Clear DefinitionsData Source Node
1 min read
Pronunciation
[day-tuh sawrs nohd]
Analogy
Like a weather station that measures temperature and humidity and reports it to a central forecast service.
Definition
A network participant—often an oracle node—that collects, validates, and publishes external data to blockchain smart contracts.
Key Points Intro
Data source nodes bridge off‑chain data into on‑chain environments.
Key Points
Data ingestion: Connects to APIs, sensors, or databases off‑chain.
Validation: Applies sanity checks and consensus among peer nodes.
Publishing: Submits signed transactions or messages to smart contracts.
Redundancy: Multiple nodes ensure fault tolerance and reliability.
Example
Chainlink oracle nodes fetch ETH/USD from multiple exchanges, aggregate the values, and submit the median price on‑chain every minute.
Technical Deep Dive
Node software uses gRPC or REST clients to pull data, then runs threshold cryptography (t-of-n signing) to jointly sign a data packet. The signed packet is sent via JSON‑RPC `submitOracleData()` to the aggregator contract.
Security Warning
Compromise of node private keys can lead to false data injection; use HSMs and rotate keys regularly.
Caveat
Node operators face infrastructure and compliance burdens; automated management tools are recommended.
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