6.12 Crypto Oracles: The Link Between Blockchain and Outside World Data
Stop overpaying - start transferring money with Ogvio. Join the waitlist & grab early Rewards NOW! 🎁
In this section, we’re going to answer the questions of what is an oracle in crypto, and how important are they in the DeFi ecosystem!
At first glance, oracles in crypto can seem a sophisticated, and therefore, intimidating topic. In previous sections, I covered a bunch of blockchain-related subjects such as smart contracts, DeFi, and blockchains themselves. Crypto oracles are where all of them interlink.
You see, the world of blockchain tech relies on one, crucial aspect - information. Just like oracles were the ones who revealed seemingly unattainable information back in the old days, the modern-day crypto oracles do the very same - they keep things running by providing the latest data.
In this section, we’re going to take a deep dive into the concept and practical application of crypto oracles. I’ll give you a brief introduction of what they are, then I’ll look into how they are applied in practice, and, finally, what are their drawbacks. In the end, you’ll be well aware of what they do, what makes the best crypto oracles, and how they keep the bricks of the DeFi house together!
Without further ado, let’s get to it!
Video Explainer
Video Explainer: Crypto Oracles: The Link Between Blockchain and Outside World Data
Reading is not your thing? Watch the "Crypto Oracles: The Link Between Blockchain and Outside World Data" video explainer
What Are Oracles in Crypto? (Beginner Friendly Animation)
What is an Oracle in Crypto?
Let’s start from the very beginning - what is an oracle in crypto?
The technical definition sounds something like this: “Oracles are entities that provide real-world data, or information, to smart contracts on blockchain networks”. Okay, that doesn’t sound too complex. Why do we need them, though?
Oracles serve as a bridge between the blockchain and the outside world, allowing smart contracts to interact with external data sources in a decentralized (and secure!) manner. It’s thanks to them that smart contracts are able to be activated and execute actions based on verified, up-to-date, and reliable information. Best crypto oracles allow DeFi apps to run flawlessly, without the intervention and supervision of a third, centralized party.
Okay, suddenly, things got a bit more intricate. Let's take a look at it another way. Imagine a pawn shop. Someone brings in a gold watch that they want to sell. Now, to avoid being scammed, the pawn shop owner needs to be aware of how to recognize real and fake gold. Then, in order to accurately evaluate its price, the owner needs to be aware of the current price of gold, and how much particular gold watches go for. Based on their knowledge and experience, the pawn shop owner immediately scans the situation, and can come up with a fair offer.
Now, imagine if the pawn shop owner was on sick leave, and they had a random guy run the shop as a substitute. The substitute worker would have no clue about how to evaluate the gold watch. He would have to either Google things, or call the owner to consult with him. His decision would depend on an external source of information. You could say that… The substitute worker would need an oracle to accurately evaluate the deal.
Let’s turn this imaginary pawn shop into a DeFi application that runs automatically, thanks to smart contracts.
Smart contracts get activated when certain, predefined conditions are met. For example: “if a user pays X amount of coins, the user receives Y amount of different tokens”. If the amount is less than the required X, the smart contract is not activated; therefore, the user cannot receive anything.
But, in order for smart contracts to run smoothly, they need a constant reminder about the state of the ongoing deal, about the value of particular coins or other assets, or the simple fact that the user is solvent, and actually has the required amount of coins or tokens in their wallet. All of these variables substitute one word: information.
That’s where the crypto oracles come in. They verify all of this, and make sure that there’s no fishy business going on. And then, after all of this info gets verified, they trigger the payment, as the smart contract gets activated.
Different Types of Oracles in Crypto
By now, we have found out that the answer to the “what is an oracle in crypto?” question is that they function as a source of external, real-life information that smart contracts depend upon.
It would be easy to simply find a list with all the best crypto oracles named in it. But they differ in many ways, as there are several types of oracles in crypto. What are they?
Well, there are two main kinds, actually - software and hardware oracles.
A software oracle is what it sounds like. An oracle in the form of a specifically designed program to run as the bridge between the blockchain and off-chain data sources. These sources can be web-based databases, and they’re used for consistent tracking of a particular variable, such as the price of an asset, real-life events, or simply web services and their prices.
To tell it in layman’s terms, just like librarians help readers find a specific book within a large library, software oracles help smart contracts find the necessary information to validate and begin executing it themselves.
Moving on to hardware oracles. Once again, it’s all in the name. Unlike software oracles, hardware oracles aren’t simply computer programs. They are hardware devices. They operate in physically isolated environments, therefore, they are less accessible to hackers, or other actors guided by malicious intents. This aspect makes hardware oracles stronger and more resilient in terms of security. Their purpose remains the same - to securely transfer data into a blockchain.
So, to sum up, the key difference between hardware and software oracles is the level of security they provide to a blockchain.
Practical Use Cases of Oracles
Furthermore, let’s concentrate on something practical - let’s move on from the question “what is an oracle in crypto?”, and talk about what they do. Specifically, what are the practical use cases of crypto oracles? Let’s zoom in on a specific example - Chainlink, the decentralized blockchain oracle network. As of writing, it’s the most popular oracle in the entirety of DeFi. It’s also the perfect example of a software oracle.
Here’s what it does. Whenever traders engage in buying, selling, or trading coins and tokens, in order for trades to be executed, the smart contract needs to be updated with the latest information about the actual value of a particular coin. For example, whenever a trader is about to make a swap from ETH to the USDC stablecoin on a DEX, a decentralized exchange, the oracle is the mechanism behind precise and reliable price evaluations.
Besides, if you feel like your knowledge about stablecoins or DEXs needs updating, be sure to check dedicated sections to these topics covered in this Crypto 101 Handbook! Now, let’s cement it: oracles in crypto are the tools that keep the network fresh and up-to-date with constant updates about how much a particular coin is valued every moment.
Furthermore, another crypto oracle use case is supply chain management. Think of an oracle as a GPS device. Just like it tracks the movement of a person, or a car, or a shipment, so does an oracle track the status of transactions of data, be it money, staking, swaps, or whatever, on the blockchain. Whenever a significant change takes place, the oracle gets updated, and sends out the signal to the blockchain.
In addition to these use cases, one more interesting example could be added: gaming. Think of it this way – as gamers continue playing games and climbing up the leaderboard, an oracle tracks the results and updates smart contracts on the blockchain with the latest achievements, progress, and stats.
Challenges and Risks
Now, no one’s perfect in this world. Oracles aren’t an exception, and even if you made a “best crypto oracles” list, you’d still find drawbacks with almost every one of them.
The main challenge that arises from using oracles is ensuring that the data they bring in is accurate and reliable. Instead of tampering with the oracles, attackers can manipulate the sources that oracles gather their data from. If the primary information point is compromised, the oracle will automatically transfer altered data to the blockchain.
Whenever an oracle relies on a single source of data, the risk gets high. This is where the term a Single Point of Failure (SPOF) comes in. It happens when there is a single point or entity that controls the oracle, and it gets compromised, thus hurting the trustless and decentralized nature of the blockchain.
A real-life SPOF example occurs when a power grid goes down because of a failure in a single power station. Just like a power grid, a blockchain network needs multiple sources of data to function properly. An SPOF oracle would mean that the network relied on a single point of informational input that got affected.
Wrapping Up
To conclude, oracles are like messengers of the crypto world, bridging the gap between the decentralized blockchain network and the traditional world of data and information. They enable smart contracts to access and use data from the outside world, making them a crucial component of the crypto ecosystem.
From DeFi to supply chain management and gaming, oracles have a wide range of use cases that are revolutionizing the way we interact with data in a fast, reliable, and decentralized manner.
However, with great power comes great responsibility. It's important to keep in mind the challenges and risks associated with oracles, and to implement measures to mitigate them. These challenges mainly consist of ensuring the accuracy and reliability of the data, avoiding the “Single Point of Failure” issue, and setting up enough barriers and protection from malicious manipulation.
So, whether you're a crypto enthusiast, a blockchain developer, or simply someone who's curious about the future of technology, being able to answer the question of “what is an oracle in crypto?” is essential.
At first glance, staking can appear much the same as providing liquidity - you have some crypto coins or tokens, and provide them to a specific platform, in order to earn passive returns. I have to admit, going into the topic in-depth, things aren’t that simple - do check out the section on <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-staking-in-crypto/">staking, as well as the differences between <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//coin-vs-token/">coins and tokens<\/strong><\/a> if you’d like to learn more.<\/p>\n<p>For the sake of keeping this section about yield farming, though, let’s just say that staking is when you <strong>lock up your tokens<\/strong> in the network, in order for them to confirm other people’s transactions. Only specific coins can be staked - those that are built on the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-proof-of-stake-pos/">Proof-of-Stake consensus model!<\/p>\n<p><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is yield farming: Proof-of-Stake.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-yield-farming-4.o.jpg/" alt=\"What is yield farming: Proof-of-Stake.\" width=\"1000\" height=\"764\" \/><\/p>\n<p>The simplest example of staking would be that of the Cardano project, and its native coin called ADA. You can purchase ADA on most top-rated cryptocurrency exchanges on the market, such as Binance or Coinbase. After you have your ADA coins, you would then need to find a staking pool - the simplest way to do this is to transfer your ADA into the Yoroi wallet - it’s a browser extension-based wallet, and is the most popular place where people store and keep their ADA coins. Also, Yoroi has multiple pools available to be accessed from within the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//best-cryptocurrency-wallet/">wallet!/n All that you need to do is choose the pool that you want, and delegate <strong>your ADA coins<\/strong> into it. As time goes on, your coins will start earning passive returns for you!<\/p>\n<p>Admittedly, this is a topic that deserves a separate section, of its own.<\/p>\n<p><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is yield farming: Staking = providing liquidity.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-yield-farming-5.o.jpg/" alt=\"What is yield farming: Staking = providing liquidity.\" width=\"1000\" height=\"319\" \/><\/p>\n<p>Another way how you can stake coins, and thus, farm yield, is on <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//best-cryptocurrency-exchange/">cryptocurrency exchanges<\/strong><\/a> themselves. Some of the most popular exchange platforms are beginning to offer their users staking functionality - you could purchase coins, and then simply stake them from within your exchange-based cryptocurrency wallet - there’s usually just one button to press, and that’s it!<\/p>\n<p><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is yield farming: Staking coins.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-yield-farming-6.o.jpg/" alt=\"What is yield farming: Staking coins.\" width=\"1000\" height=\"518\" \/><\/p>\n<p>In most cases, your yield rewards will be the same tokens that you stake, or the so-called “LP tokens”, otherwise known as liquidity provider tokens. You will then be able to trade these LP tokens to another cryptocurrency, such as Ethereum.<\/p>\n<h2>Redistribution Fees<\/h2>\n<p>The last big method of how you can participate in yield farming is by holding cryptocurrencies that have <strong>redistribution fees<\/strong>.<\/p>\n<p>Sounds fancy? Well, it’s super-simple, really!<\/p>\n<p>Some cryptocurrencies have what are called “redistribution fees”. This means that, whenever you trade this crypto, a part of the fees that you pay for the trade will be distributed to other holders of this cryptocurrency.<\/p>\n<p>Probably the best-known example of this would be <strong>Safemoon<\/strong>. This is a very popular cryptocurrency that has redistribution fees, as well as token-<a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-burning/">burning mechanics.<\/p>\n<p>Token burning sounds pretty fancy, but it really is simple. As you transact with a cryptocurrency, you pay certain fees for your transactions, in the form of those same tokens - so, let’s say, if you want to send 10 Safemoon to your friend, that will cost you 1 Safemoon token, as a transaction fee.<\/p>\n<p><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is yield farming: Safemoon example.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-yield-farming-7.o.jpg/" alt=\"What is yield farming: Safemoon example.\" width=\"1000\" height=\"958\" \/><\/p>\n<p>Some of those fees will be redistributed to token holders - say, they would share 0,5 of a Safemoon token. The other 0,5 Safemoon would be sent to an <strong>inactive, inaccessible wallet<\/strong>. This is what is called “token burning” - tokens in this wallet would be lost forever. This way, the token battles inflation, and still rewards holders!<\/p>\n<p>Now, obviously, there are various technicalities to be aware of, when it comes to this type of yield farming. The token may sway in price heavily, and you would need to have A LOT of tokens in order to receive any notable yield gains.<\/p>\n<h2>Leveraged Lending<\/h2>\n<p>So, with the four big, main yield farming methods out of the way, I’d also like to tell you about a bonus method. It’s called “leveraged lending” - I left it as a bonus because it’s a bit trickier than the other yield farming tactics we’ve discussed in this section.<\/p>\n<p>Imagine that you have $100 in ETH. You decide to lend the ETH, and borrow some <strong>DOGE coins<\/strong>, by putting your ETH up as collateral. Since your collateral will always need to be bigger than your loan, you receive $70 worth of Dogecoin in return.<\/p>\n<p>Now, what you would do is go to a cryptocurrency exchange, and trade in your Dogecoins for Ethereum. You now have ETH again! So, you take it back to the lending platform, put in your new ETH coins, and borrow some more Dogecoin - and repeat the process!<\/p>\n<p>Since your collateral will always be higher than your loan, this does have an endpoint. However, by the end, you’ll have much more ETH in the lending platform than you did at the beginning.<\/p>\n<p>This isn’t a very simple process to set up, since it requires knowledge of APRs, different lending and borrowing platforms, and great timing. Also, the prices of cryptocurrencies these days are <strong>rather volatile<\/strong>, and you might end up liquidating your positions, if the price of ETH drops too much. However, with a bit of practice, this can be a pretty interesting yield farming strategy!<\/p>\n<p>So, to conclude the section, I’d like to say that, when it comes to yield farming, there are multiple methods that you could employ, with varying degrees of risk and reward. In short, though, you should focus on the <strong>top-rated projects,<\/strong> and cryptocurrencies that have historically shown signs of resistance against large price swings and general market volatility.<\/p>","definition":"Did you know that yield farming protocols include Aave, Curve Finance, Uniswap, and many others?","status":"published","meta_title":"What is Yield Farming in Crypto: Yield Farming Explained","meta_description":"Find out what is yield farming in crypto and all of the important factors such as types of yield farming that you could participate in!","meta_keywords":"what is yield farming, yield farming crypto, yield farming explained, crypto yield farming, crypto farming","updated_at":"2024-03-18T02:25:03.000000Z","published_at":"2023-07-07T07:45:07.000000Z","youtube_video":{"id":17,"channel_id":1,"sort":102,"video_title":"What is Yield Farming in Crypto? (Animated Explanation)","description":"What is yield farming in crypto?\n\nYield farming allows you to use cryptocurrencies in order to earn a passive income over a period of time, without selling or trading your actual cryptos. \n\nThere are multiple methods of how you can participate in yield farming, all coming with varying degrees of risk and reward. In this video, I will tell you about the main methods, and explain how you can start farming crypto yield today!\n\nHave you ever participated in cryptocurrency yield farming activities? Share your experiences in the comment section below!\n\nVideo Time Table:\n\n0:00 Introduction to What is Yield Farming in Crypto\n0:41 What is Yield Farming?\n2:09 Crypto Lending & Borrowing\n4:30 Providing Liquidity\n5:57 Staking\n7:54 Redistribution Fees\n9:11 Leveraged Lending\n10:15 Wrap-up: What is Yield Farming in Crypto?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#WhatisYieldFarming #YieldFarmingCrypto #CryptoYieldFarming #YieldFarmingExplained #CryptoFarming","video_id":"gZIux6vkz6w","duration":644,"view_count":1315,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-yield-farming-in-crypto-animated-explanation.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2022-03-22T16:17:03.000000Z","created_at":"2022-03-22T23:00:02.000000Z","updated_at":"2025-10-28T23:00:16.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}"
:next-section="{"id":470,"chapter_id":6,"order":13,"featured_image_id":3084,"youtube_video_id":54,"author_id":1,"created_at":"2023-03-03T11:39:31.000000Z","slug":"crypto-gambling","title":"The Peculiarities of Decentralized Crypto Gambling","content":"<p>In this section, we’re going to talk about decentralized crypto gambling, and how it’s different from traditional gambling!<\/p>\n<p>Gambling is a bit of an interesting topic - that’s for sure. However, to this day, it’s one of the more popular forms of entertainment - this is something that can’t be denied, either. With how popular gambling is, though, it’s only natural that there are new and emerging technologies coming out in this field, continuously.<\/p>\n<p>This is where crypto gambling comes into play, as well. While the concept is probably as old as crypto itself, if you’re not an active participant in this space, you might be surprised to find out just how many different aspects of crypto tech the field of gambling has managed to employ!<\/p>\n<p>In this section, <strong>we’re going to discuss crypto gambling<\/strong>. To be more specific, I will tell you what this form of gambling is, to begin with, and how it’s different from your common, everyday gambling processes. Then, we’ll also talk about the key aspect that makes crypto gambling appealing, when compared to traditional gambling platforms.<\/p>\n<p><em>So, let’s get to it!<\/em><\/p>\n<h2>What is Crypto Gambling?<\/h2>\n<p>To start out, let me just say - crypto gambling isn’t a very simple topic, and it requires some fundamental knowledge about crypto, in general, and how certain blockchain-related processes work. If you’re unfamiliar with all of that, or feel like you need to brush up your “Crypto 101” skills, make sure to <strong>check out other chapters in this Handbook<\/strong> - I have sections dedicated to all of the core aspects of this technology!<\/p>\n<p>Assuming that you’re already crypto-savvy, though, let’s start off by outlining some definitions of just what crypto gambling is. This is where an example would probably suffice.<\/p>\n<p>So, imagine that, while shopping for groceries in your local mall, you’ve come across a magician booth. The so-called magician has 5 different cups lying on the table, faced down, and a marble. He proposes a deal to you - you pay him some money, and guess the cup under which the marble is placed. If you’re correct, you’ll get your money back, as well as an additional reward on top of it.<\/p>\n<p>Now, the magician also tells you that he has a <em>“special system”<\/em> of how he places the marble under the cups, and that <em>“the odds are definitely fair”<\/em>. So, would you participate in a game like this?<\/p>\n<p>I can hear you asking already - <strong>what does this have to do with crypto gambling?!<\/strong> Well, bear with me - while it’s no Ethereum casino just yet, all of this will make sense in a minute.<\/p>\n<p>Moving on, I’d like to give you an altered version of the earlier example. So, imagine that the situation is completely the same, but instead of a magician, there’s a special machine handling the marble & the cups, as well as paying out rewards. Furthermore, you can take your time and read about the <em>“special process”<\/em> of how the cups are selected, and how the marble is placed.<\/p>\n<p>Finally, if you’re still not convinced, you can step aside and view how the machine works when other people play, and how the rewards are paid out. So, to sum up, and in other words - the entire process is <em>provably<\/em> fair.<\/p>\n<p><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto gambling: Traditional gambling.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto-gambling-01.jpg/" alt=\"Crypto gambling: Traditional gambling.\" width=\"1000\" height=\"632\" \/><\/p>\n<p>Now, this latter example works well to represent crypto gambling, at least to a satisfactory extent! With traditional gambling processes, you never really know what algorithms are used in the game that you’re playing (unless you’re betting on a live sports event, that is). Furthermore, there are countless different horror stories where players would win big, and then suddenly, the underlying platform would come up with excuses for why the win doesn’t count. In turn, this would result in the winnings not being paid out, as well.<\/p>\n<p><strong>Crypto gambling offers a sort of solution for those problems - provably fair gambling processes<\/strong>. You see, when you play a game on a decentralized crypto gambling platform, the underlying mechanics are based on a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-smart-contract/">smart contract<\/strong><\/a>. These <em>“mechanics”<\/em> (or, rules of the game, as well as the odds of you winning or losing) are predefined, and once the smart contract is activated (in other words - once you start playing), they are going to be enforced, no matter what. That’s the magic of smart contracts!<\/p>\n<p><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto gambling: Decentralized crypto gambling.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto-gambling-02.jpg/" alt=\"Crypto gambling: Decentralized crypto gambling.\" width=\"1000\" height=\"584\" \/><\/p>\n<p>On top of that, it’s probably still worth stating the obvious, as well - whether it be decentralized crypto gambling, or gambling with some sort of an established brand (such as Stake crypto gambling), instead of <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-fiat/">fiat money, you would be using your cryptocurrencies. This makes the whole entire experience more interesting and, potentially, somewhat anonymous, too!<\/p>\n<h2>Decentralization - The Key Element of Crypto Gambling<\/h2>\n<p>Moving on, I want to tell you the secret - all of those cool features that we’ve just talked about, when it comes to crypto gambling, are made possible thanks to a single aspect - <strong>decentralization<\/strong>.<\/p>\n<p>Now, when people talk about gambling and wagering their cryptocurrencies, in most cases, they are referring to just that - decentralized crypto gambling. There are also <strong>centralized crypto gambling platforms<\/strong>, too, but these operate very similarly to your traditional gambling establishments.<\/p>\n<p>Most projects that employ the decentralized model, however, have some significant benefits to offer to their clients, when compared to traditional gambling institutions. For the sake of keeping things simple, let me use <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//coingames/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>CoinGames<\/strong><\/a> - a popular online decentralized crypto gambling casino - as an example.<\/p>\n<p><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto gambling: CoinGames example.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto-gambling-04.jpg/" alt=\"Crypto gambling: CoinGames example.\" width=\"1000\" height=\"555\" \/><\/p>\n<p>So, the very first thing that you’ll notice with CoinGames is that you don’t actually need to transfer any of your funds to the platform, as you gamble. With a traditional, centralized gambling platform, the situation would be very different. This is a major benefit of decentralized gambling - the fact that <strong>it’s non-custodial by nature<\/strong>, and that your funds are never handled by the underlying company behind the gambling project.<\/p>\n<p>Who handles the funds, then? Well, simple - <strong>the earlier-mentioned smart contracts<\/strong>!<\/p>\n<p>Sticking with the CoinGames example, if you decide that you want to play one of the games available on their platform - of which there are many, to be fair! -, all that you would need to do is pass a very quick registration process, connect your wallet to their website, and have some of the required tokens (in CoinGames’ case, these are called DEGA).<\/p>\n<p>Once you decide to play a game and gamble your tokens, they would be held in a smart contract - this contract would either automatically issue your rewards if you win, or keep your wager, if you lost. Since the contract is tied to the game, it updates your balance automatically.<\/p>\n<p>Pretty cool, huh? Well, an arguably even cooler feature of decentralized gambling is that <strong>all of the processes of the smart contracts can be viewed on the blockchain<\/strong> - they are completely public, and open for anyone to check, at any point in time. It’s the same as with the cup-handling aforementioned machine example - if you can check the rules by which it operates, and view how the machine interacts with other players, you are able to deduce whether or not the whole process is fair!<\/p>\n<p>Naturally, since the example-platform in question - CoinGames - features decentralized crypto gambling functionality, these things would work the exact same with this project, as well.<\/p>\n<p>Now, the one big question that tends to come up, whether while talking about Stake crypto gambling, CoinGames, or gambling crypto tokens, in general, has to do with the legality of the matter. Specifically - <strong>is crypto gambling legal, to begin with?<\/strong><\/p>\n<p><strong><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto gambling: Is crypto gambling legal?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto-gambling-06.jpg/" alt=\"Crypto gambling: Is crypto gambling legal?\" width=\"1000\" height=\"570\" \/><\/strong><\/p>\n<p>Well, to tell you the truth – that’s a complicated question to answer! In many cases, Ethereum casinos and other gambling platforms will be <strong>legal in those countries and states where gambling is legal<\/strong>, in general. However, obviously, before you go out and start gambling, make sure to look into your local laws and regulations surrounding the matter!<\/p>\n<p>Oftentimes, it does also depend on the regulatory steps that the gambling platform has taken, itself - or, in other words, whether it’s regulated or not. Sticking with the CoinGames example, this particular platform is licensed with the Isle of Man Gambling Supervision Commission - thus, depending on specific circumstances, the company behind CoinGames could ask their clients to provide proof of identity, as well as any additional KYC-related information.<\/p>\n<p><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto gambling: The Isle of Man Gambling Supervision Commission.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto-gambling-07.jpg/" alt=\"Crypto gambling: The Isle of Man Gambling Supervision Commission.\" width=\"1000\" height=\"554\" \/><\/p>\n<p>Not familiar with the concept of KYC? There is a separate <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//kyc-crypto/">section about this topic - make sure to check it out!<\/p>\n<p>You could say - <strong>hey, doesn’t the whole proof of identity thing kind of negate the decentralization aspect of the entire ordeal?<\/strong> Well, no, not really - that would be a mixup between “decentralization” and “anonymity”.<\/p>\n<p>As it was established before, decentralized crypto gambling ensures that the processes taking place on the gambling platform are fair and automated - something that is easy to prove or disprove, by taking a look at the underlying public network. It’s true that <strong>some gambling platforms also support anonymity<\/strong>, as well. However, in many places around the world, these platforms aren’t legal to be used, mainly due to the potential for malicious activities to take place on them, thanks to the precise aspect in question - anonymity.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>So, to wrap things up, let’s have a quick refresher on the main points.<\/p>\n<p>Decentralized crypto gambling is <strong>very different from traditional gambling<\/strong>, mostly due to the fact that it features smart contract functionality, and is (in many cases, at least) much more transparent. Gambling services such as CoinGames are a good example of this - while there are licenses and regulations involved, you can still gamble your crypto tokens, in a decentralized manner, and without having to transfer to and keep your assets on the underlying platform.<\/p>\n<p>Obviously, you should always <strong>stay cautious when dealing with any type of crypto gambling service<\/strong> - that goes without saying. While doing research of your own, always ask yourself - is crypto gambling legal in my country? Is the platform that I’ve chosen to gamble on licensed and regulated? Are there any red flags that I should be aware of, and avoid?<\/p>\n<p>With that being said, you now know all the basics of decentralized crypto gambling. If you want to become a true crypto expert, though, be sure to study other sections in this Crypto 101 Handbook.<\/p>","definition":"Did you know that decentralized crypto gambling is very different from traditional gambling?","status":"published","meta_title":"How Does Crypto Gambling Actually Work?","meta_description":"Trying to figure out the essence of crypto gambling? Find all answers right here, including whether crypto gambling is legal or not.","meta_keywords":"crypto gambling, decentralized gambling, ethereum casino, stake crypto gambling, is crypto gambling legal, gambling crypto tokens","updated_at":"2024-03-21T10:22:23.000000Z","published_at":"2023-07-07T07:45:34.000000Z","youtube_video":{"id":54,"channel_id":1,"sort":67,"video_title":"What is Decentralized Crypto Gambling? (Animated Explainer)","description":"What is decentralized crypto gambling & is it legal?\n\nWhile gambling is a bit of a tricky topic, it\u2019s obvious that it\u2019s still a very popular form of entertainment. Being as popular as it is, naturally, the popularity does also transfer to the crypto space, as well - there are crypto gambling services popping up, seemingly every other month or so!\n\nIn this video, I will tell you about decentralized crypto gambling. We'll discuss what this type of gambling is, to begin with, as well as what makes it special and different from traditional gambling. I will also tell you about CoinGames, one of the better current examples of a decentralized crypto gambling platform.\n\nHave you ever used a crypto gambling service, or an Ethereum casino? Let me know, in the comments below!\n\nVideo Time Table:\n0:00 Introduction to What is Decentralized Crypto Gambling\n1:09 What is Crypto Gambling?\n4:01 Crypto Gambling Decentralization\n6:30 Legality of Crypto Gambling\n8:02 Wrap-up: What is Decentralized Crypto Gambling?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#CryptoGambling #DecentralizedGambling #EthereumCasino","video_id":"5D0ncGs-P-o","duration":546,"view_count":1373,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-decentralized-crypto-gambling-animated-explainer.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-03-13T15:58:30.000000Z","created_at":"2023-03-13T23:00:07.000000Z","updated_at":"2025-10-28T23:00:16.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}"
:model="{"id":429,"chapter_id":6,"order":12,"featured_image_id":3083,"youtube_video_id":56,"author_id":1,"created_at":"2023-02-27T14:49:16.000000Z","slug":"what-is-an-oracle-in-crypto","title":"Crypto Oracles: The Link Between Blockchain and Outside World Data","content":"<p>In this section, we’re going to answer the questions of what is an oracle in crypto, and how important are they in the DeFi ecosystem!<\/p>\n<p>At first glance, oracles in crypto can seem a sophisticated, and therefore, intimidating topic. In previous sections, I covered a bunch of blockchain-related subjects such as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">smart contracts<\/strong><\/a>, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-defi/">DeFi, and <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-blockchain/">blockchains themselves. <strong>Crypto oracles are where all of them interlink<\/strong>.<\/p>\n<p>You see, the world of blockchain tech relies on one, crucial aspect - information. Just like oracles were the ones who revealed seemingly unattainable information back in the old days, the modern-day crypto oracles do the very same - <strong>they keep things running by providing the latest data<\/strong>.<\/p>\n<p>In this section, we’re going to take a deep dive into the concept and practical application of crypto oracles. I’ll give you a brief introduction of what they are, then I’ll look into how they are applied in practice, and, finally, what are their drawbacks. In the end, you’ll be well aware of what they do, what makes the best crypto oracles, and how they keep the bricks of the DeFi house together!<\/p>\n<p><em>Without further ado, let’s get to it!<\/em><\/p>\n<h2>What is an Oracle in Crypto?<\/h2>\n<p>Let’s start from the very beginning - what is an oracle in crypto?<\/p>\n<p>The technical definition sounds something like this: <strong>“Oracles are entities that provide real-world data, or information, to smart contracts on blockchain networks”.<\/strong> Okay, that doesn’t sound too complex. Why do we need them, though?<\/p>\n<p>Oracles serve as a <strong>bridge between the blockchain and the outside world<\/strong>, allowing smart contracts to interact with external data sources in a decentralized (and secure!) manner. It’s thanks to them that smart contracts are able to be activated and execute actions based on verified, up-to-date, and reliable information. Best crypto oracles allow DeFi apps to run flawlessly, without the intervention and supervision of a third, centralized party.<\/p>\n<p>Okay, suddenly, things got a bit more intricate. Let's take a look at it another way. <strong>Imagine a pawn shop. <\/strong>Someone brings in a gold watch that they want to sell. Now, to avoid being scammed, the pawn shop owner needs to be aware of how to recognize real and fake gold. Then, in order to accurately evaluate its price, the owner needs to be aware of the current price of gold, and how much particular gold watches go for. Based on their knowledge and experience, the pawn shop owner immediately scans the situation, and can come up with a fair offer.<\/p>\n<p>Now, imagine if the pawn shop owner was on sick leave, and they had a random guy run the shop as a substitute. The substitute worker would have no clue about how to evaluate the gold watch. He would have to either Google things, or call the owner to consult with him. His decision would depend on an external source of information. You could say that… The substitute worker would need an oracle to accurately evaluate the deal.<\/p>\n<p><strong>Let’s turn this imaginary pawn shop into a DeFi application that runs automatically, thanks to smart contracts.<\/strong><\/p>\n<p>Smart contracts get activated when certain, predefined conditions are met. For example: <em>“if a user pays X amount of coins, the user receives Y amount of different tokens”<\/em>. If the amount is less than the required X, the smart contract is not activated; therefore, the user cannot receive anything.<\/p>\n<p>But, in order for smart contracts to run smoothly, they need a constant reminder about the state of the ongoing deal, about the value of particular coins or other assets, or the simple fact that the user is solvent, and actually has the required amount of coins or tokens in their wallet. All of these variables substitute one word: <strong>information<\/strong>.<\/p>\n<p>That’s where the crypto oracles come in. They verify all of this, and make sure that there’s no fishy business going on. And then, after all of this info gets verified, they trigger the payment, as the smart contract gets activated.<\/p>\n<h2>Different Types of Oracles in Crypto<\/h2>\n<p>By now, we have found out that the answer to the “what is an oracle in crypto?” question is that <strong>they function as a source of external, real-life information that smart contracts depend upon<\/strong>.<\/p>\n<p>It would be easy to simply find a list with all the best crypto oracles named in it. But they differ in many ways, as there are several types of oracles in crypto. What are they?<\/p>\n<p>Well, there are two main kinds, actually - <strong>software and hardware oracles.<\/strong><\/p>\n<p><strong><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an oracle in crypto: Software oracles.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-oracle-in-crypto-01.jpg/" alt=\"What is an oracle in crypto: Software oracles.\" width=\"1000\" height=\"743\" \/><\/strong><\/p>\n<p><strong>A software oracle<\/strong> is what it sounds like. An oracle in the form of a specifically designed program to run as the bridge between the blockchain and off-chain data sources. These sources can be web-based databases, and they’re used for consistent tracking of a particular variable, such as the price of an asset, real-life events, or simply web services and their prices.<\/p>\n<p>To tell it in layman’s terms, just like librarians help readers find a specific book within a large library, software oracles help smart contracts find the necessary information to validate and begin executing it themselves.<\/p>\n<p><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an oracle in crypto: Hardware oracles.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-oracle-in-crypto-02.jpg/" alt=\"What is an oracle in crypto: Hardware oracles.\" width=\"1000\" height=\"578\" \/><\/p>\n<p>Moving on to <strong>hardware oracles<\/strong>. Once again, it’s all in the name. Unlike software oracles, hardware oracles aren’t simply computer programs. They are hardware devices. They operate in physically isolated environments, therefore, they are less accessible to hackers, or other actors guided by malicious intents. This aspect makes hardware oracles stronger and more resilient in terms of security. Their purpose remains the same - to securely transfer data into a blockchain.<\/p>\n<p>So, to sum up, the key difference between hardware and software oracles is <strong>the level of security they provide to a blockchain<\/strong>.<\/p>\n<h2><span style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\">Practical Use Cases of Oracles<\/span><\/h2>\n<p><span style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\">Furthermore, let’s concentrate on something practical - <strong>let’s move on from the question “what is an oracle in crypto?”, and talk about what they do<\/strong>. Specifically, what are the practical use cases of crypto oracles? Let’s zoom in on a specific example - <strong>Chainlink<\/strong>, the decentralized blockchain oracle network. As of writing, it’s the most popular oracle in the entirety of DeFi. It’s also the perfect example of a software oracle.<\/span><\/p>\n<p>Here’s what it does. Whenever traders engage in buying, selling, or trading coins and tokens, in order for trades to be executed, the smart contract needs to be updated with the latest information about the actual value of a particular coin. For example, whenever a trader is about to make a swap from <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">ETH to the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-usd-coin-usdc/">USDC stablecoin on a DEX, a decentralized exchange, the oracle is the mechanism behind precise and reliable price evaluations.<\/p>\n<p>Besides, if you feel like your knowledge about <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-stablecoins/">stablecoins or <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//dex-vs-cex/">DEXs needs updating, be sure to check dedicated sections to these topics covered in this Crypto 101 Handbook! Now, let’s cement it: <strong>oracles in crypto are the tools that keep the network fresh and up-to-date with constant updates about how much a particular coin is valued every moment<\/strong>.<\/p>\n<p><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an oracle in crypto: Supply chain management.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-oracle-in-crypto-03.jpg/" alt=\"What is an oracle in crypto: Supply chain management.\" width=\"1000\" height=\"644\" \/><\/p>\n<p>Furthermore, another crypto oracle use case is <strong>supply chain management<\/strong>. Think of an oracle as a GPS device. Just like it tracks the movement of a person, or a car, or a shipment, so does an oracle track the status of transactions of data, be it money, staking, swaps, or whatever, on the blockchain. Whenever a significant change takes place, the oracle gets updated, and sends out the signal to the blockchain.<\/p>\n<p>In addition to these use cases, one more interesting example could be added: <strong>gaming<\/strong>. Think of it this way – as gamers continue playing games and climbing up the leaderboard, an oracle tracks the results and updates smart contracts on the blockchain with the latest achievements, progress, and stats.<\/p>\n<h2>Challenges and Risks<\/h2>\n<p>Now, no one’s perfect in this world. Oracles aren’t an exception, and even if you made a “best crypto oracles” list, you’d still find drawbacks with almost every one of them.<\/p>\n<p><strong>The main challenge that arises from using oracles is ensuring that the data they bring in is accurate and reliable<\/strong>. Instead of tampering with the oracles, attackers can manipulate the sources that oracles gather their data from. If the primary information point is compromised, the oracle will automatically transfer altered data to the blockchain.<\/p>\n<p><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an oracle in crypto: \" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-oracle-in-crypto-04.jpg/" alt=\"What is an oracle in crypto: \" width=\"1000\" height=\"676\" \/><\/p>\n<p>Whenever an oracle relies on a single source of data, the risk gets high. This is where the term a <strong>Single Point of Failure (SPOF)<\/strong> comes in. It happens when there is a single point or entity that controls the oracle, and it gets compromised, thus hurting the trustless and decentralized nature of the blockchain.<\/p>\n<p>A real-life SPOF example occurs when a power grid goes down because of a failure in a single power station. Just like a power grid, a blockchain network needs multiple sources of data to function properly. An SPOF oracle would mean that the network relied on a single point of informational input that got affected.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>To conclude, oracles are like messengers of the crypto world, bridging the gap between the decentralized blockchain network and the traditional world of data and information. <strong>They enable smart contracts to access and use data from the outside world, making them a crucial component of the crypto ecosystem.<\/strong><\/p>\n<p><strong><img loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is an oracle in crypto: Conclusion.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what-is-an-oracle-in-crypto-05.jpg/" alt=\"What is an oracle in crypto: Conclusion.\" width=\"1000\" height=\"654\" \/><\/strong><\/p>\n<p>From DeFi to supply chain management and gaming, oracles have a wide range of use cases that are revolutionizing the way we interact with data in a fast, reliable, and decentralized manner.<\/p>\n<p>However, with great power comes great responsibility. It's important to keep in mind the <strong>challenges and risks associated with oracles<\/strong>, and to implement measures to mitigate them. These challenges mainly consist of ensuring the accuracy and reliability of the data, avoiding the “Single Point of Failure” issue, and setting up enough barriers and protection from malicious manipulation.<\/p>\n<p>So, whether you're a crypto enthusiast, a blockchain developer, or simply someone who's curious about the future of technology, being able to answer the question of “what is an oracle in crypto?” is essential.<\/p>","definition":"Did you know that oracles serve as the equivalent of messengers in the world of cryptocurrencies?","status":"published","meta_title":"What is an Oracle in Crypto?","meta_description":"Wondering what is an oracle in crypto? You're in luck because you'll find everything about oracles, including the best crypto oracles here!","meta_keywords":"what is an oracle in crypto, crypto oracle list, best crypto oracles","updated_at":"2024-03-21T10:18:09.000000Z","published_at":"2023-07-07T07:45:32.000000Z","youtube_video":{"id":56,"channel_id":1,"sort":65,"video_title":"What Are Oracles in Crypto? (Beginner Friendly Animation)","description":"What are cryptocurrency oracles?\n\nThe best crypto oracles are where blockchains, smart contracts, and cryptocurrencies connect. It\u2019s an essential element of the DeFi ecosystem. If you\u2019re not familiar with crypto oracles, it\u2019s crucial to change that!\n\nIn this video, I will explain what is a crypto oracle, and what role they play in the DeFi space! We\u2019ll talk about their differences, what are their practical applications, and what\u2019s their weakest point. After watching this video, crypto oracles will no longer be a mystery for you.\n\nDo you think oracles are an important part of crypto? Make sure to share your insights in the comments below the video!\n\nVideo Time Table:\n0:00 Introduction to What Are Oracles in Crypto\n1:13 What are Cryptocurrency Oracles?\n3:41 Different Types of Oracles in Crypto\n5:10 Crypto Oracle Use Cases\n6:51 Challenges & Risks\n7:54 Wrap-up: What Are Oracles in Crypto?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#WhatAreOraclesinCrypto #Chainlink #OracleNetworks","video_id":"1s6Qc7qexBo","duration":550,"view_count":799,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-are-oracles-in-crypto-beginner-friendly-animation.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-03-30T14:40:37.000000Z","created_at":"2023-03-30T23:00:09.000000Z","updated_at":"2025-10-28T23:00:16.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}},"featured_image":{"id":3083,"uuid":"6d330b7a-fe60-4b02-ba20-39c296ef89a2","user_id":null,"name":"what-is-an-oracle-in-crypto-featured-image.jpg","url":"https:\/\/assets.bitdegree.org\/crypto\/storage\/optimized\/what-is-an-oracle-in-crypto-featured-image.jpg","path":"crypto\/storage\/optimized\/what-is-an-oracle-in-crypto-featured-image.jpg","mime_type":"image\/jpeg","disk":"s3","size":54539,"width":1024,"height":576,"custom_properties":null,"is_ai_generating":false,"created_at":"2023-06-19T06:58:40.000000Z","updated_at":"2024-07-09T13:25:11.000000Z"},"crypto_book_chapter":{"id":6,"is_updated":1,"image_url":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","image_url_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"created_at":"2024-03-29T15:17:14.000000Z","updated_at":"2024-03-29T15:17:14.000000Z","title":"dApps & Defi"}}"
:chapter-list="[{"id":1,"is_updated":null,"image_url":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","image_url_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"created_at":"2024-03-29T15:17:14.000000Z","updated_at":"2024-03-29T15:17:14.000000Z","title":"Blockchain","crypto_book_sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published"},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published"},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published"},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published"},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published"},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published"}]},{"id":2,"is_updated":null,"image_url":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","image_url_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"created_at":"2024-03-29T15:17:14.000000Z","updated_at":"2024-03-29T15:17:14.000000Z","title":"Cryptocurrencies","crypto_book_sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published"},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published"},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? The Pros & Cons","status":"published"},{"chapter_id":2,"order":4,"slug":"coin-vs-token","title":"Coin VS Token: How Do They Differ?","status":"published"},{"chapter_id":2,"order":5,"slug":"what-are-stablecoins","title":"What are Stablecoins, Altcoins & Wrapped Coins?","status":"published"},{"chapter_id":2,"order":6,"slug":"what-is-a-bitcoin","title":"Bitcoin: the Pioneer of the Crypto World","status":"published"},{"chapter_id":2,"order":7,"slug":"what-is-ethereum","title":"The Ultimate Blockchain for dApp Creation: Ethereum","status":"published"},{"chapter_id":2,"order":8,"slug":"what-is-cardano-in-crypto","title":"What is Cardano and What is It Used For?","status":"published"},{"chapter_id":2,"order":9,"slug":"what-is-shiba-inu-coin","title":"Shiba Inu: the Dogecoin Killer","status":"published"},{"chapter_id":2,"order":10,"slug":"what-is-solana-in-crypto","title":"Is Solana an Improved Version of Ethereum?","status":"published"},{"chapter_id":2,"order":11,"slug":"what-is-polkadot-in-crypto","title":"The Bridge Between Blockchains: Polkadot","status":"published"},{"chapter_id":2,"order":12,"slug":"what-is-polygon-in-crypto","title":"Polygon: the Essential Scaling Solution for Ethereum","status":"published"},{"chapter_id":2,"order":13,"slug":"what-is-luna-crypto","title":"The Bumpy Road of Terra (LUNA)","status":"published"},{"chapter_id":2,"order":14,"slug":"what-is-fantom-crypto","title":"Is Fantom (FTM) Yet Another Ethereum Killer?","status":"published"},{"chapter_id":2,"order":15,"slug":"what-is-aave-crypto","title":"Aave: Crypto Lending Trailblazer","status":"published"},{"chapter_id":2,"order":16,"slug":"what-is-algorand-crypto","title":"Did Algorand Truly Solve the Blockchain Trilemma?","status":"published"},{"chapter_id":2,"order":17,"slug":"what-is-olympus-dao","title":"Does Olympus DAO Have Anything to Do With Mythology?","status":"published"},{"chapter_id":2,"order":18,"slug":"what-is-avax","title":"Is Avalanche Network (AVAX) Rightfully Called the Future of DeFi?","status":"published"},{"chapter_id":2,"order":19,"slug":"what-is-monero-coin","title":"Monero: Where Cryptocurrency Meets Cryptography","status":"published"},{"chapter_id":2,"order":20,"slug":"what-is-ripple-xrp","title":"Is Ripple \"it\" When it Comes to Cross-Border Transactions?","status":"published"},{"chapter_id":2,"order":21,"slug":"practical-use-of-cryptocurrencies","title":"The Practical Use of Crypto","status":"published"}]},{"id":3,"is_updated":null,"image_url":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-exchanges.jpg","image_url_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-exchanges-101.jpg","rating":80,"created_at":"2024-03-29T15:17:14.000000Z","updated_at":"2024-03-29T15:17:14.000000Z","title":"Crypto Exchanges","crypto_book_sections":[{"chapter_id":3,"order":1,"slug":"how-do-cryptocurrency-exchanges-work","title":"How do Cryptocurrency Exchanges Work?","status":"published"},{"chapter_id":3,"order":2,"slug":"dex-vs-cex","title":"DEX VS CEX: Two Sides of the Crypto Exchange Industry","status":"published"},{"chapter_id":3,"order":3,"slug":"crypto-day-trading","title":"Crypto Day Trading: The Difference Between Buying, Trading, and Swapping","status":"published"},{"chapter_id":3,"order":4,"slug":"kyc-crypto","title":"KYC & AML: The Key to Complying With Legal Industry Standards","status":"published"},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published"},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published"},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published"}]},{"id":4,"is_updated":0,"image_url":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","image_url_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"created_at":"2024-03-29T15:17:14.000000Z","updated_at":"2024-03-29T15:17:14.000000Z","title":"Crypto Wallets","crypto_book_sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published"},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published"},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published"},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published"},{"chapter_id":4,"order":5,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published"}]},{"id":5,"is_updated":null,"image_url":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","image_url_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"created_at":"2024-03-29T15:17:14.000000Z","updated_at":"2024-03-29T15:17:14.000000Z","title":"NFTs","crypto_book_sections":[{"chapter_id":5,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens (NFTs)?","status":"published"},{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published"},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published"},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published"},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published"},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published"}]},{"id":6,"is_updated":1,"image_url":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","image_url_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"created_at":"2024-03-29T15:17:14.000000Z","updated_at":"2024-03-29T15:17:14.000000Z","title":"dApps & Defi","crypto_book_sections":[{"chapter_id":6,"order":1,"slug":"what-is-defi","title":"What is Decentralized Finance (DeFi)?","status":"published"},{"chapter_id":6,"order":2,"slug":"what-is-defi-2-0","title":"DeFi 2.0: The New Version of Decentralized Finance","status":"published"},{"chapter_id":6,"order":3,"slug":"what-are-dapps-in-crypto","title":"What Are dApps and How Do They Work?","status":"published"},{"chapter_id":6,"order":4,"slug":"defi-dapps","title":"Picking the Right dApps: Dos and Don'ts","status":"published"},{"chapter_id":6,"order":5,"slug":"what-is-web-3-0","title":"Web 3.0: The Future of the Internet","status":"published"},{"chapter_id":6,"order":6,"slug":"what-are-smart-contracts","title":"What is the Core Purpose of Smart Contracts?","status":"published"},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published"},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published"},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published"},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published"},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming Techniques","status":"published"},{"chapter_id":6,"order":12,"slug":"what-is-an-oracle-in-crypto","title":"Crypto Oracles: The Link Between Blockchain and Outside World Data","status":"published"},{"chapter_id":6,"order":13,"slug":"crypto-gambling","title":"The Peculiarities of Decentralized Crypto Gambling","status":"published"},{"chapter_id":6,"order":14,"slug":"what-is-the-metaverse","title":"Metaverse: A New Perception of Reality","status":"published"}]},{"id":7,"is_updated":null,"image_url":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-trading.jpg","image_url_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-trading-101.jpg","rating":80,"created_at":"2024-03-29T15:17:14.000000Z","updated_at":"2024-03-29T15:17:14.000000Z","title":"Trading & Investing","crypto_book_sections":[{"chapter_id":7,"order":1,"slug":"where-to-trade-crypto","title":"Where Can You Trade Cryptocurrencies?","status":"published"},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published"},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published"},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published"},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published"},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published"},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration Date","status":"published"},{"chapter_id":7,"order":8,"slug":"what-is-fud","title":"What is FUD: How to Use It to Your Advantage While Investing in Crypto?","status":"published"},{"chapter_id":7,"order":9,"slug":"investing-in-cryptocurrency","title":"Investing in Cryptocurrency: How to Manage Your Risks?","status":"published"},{"chapter_id":7,"order":10,"slug":"what-is-a-rug-pull-in-crypto","title":"What is a Rug Pull in Crypto?","status":"published"},{"chapter_id":7,"order":11,"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","status":"published"},{"chapter_id":7,"order":12,"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto Taxes","status":"published"}]},{"id":8,"is_updated":null,"image_url":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-analysis.jpg","image_url_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-analysis-101.jpg","rating":100,"created_at":"2024-03-29T15:17:14.000000Z","updated_at":"2024-03-29T15:17:14.000000Z","title":"Crypto Analysis","crypto_book_sections":[{"chapter_id":8,"order":1,"slug":"what-is-bullish-and-bearish","title":"Bearish and Bullish Markets: Do They Matter?","status":"published"},{"chapter_id":8,"order":2,"slug":"best-technical-analysis-indicators-for-crypto","title":"Crypto Technical Analysis Indicators You Must Know About","status":"published"},{"chapter_id":8,"order":3,"slug":"what-is-candlesticks","title":"Technical Analysis: What are Candlesticks, Trendlines, and Patterns?","status":"published"},{"chapter_id":8,"order":4,"slug":"how-to-track-new-crypto-coins","title":"Crypto Tracking: How to Track Your Favorite Coins & Tokens?","status":"published"},{"chapter_id":8,"order":5,"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","status":"published"},{"chapter_id":8,"order":6,"slug":"portfolio-diversification-definition","title":"Portfolio Diversification: The Whats, the Whys, and the Hows","status":"published"}]},{"id":9,"is_updated":0,"image_url":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-mining.jpg","image_url_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-mining-101.jpg","rating":80,"created_at":"2024-03-29T15:17:14.000000Z","updated_at":"2024-03-29T15:17:14.000000Z","title":"Mining","crypto_book_sections":[{"chapter_id":9,"order":1,"slug":"what-is-crypto-mining","title":"Crypto Mining: What It is and How Does It Work?","status":"published"},{"chapter_id":9,"order":2,"slug":"what-is-a-mining-pool","title":"Mining Pools: Is Collective Mining Better Than Solo Mining?","status":"published"},{"chapter_id":9,"order":3,"slug":"what-is-staking-crypto","title":"An Advanced Look into What is Staking Crypto","status":"published"},{"chapter_id":9,"order":4,"slug":"what-is-proof-of-stake-vs-proof-of-work","title":"Proof-of-Work VS Proof-of-Stake: The Differences That Matter","status":"published"},{"chapter_id":9,"order":5,"slug":"what-is-crypto-mining-rig","title":"Crypto Mining Rig: What It is and How to Build One?","status":"published"}]},{"id":10,"is_updated":0,"image_url":"crypto\/assets\/crypto-book\/chapters\/crypto-101-glossary.jpg","image_url_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-glossary-101.jpg","rating":100,"created_at":"2024-03-29T15:17:14.000000Z","updated_at":"2024-03-29T15:17:14.000000Z","title":"Crypto Terms","crypto_book_sections":[]}]"
current-chapter=""
current-section="what-is-an-oracle-in-crypto">
