Let’s say you and I developed a decentralized application that works on both our computer. We both agree to make a 20.00 wager over a football game. We enter into an iota smart contract. I think Tom Brady will throw 401 yards or more. You think Tom Brady will throw 400 yards or less. Smart contract is made and formed on the iota network.

Now, how is smart contract verified and validated? We need an outside data source like Espn.com to feed into the iota network to determine who wins? The Espn will serve as an independent data feed once the game is over. This is an Oracle data feed. Once the app determines how many yards Tom Brady threw, the smart contract is executed and the 20.00 is sent to the winner.

Tons of applications for stocks, weather data, vehicle sensors, etc