What is an Oracle

An oracle is a program that sends real-world data to a blockchain. Oracles usually keep track of specific data, such as weather patterns and temperatures, however they can be used for a multitude of other purposes. In some cases, oracles are used to allocate resources, such as the disbursement of money, to various charities and businesses.

What are Oracles Used for

Oracles play a vital role within the blockchain ecosystem because they make it possible for blockchains to interact with information that exists outside of their own network. Oracle programs can bridge data from one blockchain to another, just as easily as they can bridge data with external sources, such as traffic and weather monitoring systems. Oracles are even capable of dispersing payroll checks to individuals, based on an unbiased set of parameters.

Potential Use-cases for Oracles in Everyday Life

Oracle and blockchain technologies may very well become indispensable tools for disaster relief, or severe weather conditions. As an example, an oracle could direct a cargo ship away from a potentially dangerous storm before it even takes place, based on weather patterns alone. Using oracle technology in cargo shipping would also make it much easier to track international packages.

Conclusion

Oracle technology already plays a crucial role in the way we use cryptocurrency. Many of the Web3 protocols that are currently being developed rely heavily on oracle software. Its exciting to see how oracle software and blockchain technology will improve the world we live in, one advancement at a time!