dApps and Web3 projects on BNB Chain can use Binance Oracle to access off-chain data.
Binance, the largest crypto exchange in terms of daily trading volumes, has launched its native oracle network initially available for BNB Chain.
According to the announcement shared on October 26th, Binance Oracle will assist smart contracts on DeFi applications, feeding them with off-chain data.
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Blockchain Oracles can be compared to bridges that connect blockchain and the real world. These services help “smart contracts to access real-world data and execute based on off-chain inputs.” Moreover, it can be treated as a channel for data traveling. Blockchain Oracles can be used to send data as well as to receive it.
When talking about Binance Oracle, BNB Chain Investment Director, Gwendolyn Regina, noted:
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.
A separate announcement shared by BNB Chain revealed that Oracle is using different regional domains to ensure that the whole system is “immune to regional disasters.” Moreover, the Binance Oracle uses an internal Threshold Signature Scheme (TSS) to confirm and check individual data feeds.
Binance highlighted that Oracle's reliability is reached through applying five resilience components: sourcing price data from CEXs, “Utilizing in-house TSS” for individual data feeds, “feeding the latest index price to on-chain oracle using a flexible time window and price deviation.”
Lastly, reliability is assured by “providing easy-to-use interfaces to on-chain dAPPs” and “providing perpetual monitoring and instant reaction on a 24/7 basis.”
According to the announcement, Binance Oracle will allow 1,400 decentralized applications (dApps) and Web3 ecosystem partners on BNB Chain to “access existing data sources and advanced computations.” Currently, the Oracle has been integrated into ten projects through the Early-Bird program, including Venus, Alpaca, SpaceID, Unilend, Deri, Ankr, Corite, Ultiverse, and Beefy.
In its announcement, the company highlighted that it is “chain-agnostic” and is planning to add support to more blockchains in the future.
In other news, Binance Pool has recently announced the launch of a $500 million lending project to support Bitcoin (BTC) mining.
