Oracle network launched for Binance to power Web3 and BNB Chain ecosystem
Binance has launched ‘Binance Oracle’ – a decentralised Web3 oracle with a data feed network that connects real-world data to blockchain smart contracts.
It will enable smart contracts to run on real-world inputs and outputs, starting with the BNB Chain ecosystem.
The Binance Oracle should prove to be a valuable addition to the scalable BNB Chain infrastructure, providing a way for 1,400 decentralised applications and Web3 ecosystem partners to access existing data sources and advanced computations.
The early bird program has begun, and more than 10 BNB Chain projects have already integrated with the new network. Binance Oracle is chain-agnostic and will eventually support more blockchains as well.
Investment Director at BNB Chain, Gwendolyn Regina, explained the ‘new internet’ was 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,” she said.
“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 accuracy and consistency using smart algorithms. All components operate in either a hot-warm or a hot-hot design and recovery time objective (RTO) is almost 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.
Price data is sourced from many CEXs and aggregate prices using an intelligent algorithm with 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 interfaces to on-chain dApps, as well as 24/7 data monitoring and quick response.
The network leverages the TSS for each data feed, and such a distributed signature mechanism assures 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.
What is an ‘oracle’?
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.