'The Difference Between First-Party and Third-Party Oracles' by API3DAO api3 blockchain
This is the third post in our series, “Getting APIs on the Blockchain”. You need an oracle node that records data from off-chain APIs onto the blockchain. Problems arise when third-parties are used as an interface layer between APIs and the blockchain.
The addition of a “decentralized interface” creates an entirely new attack surface for blockchain applications. Groups of malicious third-party oracles can collude to manipulate outcomes — and, in fact, a single oracle can skew outcomes when performing ‘consensus” on real-valued, continuous data.
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