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Oracle Escrow

Pronunciation
[awr-uh-kl es-kroh]
Analogy
Like an escrow account in real estate that holds buyer funds until the closing conditions are met.
Definition
A smart contract that holds funds or collateral deposited by oracle consumers and releases payments to oracle nodes upon successful data delivery or according to SLA conditions.
Key Points Intro
Oracle escrow contracts automate payment and reward distribution based on data delivery conditions.
Key Points

Deposit: Consumers pre-fund escrow with tokens.

Release triggers: On receipt of valid attestation events.

Dispute handling: Holds funds during challenge periods.

Refund: Returns unused funds if data not delivered.

Example
A dApp deposits 1,000 LINK into an escrow contract; each price update by the oracle releases 10 LINK to the node.
Technical Deep Dive
Escrow contract stores `deposits[consumer]`. On `submitAttestation()`, it verifies signature, transfers fee to `msg.sender`, and retains remainder. If no attestation by deadline, consumer can `withdraw()`.
Security Warning
Bugs in escrow logic can lock consumer funds; audit carefully.
Caveat
Escrow increases on-chain complexity and gas costs.
Related Terms
Oracle Fee Model
Oracle SLA Enforcement
Oracle Attestation
Oracle Collateralization
Dispute Resolution Mechanisms

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