Oracle

A data source or structure used for efficient organization of accurate data.

An oracle in cloud computing generally refers to a special data structure that transforms into a data source because it is flexible and easy to use. It is coined from Oracle Cloud, the name of cloud computing service used for data computing, storage, and networking. However, in crypto, oracles are data sources that serve as intermediary components between smart contracts and needed third parties that provide accurate information.

There are different types of oracles in crypto. A common one is the inbound oracle which is used to connect a smart contract to an external source, and create an order based on set conditions following the information from the external source. ChainLink (LINK) is a popular decentralized oracle network that provides secure inputs and outputs for smart contracts on compatible blockchains.