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Hybrid Oracle Model

1 min read
Pronunciation
[hy-brid awr-uh-kl mod-uhl]
Analogy
Like using both crowd‑sourced traffic reports and official police data to get accurate, real‑time traffic updates.
Definition
An oracle design combining decentralized on‑chain data aggregation with centralized high‑frequency feeds to balance security, latency, and cost.
Key Points Intro
Hybrid oracles merge trustless aggregation with trusted feeds for responsive, cost‑effective data.
Key Points

Decentralized feeders: Multiple nodes vote on values.

Trusted source: Central feed for low‑latency updates.

Fallback logic: Switch between modes on anomalies.

Cost optimization: Batch decentralized votes periodically.

Example
A price oracle uses Chainlink median feeds every minute and a centralized exchange websocket for sub‑second updates, blending them in a smart contract.
Technical Deep Dive
Oracle contract implements `report()` from decentralized nodes and `fastUpdate()` from central feed. A weighted function selects data: if deviation threshold, use fast feed; else wait for aggregated median.
Security Warning
Central feed compromise can misprice feeds; enforce slashing and monitoring.
Caveat
Tuning thresholds is critical to avoid oscillations or stale data.

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