Blockchain & Cryptocurrency Glossary

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Oracle Consensus

1 min read
Pronunciation
[awr-uh-kl kuhn-sen-suhs]
Analogy
Like a panel of experts voting on a single report, oracle consensus aggregates individual node readings into one authoritative value.
Definition
A mechanism by which multiple oracle nodes agree on a single data value—such as median or weighted average—before submitting an aggregated attestation to the blockchain.
Key Points Intro
Oracle consensus aggregates multiple node inputs to produce reliable, tamper‑resistant data.
Key Points

Aggregation rule: Median, mean, or weighted scheme.

Threshold: Minimum number of node responses required.

Fault tolerance: Resilient to outlier or Byzantine nodes.

Finalization: Consensus result signed by quorum.

Example
Ten price oracles submit BTC/USD quotes; the oracle contract computes the median price and uses that for on‑chain operations.
Technical Deep Dive
Nodes push signed price reports to a coordinator contract. Contract collects ≥n/2+1 signatures, computes median via on‑chain sorting, and emits `NewPrice(uint256 price)`.
Security Warning
Sybil attacks can skew consensus; ensure identity verification and stake weighting.
Caveat
Median reduces impact of one outlier but multiple colluding nodes can still bias result.
Related Terms
Oracle DAO
Oracle Attestation
Oracle Collateralization
Oracle Slashing

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