Auditability of Price Feeds

Auditability of Price Feeds is the capability for external parties to verify that the data provided by an oracle is accurate, timely, and derived from the stated methodology. This requires that all steps in the data pipeline, from source to smart contract, are recorded on a ledger or in an accessible format.

In the context of derivatives, auditability allows users to trust that the settlement price was not manipulated. It involves keeping a historical record of all data points and the logic used to filter or aggregate them.

High auditability is a prerequisite for regulators and institutional users who require proof of compliance and integrity. By making the data flow transparent and verifiable, protocols can build trust with their users.

It is a critical feature for any system that handles financial value.