Oracles are an essential part of Web3 technology because they give decentralised networks a means of obtaining data from outside sources.

Since all data is kept on the network in a decentralised system like a blockchain, fewer kinds of applications may be able to be developed.

Oracles offer a means of integrating external data into the network, increasing the potential applications that can be developed.

Oracles function by establishing connections between the decentralised network and external data sources, such databases, online services, and APIs.

This enables real-time data access and decision-making for smart contracts.

An oracle might be used, for instance, to set off a smart contract in response to a specific event, such a commodity's price hitting a predetermined level.

Oracles present a number of difficulties, including making sure the data they supply is accurate and dependable.

But as the Web3 ecosystem grows, fresh ideas for dealing with these issues are starting to surface.

To verify data accuracy and provide redundancy, for instance, several projects are investigating the usage of numerous oracles.

All things considered, oracles are essential to Web3 technology's ability to access external data and increase the variety of applications that may be developed on decentralised networks.

Oracles are expected to grow in importance as a tool for both developers and users as the Web3 ecosystem develops.