchains and the outside world. They provide external data to smart contracts, which, in turn, execute based on real-world information. Without oracles, smart contracts would be unable to function effectively, as they only have access to the blockchain data they are built on.There are two main types of oracles: centralized and decentralized. Centralized oracles rely on a single source of data, which can lead to trust issues and single points of failure. On the other hand, decentralized oracles aggregate information from multiple sources, enhancing reliability and security.Oracles can deliver various types of data, including price feeds, weather conditions, and sports scores. Their role is crucial in enabling many decentralized applications, allowing them to react to real-world events. This connection ultimately broadens the capabilities of blockchain technology, making it more versatile and useful across various industries.