Outlier Filtering

Outlier filtering is the process of identifying and removing extreme or erroneous data points from a set of reports. In an oracle network, one or more nodes might report a price that is significantly different from the rest.

This could be due to a technical error or a malicious attempt to skew the data. Filtering algorithms compare each report against the aggregate and exclude those that fall outside a defined range.

This keeps the final price stable and prevents anomalous data from impacting smart contracts. Effective filtering is a key component of robust oracle design.

It ensures that the system remains reliable even when individual nodes fail or act dishonestly.