Oracle Problem

The Oracle Problem refers to the challenge of securely bringing outside information into smart contracts on a blockchain. While blockchains handle internal data—like public keys, signatures, timestamps, and block heights—in a transparent and verifiable way, they struggle with integrating external facts, such as sports scores or weather updates, without trusting a middleman. There’s currently no fully trustless way to confirm that off-chain data used by smart contracts is accurate. Various solutions, known as oracles, have been proposed to reduce the need for trust in these data providers, but a completely reliable and decentralized approach remains unsolved.