> For the complete documentation index, see [llms.txt](https://nebula-18.gitbook.io/nebula/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nebula-18.gitbook.io/nebula/tech-overview/nebula-technology-overview/validator-based-oracle-system.md).

# Validator-Based Oracle System

## Validator-Based Oracle System

* **Decentralized Network:** Validator nodes continuously gather and verify data from multiple sources, including centralized exchanges, DeFi platforms, and crypto price indices.
* **Data Integrity:** All interactions are recorded immutably using **Distributed Ledger Technology (DLT)** to prevent tampering.
* **Delegated Proof-of-Stake (DPoS):** Validators are selected based on performance, ensuring high accuracy and low latency.

**Redundancy and Aggregation:**

* Uses a **weighted average algorithm** to combine data from multiple sources, preventing manipulation by any single provider.
* **Sharding** improves scalability by enabling parallel data processing across nodes.