In the world of crypto, an oracle is an in-between solution that fetches data from real-world, real-time systems to be used in the execution of smart contracts. Most smart contracts, or contracts that execute automatically once certain conditions are met, rely on blockchain data to go into action.

This means they don’t have access to data off-chain, so they are limited in their usability outside direct crypto transactions. An oracle, not to be confused with the technology company Oracle, serves as a mechanism that brings data from off-chain into a smart contract so that these contracts can have extended functionality.

Why Fidelity Matters

When a smart contract oracle is said to have high fidelity, this means that it provides a granular view of data. In a way, a high-fidelity smart contract oracle can be used to introduce external information into the blockchain so that contracts execute with precision. With a clearer view of off-chain data through a high-fidelity oracle feed that pulls in data from outside a blockchain, parties to a smart contract can have greater confidence in the actions the smart contract executes. Empower your smart contracts: explore our smart contract oracle on this website now!

Another way this is meaningful is that higher fidelity of information used by oracles makes crypto and blockchain technologies more accessible to the public. When people can see and know what’s going on as opposed to just being told to rely on invisible technologies they don’t understand, it becomes easier for the public to adopt progress.

As the crypto industry has been on a campaign to spread the gospel of crypto in recent years, using high-fidelity oracles can be a way to widen the acceptance of cryptocurrencies as a whole and smart contracts specifically.

The Future of Data Fidelity in Crypto

The need for higher fidelity of data will continue to gain importance in the future as crypto becomes more widely accepted. Even though cryptocurrencies have been a niche interest among traders and investors until relativity recently, more and more established financial institutions have taken an interest in crypto. With time, smart contracts and high-fidelity data feeds combined with oracles will likely become mainstays for everyday investors, both within the crypto industry and within traditional trading and investing spheres.

Author Resource:-

Emily Clarke writes about global equities markets, commodities prices, forex rates and more. You can find her thoughts at data management blog.