What is the role of an "oracle"in the context of smart contracts?

In the context of smart contracts, an oracle is a third-party service or entity that provides external data to the smart contract. Smart contracts are self-executing contracts with the terms of the agreement directly written into code. However, they lack the ability to access real-world data on their own.

Oracles act as intermediaries between the smart contract and the external world, providing information such as market prices, weather conditions, sports scores, or any other data that the smart contract requires to execute its logic. They fetch and verify this data from various sources, ensuring its accuracy and reliability.

The role of an oracle is crucial as it enables smart contracts to interact with real-world events and conditions, making them more versatile and applicable to a wide range of use cases. Oracles help bridge the gap between the blockchain and the external world, allowing smart contracts to make informed decisions and trigger actions based on real-time data.

What is smart contracts