Technical

What Is Oracle?

A service that brings off-chain data (like prices) onto the blockchain.

Definition

An oracle is the pipe between a blockchain and information that lives outside it. Synthetic assets need one because a smart contract has no way of knowing what gold costs. Everything downstream, valuation and redemption included, depends on that feed being right.

How it works

Oracle networks such as Pyth or Chainlink pull price data from several sources, agree on a number, and publish it on-chain. Protocols read it from there.

In Continuum

Continuum prices off Pyth. The oracle price is what your redemption pays out at, and it's the reference arbitrageurs trade any external listing back toward.

Related terms

More technical terms

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