Binance Oracle: Enriching the BNB Chain Ecosystem
Binance Oracle is officially launching in October 2022.
Blockchain oracles are services that source, verify, and feed off-chain data to smart contracts running on the blockchain.
Binance Oracle will offer a more reliable, secure, and accurate data sourcing solution for smart contracts.
Here's all you need to know about the new Binance Oracle that allows smart contracts to access data outside of their native blockchain networks.
Binance is officially launching its oracle service in October 2022. As oracles – data bridges between distributed ledgers and the outside world – are becoming increasingly central to the blockchain ecosystem, there couldn’t be a better time for Binance to unveil its reliable and secure blockchain data service. Keep reading to learn more about the structure and functions of Binance Oracle.
What Is a Blockchain Oracle?
To understand Binance Oracle, one must first understand what a blockchain oracle is. Blockchain oracles are services that allow smart contracts to access data from sources that can be found outside their native networks. In other words, an oracle is a bridge between the blockchain and the real world. These services can help smart contracts access outside data and execute based on off-chain inputs.
The data could be virtually anything, from price information to weather reports. Oracles can also be bi-directional, meaning that users can both receive data from the outside and send data out in the opposite direction. Keep in mind that an oracle is merely a channel for data to travel rather than a data source itself.
Why Has Binance Entered the Oracle Field?
Binance sees tremendous opportunities within the field of blockchain oracles and believes that contributing to this sector will allow the BNB Chain ecosystem and the larger digital asset space to flourish for the benefit of users. Oracles can serve as the foundation of Web3, reliably providing smart contracts that power a vast array of use cases with the necessary real-world data.
Binance Oracle will support multiple blockchain partners within the BNB Chain ecosystem, becoming yet another stepping stone on Binance’s path to the role of the leading infrastructure services provider for the digital asset industry.
What Exactly Is Binance Oracle?
Binance Oracle is designed to help smart contracts that require off-chain data inputs to execute. Purpose-built specifically for the needs of DeFi applications, Binance Oracle will feed data to the blockchain reliably and securely.
Binance Oracle components
Initially, Binance Oracle will support index prices for the most popular digital assets. To do that, it will rely on a combination of 5 robust components:
Sourcing price data from numerous CEXs and aggregating them using a proprietary formula.
Utilizing in-house TSS (Threshold Signature Scheme) to sign on individual data feeds.
Feeding the latest index price to on-chain oracle using a flexible time window and price deviation.
Providing easy-to-use interfaces to on-chain DApps.
Providing perpetual monitoring and instant reaction on a 24/7 basis.
One of Binance Oracle's strengths is its Threshold Signature Scheme, which is applied to each data feed in a distributed signing process, ensuring that there is no single point of failure in the system's data security. The authenticity of the data is also continuously verified using the Binance public key, thus ensuring that data is not tampered with during the feeding process.
Another benefit that Binance Oracle offers is its high availability. First, multiple top exchanges are handpicked, with smart algorithms ensuring the index price’s accuracy. This means that you will be able to access the best sources in real time. The architecture of Binance Oracle’s components ensures that the system can continuously provide data in any extreme scenario. The complete infrastructure of Binance Oracle will be deployed in each region, aiming for immunity from region-wide outages and disasters.
Binance Oracle has already onboarded 10 BNB Chain projects, including Venus, Alpaca, SpaceID, Unilend, Deri, Ankr, Corite, Ultiverse, and Beefy to its early-bird program. The blockchain data service is looking to serve more Web3 teams and users with the addition of flexible customization.
Blockchain oracles play an immensely important role in the blockchain ecosystem, bringing external data onto the chain. Launching in October 2022, Binance Oracle will bring security, reliability, and efficiency into this sector of BNB Chain infrastructure services. It will enable smart contracts to connect to verified data sources, ensuring that the data is consistently correct, reliable, and up-to-date. The service can also be expanded to more blockchains in the future. Head to Binance Oracle to explore more today!
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