Decentralized Oracles in Betting

Decentralized Oracles solve the **Oracle Problem**—blockchains' inability to see real-world data—by replacing the bookmaker's authority with cryptographic truth. The sector has evolved from slow, reputation-based voting (Augur) to two dominant models: **Decentralized Oracle Networks (DONs)** like Chainlink, which aggregate API data for speed but at high cost, and **Optimistic Oracles** like UMA, which assume data is correct subject to a dispute window, prioritizing cost-efficiency over immediate settlement. This technology is the backbone of **DeFi Betting**, enabling permissionless markets where the "House" is replaced by code, though it currently struggles to support the low-latency demands of **In-Play Betting**.