Optimistic Oracle

What Is an Optimistic Oracle?

An optimistic oracle is an oracle where real-world data is integrated with decentralized systems (e.g. blockchains), and the data is accepted as true if it is not disputed during a certain period.

The “optimistic” design differs from a price-feed oracle, where prices are streamed on-chain without recourse or error protection.

Beyond Price-Feed Data

Because of their unique design, optimistic oracles can be used differently than price-feed oracles.

In addition to the price of an asset, they can serve arbitrary data and “long-tail” information requests that might not be feasible for price-feed oracles to support.

The optimistic oracle also protects smart contracts and users against manipulating the external data feed since incorrect data can be disputed.

This is a unique feature, as other Oracle solutions are only as secure as their data feed.