Blockchain cannot connect with the real world.

Then how does it get real-world updates?

Through Oracles.

Oracles act as a bridge between the blockchain and the real world, allowing smart contracts to execute based on real-world information.

However, some oracles rely on centralized entities to provide data, which can lead to problems like single points of failure and data manipulation.

To fix this, there are decentralized oracle networks that gather information from multiple sources and oracles before delivering it to smart contracts.

One project that does this is Chainlink.

Chainlink price feed determines prices from three layers:

Data source aggregation: This is where the price feed collects information from different exchanges, both decentralized and centralized.

Node operator aggregation: This is where a group of node operators within Chainlink gather information from multiple independent data aggregators and take the median value.

Oracle network aggregation: This is where all the nodes in the oracle network work together to create a single, accurate data point on the blockchain.

[Not financial advice]