FAQ About Smart Contracts

Smart Contracts
one year ago | alfred

Can smart contracts interact with external data sources or APIs?

Yes, smart contracts can interact with external data sources or APIs through a process known as "oracle integration". An oracle is a trusted third-party service that provides external data to the smart contract. Oracles can retrieve data from a wide range of sources, such as web APIs, databases, and even physical sensors.

To interact with an external data source, a smart contract typically sends a request to an oracle, which then retrieves the data and sends it back to the smart contract. The smart contract can then use this data to make decisions or execute its logic.

However, it's important to note that oracle integration introduces potential security risks, as the oracle can potentially provide malicious or incorrect data to the smart contract. Therefore, it's crucial to use reputable and trusted oracles and to implement security measures to mitigate the risk of oracle-based attacks.