Oracles: The Missing Link Between Blockchains and the Real World

Oracles serve as the critical bridge between smart contracts and the real world by delivering off-chain data that blockchains can’t access on their own. As financial institutions explore tokenized products, programmable contracts, and automated settlement logic, the need for secure, verifiable external data will only increase. Understanding how oracle networks function, how they differ from traditional data infrastructure, and why they are fast becoming essential to next-generation financial products is a must. 

This Javelin Strategy & Research report also examines key use cases across lending, stablecoin audits, compliance triggers, and treasury operations where real-world inputs must drive digital outcomes. The report outlines how decentralized oracle networks work, how they ensure data integrity, and what makes them a strategic consideration for banks and networks.

Key questions discussed in this report: 

• What role do oracles play in enabling smart contracts to interact with the real world?
• How are decentralized oracle networks different from traditional data providers?
• What are the most relevant use cases for financial institutions right now? 

Companies Mentioned: 

Aave, API3, Band Protocol, Chainlink, Compound, DIA, ESPN, NBA, Pyth, UMA