Invalid Data Handling

Invalid Data Handling refers to the logic implemented within a smart contract to identify and reject corrupted, malicious, or illogical price data from an oracle. This includes checking for extreme outliers, verifying that the data is signed by authorized sources, and ensuring that the price is within a reasonable range.

If the received data fails these validation checks, the contract will ignore the update and potentially trigger a warning or enter a safe mode. Robust invalid data handling is essential for protecting a protocol against oracle manipulation attacks or technical glitches in the oracle network itself.

It is a fundamental aspect of writing secure smart contracts for financial applications.