Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
Ethereum’s smart contracts are powered by ether, the cryptocurrency that fuels the network. Ether is like a vehicle for moving around on the Ethereum platform, and is sought by mostly developers looking to develop and run applications inside Ethereum.
So does Ethereum have an Oracle? In short, yes.
An Oracle is a third party service that provides external data to a smart contract on the Ethereum network. This data can be anything from the weather forecast to the result of an election.
Oracles are important for two reasons: first, because they allow smart contracts to interact with the real world, and second, because they provide a way to trustlessly source data from external sources.
There are a few different types of Oracles that exist on the Ethereum network, but the most popular and well-known type is the ChainLink Oracle.
ChainLink is a decentralized Oracle service that connects smart contracts on the Ethereum network to external data sources. It does this by creating what are called “links” between contracts and data sources.
These links are created by ChainLink nodes, which are run by individuals or organizations that staked LINK tokens to become a node operator. Node operators are then compensated in LINK tokens for every transaction they process.
This system of staking LINK tokens to become a node operator ensures that there is an incentive for node operators to behave honestly and not tamper with the data they’re providing to smart contracts.
So, in short, Yes – Ethereum does have an Oracle in the form of ChainLink.