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Crypto Terms:  Letter O
Jul 07, 2023 |
updated: Apr 02, 2024

What is Optimistic Oracle?

Optimistic Oracle Meaning:
Optimistic Oracle - a type of oracle in which real-world data is combined with decentralized systems, and the data is assumed to be correct if it hasn't been disputed for a specific amount of time.
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Let's find out Optimistic Oracle meaning, definition in crypto, what is Optimistic Oracle, and all other detailed facts.

An oracle that combines real-world data with decentralized systems and in which the data is accepted as true (if it hasn’t been disputed for a certain period) is referred to as an optimistic oracle. The optimistic oracle is different from the price-feed oracle, which streams prices on-chain without recourse or error protection.

Optimistic oracles can be employed in different ways than to price-feed oracles due to their unique design. They can offer arbitrary data and long-tail information requests in addition to asset prices that price-feed oracles might not be able to support.

Since inaccurate data can be challenged, the optimistic oracle protects smart contracts and users from external data feed tampering. Other oracle systems are only as secure as their data stream, therefore this is a unique feature of optimistic oracles.