Deciphr Academy
Module 15 · Flashcards

Oracles: key words

Read the word, say the meaning out loud, then open the card.

Oracle

A service that brings information from outside a blockchain, such as a price, to smart contracts. Source

Oracle problem

The difficulty of making sure outside data is correct, available and honest, when a contract has to trust whoever supplies it. Source

Price feed

An oracle that keeps a current price on-chain for contracts to read, such as ETH in US dollars. Source

Aggregation

Combining many reports into one value, often by taking the median. Source

Deviation threshold

How far, in percent, the outside price must move from the on-chain price before a feed updates. Source

Heartbeat

The set time after which a feed starts an update even if the price has not moved. Source

Push oracle

An oracle whose operator keeps sending price updates to the chain, at set times or after big moves. Source

Pull oracle

An oracle whose signed prices wait off-chain until a user brings one on-chain in their own transaction. Source

Decentralised oracle network

A group of independent oracle nodes that agree on a value before it goes on-chain. Source

TWAP

Time-weighted average price: an average of a price over a period, so a short spike counts for little. Source

Oracle manipulation

Pushing around the price an oracle reads, so a contract acts on a false value. Source

Flash loan

A loan taken out and paid back within the same transaction. Source

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