Summary
A blockchain oracle can be said to be an intermediary that connects the blockchain with real-world information. Binance Oracle does this by connecting smart contracts with trusted and verified resources. Binance Oracle was originally designed for BNB Chain and has the potential to expand to other chains in the future. Currently, Binance Oracle allows every project on the BNB Chain to use and benefit from it. With Binance Oracle, developers no longer have to worry about data issues and can focus on other important aspects of their blockchain projects.
Introduction
Blockchain oracles are an important component of the blockchain ecosystem. Without it, smart contracts would have no way to obtain real-world data. Binance Oracle is a blockchain oracle that enables smart contracts to access real-world data sources required by blockchain applications. Binance Oracle ensures that smart contracts have the right data at the right time.
What is a blockchain oracle?
Blockchain oracles are services that serve as a bridge between the blockchain and the real world allowing smart contracts to access data sources outside the native network. In other words, oracles function as a link between on-chain applications and off-chain data.
That way, off-chain events can be conveyed into on-chain events that can be recognized by smart contracts. This information can be anything from token or share prices to football match results or weather forecasts.
Blockchain oracles can also verify the accuracy of data, even if they are not the source of the data themselves. The data is like an additional layer that collects and authenticates information, then sends it to the correct destination.
Blockchain oracles also allow people to use blockchain in contractual agreements. For example, you and your friend can bet on a football match this way: first, you both agree to the terms, then lock the funds in a smart contract. Second, the blockchain oracle will notify the smart contract of the match results. Finally, after the match ends, the smart contract will release funds to the winning bet.
There are different types of blockchain oracles. A single oracle can fall into several categories: software, centralized, decentralized, inbound, and outbound oracles. In essence, the way a blockchain oracle operates depends on the purpose for which it was created.
What is Binance Oracle?
Smart contracts cannot interact with external data without help. Smart contracts rely on oracles to provide them with the necessary information. Binance Oracle is similar to other blockchain oracles in this aspect, namely a data service offered by Binance that aims to provide reliable and secure on-chain data to the blockchain.
Binance Oracle is currently built specifically for BNB Chain, but that doesn't mean it can't be expanded to other chains in the future. Additionally, all projects built on BNB Chain can use its services.
The BNB Chain ecosystem benefits from Binance Oracle in many ways. First, by having a native blockchain oracle, the reliability of blockchain data becomes stronger. Second, more reliable data will generate new possibilities for old and new projects.
Lastly, Binance Oracle can attract new developers to the BNB Chain ecosystem. Binance Oracle allows developers to connect their BNB Chain-based projects to off-chain data, saving them the hassle of managing existing data, finding new sources, and taking the risk of using unreliable data.
What solutions are offered?
Blockchain projects depend on reliable data. Binance Oracle consists of four aspects that ensure that the oracle is accurate, timely, and tamper-proof. Let's dive into the Binance Oracle features that connect BNB Chain to the real world.
Data source
Binance Oracle uses carefully selected data sources. This helps in determining that the information is accurate and the source is trustworthy. For example, Binance Oracle gets price data from several centralized exchanges (CEX) and decentralized finance (DeFi) applications, then combines the data using a weighted average formula.
Data processing and signing
Binance Oracle has data processing and signing features aimed at making data tamper-proof. Binance Oracle has established a distributed signing system called Threshold Signature Scheme and signs the latest data from various sources. Anyone with the public key can verify the accuracy and authenticity of the digital signature. No one can change the data without a set of private keys.
Data publication
Data is published on the blockchain via multi-nodes that publish only signed information. Smart contracts that store data are secure and audited. Multi-nodes can adjust data publishing frequency based on varying market conditions. This means that accurate data can be obtained during times of high price volatility. Multi-node also ensures reliable data publishing, even in the most extreme scenarios.
Data monitoring
Data on Binance Oracle is continuously updated with an independent monitoring service operating 24 hours a day, seven days a week. The service takes prices from various data sources and compares them to published blockchain data. The Binance Oracle support team will intervene if significant irregularities are detected.
How to use Binance Oracle
If you're already using blockchain applications, you probably don't need to learn how to use Binance Oracle. If necessary, developers already connect their applications to specific data. However, if you are a blockchain developer who needs to utilize Binance Oracle, the official guide will walk you through its integration process step by step.
Closing
The potential and likelihood of mass adoption will be lower for blockchains without oracles, as the information will be limited to internal data. While not solving the data availability problem, blockchain oracles can provide off-chain data on-chain using external sources.
Binance Oracle allows smart contracts to connect to all confirmed data outside its network. Binance Oracle uses processes to ensure that data is consistently correct, secure, and up-to-date. Binance Oracle has developed four solutions to ensure that data is reliable and continuously monitored to track possible problems.