BNB Chain will be the first blockchain to use Binance Oracle to connect smart contracts with off-chain data to retrieve or send out information for better usability.
Binance Oracle is Here
Binance, the world’s leading cryptocurrency infrastructure provider, has launched Binance Oracle, a decentralized Web3 Oracle, a data feed network that connects real-world data to blockchain smart contracts. Binance Oracle will enable smart contracts to run on real-world inputs and outputs, starting with the BNB Chain ecosystem.
The Binance Oracle will be a valuable addition to the scalable BNB Chain infrastructure, providing a way for 1,400 decentralized applications and Web3 ecosystem partners to access existing data sources and advanced computations. The early bird program has begun, and over ten BNB Chain projects have already integrated with the Binance Oracle network. Binance Oracle is chain-agnostic and will eventually support more blockchains as well.
Binance Oracle: Significant Web3 Contributor
Investment Director at BNB Chain, Gwendolyn Regina said: “The new internet is in the process of evolving into well connected smart contracts. Using oracles to dramatically increase the smart contract's knowledge of what's going on outside of the blockchain, allowing it to respond to external events with specified actions will be crucial. Binance Oracle will emerge as a significant contributor to Web3 by offering a stable, reliable, and efficient Oracle network with comprehensive accuracy and accessibility features.”
Binance Oracle index prices are checked for correctness and consistency using smart algorithms. All components operate in either a hot-warm or a hot-hot design and Recovery Time Objective is nearly zero. Each regional domain has its own infrastructure, making the overall system immune to regional disasters. To provide real-time alerts and responses, a comprehensive data monitoring architecture is deployed.
Binance Oracle achieves the highest level of reliability via the use of five resilient components: sourcing price data from many CEXs and aggregate prices using an intelligent algorithm and using internal TSS (Threshold Signature Scheme) to sign individual data feeds. It feeds the most recent index price to the on-chain oracle, allowing for a customizable time frame or price variation and providing a variety of simple interfaces to on-chain DApps, as well as 24*7 data monitoring and quick response.
The network leverages the Threshold Signature Scheme for each data feed, and such a distributed signature mechanism assures that there is no single point of failure in data security, resulting in superior safety. Furthermore, the data's authenticity will be verified multiple times using the Binance public key during the data feeding process, guaranteeing that the data is not tampered with.
An oracle bridges the blockchain and the real world. These oracles facilitate the entry of real-world data into the blockchain. This information might range from pricing information to weather forecasts. Oracles can also be bidirectional, allowing them to "send" data to the outside world.