Optimistic Oracle
| An optimistic oracle is 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. This type of oracle can be used in situations where it is important to have up-to-date information, but where it is not practical or possible to have a centralized authority verifying the data. One example of an optimistic oracle is a decentralized exchange, where prices are determined by the last trade that has been made on the platform. In this case, the data is assumed to be correct unless someone disputes it by making a trade at a different price. Another example is a social media platform where posts are assumed to be true unless someone reports them as false. Optimistic oracles have the advantage of being more efficient than centralized systems, since they don't require a central authority to verify the data. They also have the advantage of being more resistant to fraud, since it is more difficult to manipulate data that is distributed across a decentralized network. However, optimistic oracles are not perfect, and they can be vulnerable to Sybil attacks, where someone creates multiple fake identities in order to manipulate the data. |
Share this glosssary
