What are the oracle chains and how they work?
Oracle chains like #ChainLink with ticker $LINK , #BandProtocol with the ticker $BAND , #DecentralizedInformationAsset with the ticker $DIA act as bridges between blockchains and the external world. Blockchains themselves are isolated environments and cannot access information from outside their networks. This is where oracle chains come in.
Imagine a smart contract that needs to trigger a payout if the temperature in a certain city reaches above 80 degrees Fahrenheit. The blockchain itself cannot measure the temperature. An oracle chain can be used to connect to a weather API, retrieve the temperature data, and verify it before feeding it back to the smart contract. If the condition is met, the payout is automatically executed.
Essentially, oracle chains provide a way for smart contracts to interact with real-world data and events, making them more versatile and powerful.
