The word Oracle serves as a mediator between two different persons from entirely different parts.

As for i know , oracle has origin in Greek mythology which used to mediate information between people and gods.

This means that a blockchain oracle serves as a link between the off-chain (real life) and the on-chain (virtual world).

Yes that's right. Whatever is the directions of transfer of data , link is there .

When data is captured by the hardware Oracle, it is converted and sent to the blockchain in a language the blockchain understands.

You have described oracle types comprehensively. I believe hardware oracles may b expensive and difficult to operate but more secure than software oracles . Is it so ?

Good luck