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Launch of the Binance Oracle Network for the BNB Chain Ecosystem
A new service called Binance Oracle, which will source, validate, and feed off-chain data to smart contracts running on the BNB Chain, was unveiled by cryptocurrency juggernaut Binance on October 26. According to the business, the Oracles will give smart contracts “a more dependable, secure, and accurate data sourcing solution.” Existing Web3 dApps and BNB Chain partners will be able to access Oracle data sources thanks to the new service, which goes live this month. More than ten projects have already been integrated with the Binance Oracle network, according to the business.
Blockchain oracles can be compared to intermediaries that link blockchains to information in the real world. Binance Oracle accomplishes this by integrating smart contracts with reliable data sources. It was first created for the BNB Chain, but it might eventually include other chains as well. Currently, this makes it possible for every BNB Chain-based project to use and gain from it. With Binance Oracle, developers can focus on other crucial facets of their blockchain projects without having to worry about data issues.
According to Binance, the index prices for the most well-liked digital assets will be supported at first by its oracle service, which will use data gathered from a number of centralized exchanges. In order to avoid single points of failure, it will also make use of an internal threshold signature scheme that signs on specific data flow. The centralization of the process was confirmed by the statement that “the legitimacy of the data is also continuously validated using the Binance public key.”
Binance keeps expanding outside of the cryptocurrency exchange business model and entering new markets. Binance Pool made a $500 million financing initiative announced earlier this month to help the Bitcoin mining industry. With its own BUSD supply reaching a record high of over $20 billion, Binance is also growing stronger in the stablecoin market.
BNB, the native token of the exchange, has gained just 1.1% so far today, remaining mostly flat on the day. Along with the rest of the cryptocurrency market, it has been on a recent uptrend and has gained 6.6% in the past week. BNB, like its siblings, is down 58% from its $686 all-time high set in May 2021. Having said that, compared to some high-cap crypto assets, which have lost over 80% of their value since their peaks, the loss has not been as dramatic.
The accuracy, timeliness, and tamper-proof nature of the Binance Oracle are all guaranteed by its four components.
- The data sources used by Binance Oracle were chosen with care. This makes it easier to judge whether the information is reliable and correct.
- A data processing and signing mechanism in Binance Oracle tries to make data tamper-proof.
- Through many nodes that only publish signed data, data is published on the blockchain. This means that even in times of significant price volatility, accurate data may be collected. Even in the worst-case scenarios, the multi-nodes guarantee the dependability of data posting.
- Information on Binance, an independent monitoring service that operates round-the-clock, every day of the week, keeps Oracle current. It collects prices from various data sources and contrasts them with publicly available blockchain data. If any large discrepancy is found, the Binance Oracle support team will step in and take action.
Blockchain oracles can make off-chain data accessible on-chain by employing external sources, despite the fact that they do not address the issue of data availability. Smart contracts can connect to any verified data outside of the Binance Oracle network. It employs a process to guarantee that the data is consistently accurate, secure, and current. Four solutions have been created by Binance Oracle to guarantee the accuracy of the data and to continuously check for potential problems.