Within the context of Blockchains, oracles are nodes that deliver real-world (off-chain) data to smart contracts that operate in decentralized networks. In other words, oracles bridge the information gap between off-chain and on-chain environments. Chainlink and API3 are common platforms that contribute to interoperability by feeding off-chain data to smart contracts.
Presently, these platforms operate as data source agnostic interoperable solutions with two primary consequences. First, they create an intermediate layer of opaque, costly, and insecure third-party oracles. This layer could have been superseded by businesses (data providers) operating as oracles themselves. Second, their ecosystems are fraught with many intermediaries that exclude the actual data sources.
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