An oracle (blockchain oracle) is a service that connects blockchains with external data—decentralized applications, other blockchains, marketplaces, cloud providers, IoT devices, payment systems, and enterprise systems. It is primarily used to power smart contracts.
When a smart contract needs to obtain information from the external environment, for example, how much a token costs or what the price of a barrel of oil is, then it is the oracle that transmits this data to it.
Blockchain oracles check the execution conditions of smart contracts and also provide them with the information necessary for their execution. They are not part of the blockchain and therefore do not violate its security. So the network is still decentralized, but it has external data.
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