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:
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trigger automatic payments,
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adjust values in DeFi apps,
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settle bets in prediction markets,
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track assets in supply chains,
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and much more.
Where Do Oracles Get Their Data?
Oracles gather data from various sources, depending on what’s needed:
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APIs from exchanges like Binance or Coinbase,
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IoT devices, like temperature sensors or QR scanners,
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Human input, for example from experts like meteorologists,
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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:
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Inbound oracles – send information into the blockchain (like price feeds).
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Outbound oracles – send blockchain data out to the real world (like triggering a bank payment).
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Hardware oracles – gather data from physical devices.
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Software oracles – get information from web-based sources.
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Decentralized oracles – use multiple nodes to verify data, avoiding a single point of failure.
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Centralized oracles – rely on one trusted source (faster but riskier).
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Human oracles – real people input data manually.
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Contract-specific oracles – created for a single task and shut down afterward.
Top 10 Blockchain Oracles – Updated as of September 9, 2025
1. Chainlink (LINK)
Chainlink is the undisputed leader in this industry. It operates on many popular networks like Ethereum and Avalanche. Its use has recently increased in the Real-World Asset (RWA) tokenization sector, which allows traditional assets like real estate or works of art to be brought onto the blockchain.
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Price: approximately $17.20 USD
2. Band Protocol (BAND)
Band Protocol has gained significance, especially within the Cosmos ecosystem. The project is actively expanding its network by integrating with new applications, which broadens its reach and utility.
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Price: approximately $0.80 USD
3. UMA (UMA)
UMA focuses on security and finance. Its Oval protocol is gaining popularity because it helps secure connections between different blockchain networks, which is crucial in today’s interconnected crypto world.
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Price: approximately $1.45 USD
4. DIA (DIA)
DIA is an open-source project. It has recently expanded its offerings to provide data not only on cryptocurrencies but also on real-world assets that have been transferred to the blockchain.
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Price: approximately $0.51 USD
5. API3 (API3)
API3 distinguishes itself by allowing traditional data providers to enter the blockchain world without intermediaries. This is very important for large companies that want to use Web3 technology securely.
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Price: approximately $0.85 USD
6. XYO Network (XYO)
XYO Network is a leader in the DePIN (Decentralized Physical Infrastructure Network) sector. The project is building a network of devices that verify real-world geolocation data, which has applications in logistics and many other industries.
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Price: approximately $0.012 USD
7. iExec RLC (RLC)
iExec RLC is a marketplace where you can rent decentralized computing power. Interest in it has grown with the development of artificial intelligence, as it allows AI models to be trained without relying on large, centralized cloud services.
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Price: approximately $1.25 USD
8. Tellor (TRB)
Tellor is an oracle that operates on Ethereum. Its data providers must stake TRB tokens as a guarantee of the accuracy of their information. It’s worth noting that this token is known for its high price volatility.
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Price: approximately $58.10 USD
9. Nest Protocol (NEST)
Nest Protocol operates on Ethereum and has a unique mechanism that rewards users for providing accurate and real-time price feeds.
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Price: approximately $0.000185 USD
10. DOS Network (DOS)
DOS Network is a lesser-known but stable oracle that operates as a Layer 2, providing high speed and throughput.
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Price: approximately $0.0012 USD
Why Are Oracles So Important?
Without oracles, smart contracts would be blind. Oracles give them the ability to react to real-world events, enabling:
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DeFi apps to update prices in real time,
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NFT games to sync in-game rewards with off-chain events,
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DAOs to vote based on real-world outcomes,
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and logistics apps to track real items.
In short, oracles unlock the full potential of blockchain technology.
