The stable operation of on-chain ecosystems ultimately depends on one thing—trustworthy and reliable data.

Smart contract code can run perfectly, with no logical bugs, but if there is a lack of reliable external data sources, everything is like groping in the dark. Even the smartest contracts cannot make correct decisions. This pain point is the core challenge that many blockchain projects aim to solve.

Oracles are the answer to this problem. They are not just simple data carriers but establish a trust bridge between the real world and on-chain logic.

Why does the DeFi ecosystem care so much about data integrity? Because DeFi is never isolated. The entire ecosystem relies on three main pillars working together—trusted data input, correct execution of smart contracts, and secure asset transfer. Missing any one of these links can cause problems in the entire system. Especially in applications like lending, trading, and derivatives, which are highly sensitive to data, the accuracy of data directly impacts fund security and market pricing fairness.

This is also why oracle services have become a foundational infrastructure in DeFi.