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Quick Summary:

  • Blockchain oracles are essential for building decentralized applications (dApps) for gaming and gambling
  • It is important for smart contracts to use blockchain oracles, since they provide an unbiased source of data, randomness, and automation

Many of the Web3 applications that exist today would not exist without blockchain oracle services like Chainlink. Those services are essential to many DeFi applications.

Related: Chainlink is Better than its Competitors: Former Google CEO

Most Web3 apps would not be possible without blockchain oracles, the least appreciated component of Web3 infrastructure. Blockchain smart contracts are blind to the outside world and require input to operate properly. Many smart contracts can function with internal logic and not require off-chain data. Others on the other hand have more advanced use cases that require off-chain data to operate.

If conditions are met, smart contracts must either call their own functions or other smart contracts to trigger automated event. Decentralized applications (dApps) for gaming and gambling cannot be built without relying on potentially biased or predictable randomness sources. That is because blockchains are unable to generate truly random numbers.

Blockchain oracles help with that. Among the most common oracles are cryptocurrency price feeds. Random number generation, and smart contract automation, which are decentralized and unbiased services, provide off-chain data to on-chain smart contracts. It utilizes decentralized network of nodes to provide data feeds independently. This was happening in exchange for LINK tokens during the crypto bear market of 2018. Since most DeFi dApps rely on cryptocurrency price feeds and real-world data to operate, Chainlink became the backbone of Decentralized Finance.

How Are Oracles Used In dApps?

Using Chainlink’s Verifiable Random Function (VRF), self-running crypto casinos can operate without a ‘house edge,’ and the same product also powers many Web3 Play-To-Earn (P2E) games. Crypto gaming also enjoys fair odds of random number generation, provided by an impartial, decentralized source, thanks to the Verifiable Random Function (VRF). Crypto gambling is usually (but not always) fair to its players thanks to VRF. There are many DeFi lending and borrowing applications that require non-crypto price feeds and event reports for their operation, and many use cryptocurrency and NFT price feeds for determining when to trigger a liquidation call on a borrower. Additionally, Chainlink Automation automates smart contract activation when conditions are right for outside events, eliminating the need to use a bot running on a centralized server.

It is important for smart contracts to use blockchain oracles. That is because they provide an unbiased source of data, randomness, and automation. It is possible to build a number of powerful and new apps and dApps. That would not otherwise be possible if Chainlink provided real-world data to the blockchain.


Chainlink continues to expand its Web3 product offerings and influence is becoming an integral component of many DeFi and CeFi applications.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.