42. Top 10 blockchain oracles. How do they work? How do they differ?

Blockchain technology is powerful. It allows us to build decentralized apps, execute smart contracts without middlemen, and create transparent financial systems. But even the most advanced blockchains have a major limitation — they can’t access real-world data on their own.

That’s where blockchain oracles come in. These tools are the bridge between blockchain systems and the outside world, helping smart contracts make decisions based on real-life events.

What Are Blockchain Oracles?

Imagine a smart contract that needs to release funds when a flight is delayed, or when ETH hits a certain price. The blockchain itself doesn’t know if the flight was late or what the current ETH price is.

Blockchain oracles solve this problem. They feed off-chain data — like prices, weather updates, GPS locations, or sports results — into blockchain applications. Without oracles, smart contracts would be stuck in their own isolated world.

With oracles, they can:

• trigger automatic payments,

• adjust values in DeFi apps,

• settle bets in prediction markets,

• track assets in supply chains,

• and much more.

Where Do Oracles Get Their Data?

Oracles gather data from various sources, depending on what’s needed:

• APIs from exchanges like Binance or Coinbase,

• IoT devices, like temperature sensors or QR scanners,

• Human input, for example from experts like meteorologists,

• Or aggregated feeds from multiple sources to boost reliability.

Most oracles rely on multiple nodes (computers) to verify the data before it’s sent to the blockchain. This reduces the chance of errors or manipulation.

Types of Oracles

Not all oracles work the same way. Here are the main types:

• Inbound oracles – send information into the blockchain (like price feeds).

• Outbound oracles – send blockchain data out to the real world (like triggering a bank payment).

• Hardware oracles – gather data from physical devices.

• Software oracles – get information from web-based sources.

• Decentralized oracles – use multiple nodes to verify data, avoiding a single point of failure.

• Centralized oracles – rely on one trusted source (faster but riskier).

• Human oracles – real people input data manually.

• Contract-specific oracles – created for a single task and shut down afterward.

Top 10 Blockchain Oracles – Updated as of August 13, 2025

1. Chainlink (LINK) The undisputed market leader for oracles, supporting key networks like Ethereum, BNB Chain, and Avalanche. In the last month, adoption of its CCIP protocol for cross-chain communication has continued to grow, especially in the asset tokenization (RWA) sector.

   Price: approx. $16.50

2. Band Protocol (BAND) An oracle from the Cosmos ecosystem, utilizing the DPoS mechanism. Recently, the project announced integrations with several new appchains within the Cosmos network, expanding its reach.

   Price: approx. $0.75

3. UMA (UMA) Specializes in synthetic assets and financial contracts. In the last quarter, the main point of interest has become the Oval protocol, designed to secure cross-chain bridges by capturing MEV.

   Price: approx. $1.35

4. DIA (DIA) An open-source project that aggregates data from CEX and DEX platforms. It recently launched new data feeds for Real-World Assets (RWA), expanding its offering beyond standard crypto prices.

   Price: approx. $0.48

5. API3 (API3) Provides decentralized APIs (dAPIs) without intermediaries thanks to its Airnode technology. The project is focused on forming partnerships with traditional Web2 data providers to facilitate their entry into the blockchain ecosystem.

   Price: approx. $0.80

6. XYO Network (XYO) A leading project in the DePIN (Decentralized Physical Infrastructure Networks) sector, focusing on geospatial data. It utilizes a network of devices to verify real-world locations.

   1. Price: approx. $0.011

7. iExec RLC (RLC) A marketplace for decentralized computing power. Interest in the project is driven by the narrative of using decentralized resources for training AI models, which is an alternative to centralized cloud services.

   Price: approx. $1.20

8. Tellor (TRB) An oracle on Ethereum where data providers stake TRB tokens as a guarantee of their accuracy. The token remains known for its extreme price volatility due to its tokenomics.

   Price: approx. $55.20

9. Nest Protocol (NEST) An oracle on Ethereum that utilizes a “quotation mining” mechanism, rewarding users for providing accurate real-time price feeds.

   Price: approx. $0.000175

10. DOS Network (DOS) A Layer 2 oracle known for its high throughput. Despite its niche character, it maintains a stable position in its category.

    Price: approx. $0.0011
    Market Cap: approx. $7.1 million, Daily Volume: approx. $25,000

Note: Cryptocurrency prices and market data are highly volatile and are provided for informational purposes only.

Why Are Oracles So Important?

Without oracles, smart contracts would be blind. Oracles give them the ability to react to real-world events, enabling:

• DeFi apps to update prices in real time,

• NFT games to sync in-game rewards with off-chain events,

• DAOs to vote based on real-world outcomes,

• and logistics apps to track real items.

In short, oracles unlock the full potential of blockchain technology.