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Oracle Fault Tolerance

Pronunciation
[awr-uh-kl fawlt taw-luh-runs]
Analogy
Like a backup generator that kicks in when the main power fails, ensuring continuous service.
Definition
The ability of an oracle network to continue providing accurate data despite node failures, by using redundancy, consensus thresholds, and failover mechanisms.
Key Points Intro
Oracle fault tolerance ensures data availability and correctness under node failures or attacks.
Key Points

Redundancy: Multiple nodes feed data in parallel.

Quorum: Consensus requires only a subset of nodes.

Failover: Backup nodes take over when primary nodes fail.

Monitoring: Detects failures and triggers reconfiguration.

Example
A price feed uses 7 nodes with a threshold of 4; if 3 nodes go offline, the remaining 4 still reach consensus.
Technical Deep Dive
Network uses PBFT-like rounds: nodes broadcast proposals, collect ≥f+1 matching values, and finalize. A view-change protocol rotates primary on timeout.
Security Warning
Insufficient redundancy can lead to data outages; plan for worst-case node losses.
Caveat
High redundancy increases cost; optimize node count vs reliability needs.
Related Terms
Oracle Consensus
Oracle DAO
Oracle Monitoring Dashboard
Oracle Escrow
Byzantine Fault Tolerance

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