What is Oracles?

In the context of blockchains and distributed ledger technology, oracles are entities that connect blockchains to external systems, thereby enabling smart contracts to execute based on real-world data and events. Since blockchains, by design, cannot access external data directly, oracles act as a bridge, providing trusted information to smart contracts. This data can include price feeds, weather conditions, election results, or any other information from the outside world. Oracles are crucial for expanding the use cases of blockchain technology beyond simple value transfer, allowing for the creation of more complex and sophisticated applications that interact with the real world. It's important to note that oracles themselves are not necessarily data sources; rather, they query, verify, and transmit external data to the blockchain.