# Oracles

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Oracles act as trusted intermediaries between the blockchain and the real world. They enable smart contracts to fetch real-time data, such as asset prices, weather conditions, or API feeds. In SFI, oracles aggregate data from multiple sources to ensure accuracy and minimise manipulation risks. For instance, a DeFi vault might need real-time financial data from a data centre to update its performance metrics.

To maintain trustlessness, oracles cryptographically verify the data they fetch before relaying it to the blockchain. This guarantees that the information driving smart contract execution is both accurate and tamper-proof, making oracles indispensable in applications like DeFi and RWA tokenisation.

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