Most Web3 developers know that security should be their top priority. However, many are unaware that the process of securing a smart contract extends to include a critical component for any use case that requires data or computation outside of a blockchain—the oracle.
Integrating off-chain data inputs within a smart contract greatly expands the realm of possibility for dApp developers but also adds security concerns; your smart contract now has to rely on data provided by an oracle to execute its functions. Even when the other components of your smart contract meet the most rigorous standards of security, if an entity can tamper with the data input or the data isn’t delivered in a secure and timely manner, you can run into serious problems—and your entire contract might be at risk. Your smart contract is only as strong as its weakest link, and any breach can have serious negative consequences.
Poor oracle security can expose your smart contract to a wide range of potential exploits and hacks. That’s why the quality of data inputs and the security of the oracle mechanism delivering them on-chain are integral to the security of any decentralized application.
With this in mind, it’s clear that choosing the right blockchain oracle is crucial to the security of your project. In this guide, we lay out five key security risks to look out for when choosing a blockchain oracle—and the right oracle infrastructure can help mitigate these risks.