What is Binance Oracle?

Binance Academy · 2023-01-09T14:00:27.000Z

Summary It can thus be compared to an intermediary that connects blockchain and real-world information. Connect smart contracts with verified and trusted data sources. Binance Oracle was originally designed for BNB Chain and may be expanded to other chains in the future. Currently, all projects built on BNB Chain can use and benefit from Binance Oracles. With Binance Oracle, developers no longer need to worry about data issues and can instead focus on other important aspects of their blockchain projects. Introduction Blockchain oracles are an important part of the blockchain ecosystem. Without oracles, smart contracts would not be able to access any real-world data. As a blockchain oracle, Binance Oracle enables smart contracts to access the real-world data sources required by blockchain applications, ensuring smart contracts get the right data at the right time.

Summary
Therefore, it can be likened to an intermediary that connects blockchain with real-world information. Connect smart contracts with verified and trusted data sources. Binance Oracle was originally designed for BNB Chain and may be expanded to other chains in the future. Currently, all projects built on BNB Chain can use Binance Oracle and benefit from it. With Binance Oracle, developers no longer need to worry about data issues and can focus on other important aspects of their blockchain projects.
IntroductionBlockchain oracles are an important part of the blockchain ecosystem. Without oracles, smart contracts will not be able to obtain any real-world data. As a blockchain oracle, Binance Oracle enables smart contracts to access the real-world data sources required by blockchain applications, ensuring that smart contracts obtain the right data at the right time.
What is a blockchain oracle?Blockchain oracle services are the bridge between blockchain and the real world, allowing smart contracts to access data outside of their native network. In other words, they act as a link between on-chain applications and off-chain data.
Therefore, off-chain events can be expressed as on-chain events that smart contracts can recognize. This information can come from all aspects of daily life, from token or stock prices to football match results and even weather forecasts.
Blockchain oracles can also verify that data is accurate, although they are not the source of the data themselves, but rather act as an additional layer that collects and verifies information and transmits it to the correct destination.
In addition, blockchain oracles can be used in contractual agreements. For example, you and your friends can place a bet on a football match in this way: first, you both agree on the terms and lock the bet funds in a smart contract. Then, the blockchain oracle informs the smart contract of the result of the match. Finally, when the match is over, the smart contract releases the funds to the winner of the bet.
Blockchain oracles can be classified into several different types, including software oracles, centralized oracles, decentralized oracles, input oracles, and output oracles. Essentially, how a blockchain oracle works depends on the purpose for which it is built.
What is Binance Oracle?Smart contracts rely on oracles to deliver the necessary information to them. Without the help of oracles, smart contracts will not be able to interact with external data. In this respect, Binance Oracle is similar to other blockchain oracles - it is a data service provided by Binance, dedicated to providing reliable and secure on-chain data for blockchains.
Binance Oracle is currently built for BNB Chain, but may be applied to other blockchains in the future. In addition, all projects built on BNB Chain can use Binance Oracle services.
The BNB Chain ecosystem benefits from Binance Oracle in many ways. First, as the native blockchain oracle of BNB Chain, Binance Oracle improves the credibility of its blockchain data. Second, the data provided by Binance Oracle is more reliable, bringing new possibilities to new and old projects.
Finally, Binance Oracle can attract new developers to join the BNB Chain ecosystem. With Binance Oracle, any developer can connect their BNB Chain-based projects to off-chain data, saving the trouble of maintaining existing data and mining new data sources, while avoiding the risk of using unreliable data.
What solutions does Binance Oracle provide?Blockchain projects often rely on reliable data. Binance Oracle consists of four aspects to ensure that its data services are accurate, timely, and immutable. Below we will take a closer look at the functions of Binance Oracle that connect BNB Chain to the real world.
Data SourcesBinance Oracle uses carefully selected data sources to ensure the accuracy and trustworthiness of the information. For example, Binance Oracle obtains price data from multiple centralized exchanges (CEX) and decentralized finance (DeFi) applications and aggregates this data using a weighted average formula.
Data processing and signingBinance Oracle has data processing and signing capabilities to prevent data from being tampered with. It uses a distributed signature system called a threshold signature scheme to sign the latest data from different sources. Any public key holder can verify the accuracy and authenticity of the digital signature, but in order to change the data, a set of private keys must be available.
Data ReleaseData is published on the blockchain through multi-nodes that only publish signed information. The smart contracts that store data are secure and audited, and multi-nodes can adjust the frequency of data release according to different market conditions. This means that during periods of high price volatility, smart contracts can still obtain accurate data. Multi-nodes can ensure the reliability of data release even in the most extreme situations.
Data MonitoringBinance Oracle's independent monitoring service operates 24/7 to ensure real-time data updates. It obtains price data from different data sources and compares it with published blockchain data. If significant data deviations are detected, the Binance Oracle customer service team will intervene.
How to use Binance OracleIf you have already used blockchain applications, you may not need to learn how to use Binance Oracles, as developers have already connected their applications to specific data if necessary. However, if you are a blockchain developer who needs to use Binance Oracles, you can refer to the official manual to step through the oracle integration process.
SummarizeWithout oracles, the information source of the blockchain will be limited to its internal data, and its potential and possibility for widespread use will be greatly reduced. Although blockchain oracles do not solve the data availability problem, they can use external data sources to transmit off-chain data to the chain.
Binance Oracle enables smart contracts to connect to all confirmed data outside of its network, and its operational processes ensure that data is always accurate, secure, and updated in real time. Binance Oracle has developed four solutions to ensure that data is accurate and reliable, and is always under monitoring and can be resolved in a timely manner when problems arise.