Résumé
Blockchain oracles can be described as intermediaries that connect blockchains to real information. Binance Oracle does this by connecting smart contracts to trusted and verified data sources. Initially designed for the BNB Chain, it could expand to other blockchains in the future. Currently, this allows every project based on the BNB Chain to use and benefit from it. With Binance Oracle, developers no longer have to worry about the data source and can focus on other important aspects of their blockchain projects.
Introduction
Blockchain oracles are an essential part of the blockchain ecosystem. Without them, smart contracts would have no way of obtaining real data. Binance Oracle is a blockchain oracle that allows smart contracts to access real-world data sources required by blockchain applications. It ensures that smart contracts have the right data at the right time.
What is a blockchain oracle?
Blockchain oracles are services that function as gateways between blockchains and the real world, allowing smart contracts to access data sources outside of their native networks. In other words, they act as a link between applications on the blockchain and data off the blockchain.
As such, off-blockchain events can be translated into on-blockchain events recognized by smart contracts. This information can be anything from token or stock prices to the results of a soccer match to weather forecasts.
Blockchain oracles can also verify whether data is accurate, although they are not data sources themselves. Instead, they are like an additional layer that collects and authenticates information and transmits it to the correct destination.
Blockchain oracles also allow individuals to use blockchains in contractual agreements. For example, you and your friend could make a bet on a football match this way: you both agree on the terms and lock your funds in a smart contract. Then, the blockchain oracle will inform the smart contract of the match result. After the match ends, the smart contract will release the funds to the winner.
There are different types of blockchain oracles, and an oracle can fall into several categories: software, centralized, decentralized, inbound, and outbound. Simply put, how a blockchain oracle works depends on the purpose for which it was created.
What is Binance Oracle?
A smart contract cannot interact with external data without assistance. It must rely on an oracle to provide the necessary information. Binance Oracle is similar to other blockchain oracles in this aspect. It is a data service offered by Binance that strives to provide reliable and secure data on the blockchain.
Binance Oracle is currently specifically designed for BNB Chain, but that doesn't mean it can't expand to other blockchains in the future. Additionally, all projects built on the BNB Chain can use its services.
The BNB Chain ecosystem will benefit from Binance Oracle in many ways. First of all, having a native blockchain oracle strengthens the reliability of blockchain data. Second, more reliable data means new possibilities for existing and future projects.
Finally, Binance Oracle can attract new developers to the BNB Chain ecosystem. It allows any developer to connect their BNB Chain-based projects to data off the blockchain, saving them the hassle of maintaining existing data, finding new sources, and risking using unreliable sources.
What solutions are proposed?
Blockchain projects need reliable data. Binance Oracle consists of four aspects that ensure the oracle is accurate, fast, and tamper-proof. Let’s dive deeper into the Binance Oracle features that connect BNB Chain to the real world.
Data sources
Binance oracle uses carefully selected data sources. This helps determine that the information is accurate and its source trustworthy. For example, Binance Oracle provides price data from multiple centralized exchanges (CEXs) and decentralized finance (DeFi) applications, and aggregates the data using a weighted average formula.
Data processing and signing
Binance Oracle has a data processing and signing feature that aims to make data tamper-proof. It has implemented a distributed signing system called threshold signing and signs the most recent data from different sources. Anyone with a public key can verify the accuracy and authenticity of a digital signature, and no one can modify the data without a set of private keys.
Data publishing
Data is published on the blockchain via multiple nodes which only publish signed information. The smart contracts that store the data are secure and verified, and the multiple nodes can adjust the frequency of data release based on different market conditions. This means that accurate data can be obtained in times of high price volatility. Multiple nodes also ensure reliable data publishing, even in the most extreme scenarios.
Data monitoring
Binance Oracle data stays up to date with an independent monitoring service that operates 24 hours a day, seven days a week. It retrieves prices from different data sources and compares them to data published on the blockchain. The Binance Oracle customer service team will intervene if a significant discrepancy is detected.
How to use Binance Oracle
If you have used blockchain applications, you probably don't need to learn how to use Binance Oracle. If necessary, developers have already connected their applications to specific data. However, if you are a blockchain developer who needs to use Binance Oracle, the official documentation will guide you step by step through its integration.
To conclude
Blockchains would have less potential and less opportunity for mass adoption without oracles, because their information would be limited to their internal data. Although blockchain oracles do not solve the problem of data availability, they can make data available outside the blockchain using external sources.
Binance Oracle allows smart contracts to connect to any confirmed data outside of its network. It uses a process to ensure that data is always correct, secure and up to date. Binance Oracle has developed four solutions to ensure that data is reliable and continuously monitored to identify potential issues.