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Oracles are middleware layers that act as a bridge between a blockchain and information in the real world. They are used to provide external data to smart contracts, which can be used in various applications such as decentralized finance (DeFI), supply chain management (SCM), gaming and entertainment. Oracles can be centralized or decentralized, with centralized oracles relying on a single entity to collect and validate external data, and decentralized oracles using a network of independent nodes to perform the same functions.
