Decentralized oracles are systems that provide external data to smart contracts on a blockchain. Unlike traditional oracles, which rely on a single source of information, decentralized oracles aggregate data from multiple sources to ensure accuracy and reliability. This helps prevent manipulation and enhances trust in the data being used by decentralized applications. By using decentralized oracles, developers can create more robust and secure applications that interact with real-world events, such as financial markets, weather conditions, or sports scores. This technology plays a crucial role in the broader ecosystem of blockchain and decentralized finance (DeFi).