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Binance’s Oracle Network to Power Web3 and BNB Chain Ecosystem

Binance launches Binance Oracle, its decentralised Web3 Oracle connecting real-world data to blockchain smart contracts.

The cryptocurrency infrastructure provider’s Binance Oracle enables smart contracts to run on real-world inputs and outputs.

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.

The company’s blockchain oracle will connect smart contracts with data sources, ensuring the availability of the correct data at the correct time.

The company’s BNB Chain ecosystem will be the first of its blockchains to use Binance Oracle to connect smart contracts with off-chain data to retrieve or send out information for better usability.

The Oracle is forecast to facilitate access for 1,400 decentralised applications (DApps) and Web3 ecosystem partners into existing data sources and computations.

As part of the company’s ‘early bird’ programme, over 10 projects on the BNB Chain have already integrated with the Binance Oracle network.

Binance Oracle is chain-agnostic and is expected to eventually support more blockchains in the future.

Discussing the role of smart contracts in the evolution of the internet, investment director at BNB Chain, Gwendolyn Regina, explained how using oracles “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.”

“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,” continues Regina.

The accuracy of Binance Oracle’s price index is to be supported by the use of smart algorithms.

‘All components operate in either a hot-warm or a hot-hot design’ and ‘recovery time objective is nearly zero,’ according to the company’s official statement.

Each regional domain has its own infrastructure, making the system more resilient to regional disasters. To provide real-time alerts and responses, the company has deployed a data monitoring architecture.

The Oracle ensures its own reliability via the use of five resilient components: sourcing price data from many CEXs and aggregate prices using both a specifically wired algorithm and an internal threshold signature scheme (TSS) to sign individual data feeds.

It feeds the most recent index price to the on-chain oracle, allowing for a customisable time frame or price variation and providing a variety of simple interfaces to on-chain DApps.

The network leverages the TSS for each data feed, a distributed signature mechanism that’s able to avoid single points of failure in data security.

The data’s authenticity will be verified through the Binance public key during the data-feeding process.

Author

  • Tyler is a fintech journalist with specific interests in online banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.

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