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Alea Research

RedStone OraclesRedStone Basics

A 5-module primer on oracles and RedStone's modular design, modes, data flow, and security—5–10 minutes total.

Module 1 of 5

Oracles, in plain English

Why oracles exist

Blockchains are sealed boxes. They can't "google" prices, weather, or FX rates. An oracle is the courier that brings dependable real-world data to a smart contract—safely and on time. Without it, lending, perps, insurance, and RWAs don't work.

What "good" looks like

A good oracle is three things at once: accurate (from diverse sources), timely (fresh when it matters), and cost-efficient (low gas overhead). If any one of the three fails, DeFi's risk shoots up.

Mental model

Think of a vending machine (the contract) that only dispenses if the weight and price match. The oracle is the scale + barcode scanner. It doesn't decide policy; it just provides facts the machine can trust.

Where the risks are

Errors can come from bad sources, slow updates, or manipulation on-chain. Designs differ in how they collect, verify, deliver, and pay for data—those choices define reliability.

💡 Visual idea: "Courier" diagram—Off-chain data → Oracle → Smart contract.