An oracle is a system or process that feeds real-world data into a blockchain-based market so it can be resolved automatically or by a review process.
Understanding oracle helps you read prices and manage risk on any prediction market platform.
Example
An oracle reports the final score of a game, and the smart contract uses that data to pay out YES or NO shares.
Why it matters
Knowing how oracle works lets you compare markets and avoid costly mistakes when trading.
Practical tip
Before trading, check how oracle shows up on the specific platform you use, since interfaces and terminology can vary slightly between exchanges. Reviewing a few live markets is a quick way to see oracle in action before risking real funds.