The world’s largest exchange Binance is officially launching Binance Oracle in October this year, which will make smart contracts more reliable on the BNB Chain ecosystem!
In the context of blockchain, an oracle is basically a data source that is used as a bridge between smart contracts and other external sources. This infrastructure allows smart contracts to access data from sources located outside their local network. In other words, Oracle acts as a bridge between the real world and the blockchain.
What is Binance Oracle?
Binance Oracle is designed to be used to assist smart contracts at points where off-chain data entry is needed. It was created specifically because of the need for DeFi applications. With the work done, Binance Oracle will reliably and accurately feed the blockchain with data. Binance Oracle will initially support index prices for popular digital assets. Oracle relies on a combination of 5 robust components to provide this support to the index price of the specified digital assets, these are;
- Taking the price information from numerous CEX’s and collecting them with a special formula
- Using in-house TSS to sign individual data streams
- Feeding the on-chain oracle with the final index price using a flexible time window and price deviation
- Providing easy-to-use interfaces to on-chain dApps
- Continuous monitoring and instant response 7/24
Thanks to the TSS, Binance Oracle ensures that there is not a single point of failure in the data security of the system. The authenticity of the data will be continuously verified using the Binance public key and data tampering will be prevented during the feed process.
One of the advantages that Binance Oracle offers to users is its high availability. With Binance Oracle, you can access data from the best sources with algorithms that confirm the accuracy of index prices. This service of Binance is designed to ensure continuous data flow even in the worst cases.
Binance Oracle has previously announced that it has included ten BNB Chain projects in the early-bird program, including Venus, Alpaca, SpaceID, Unilend, Leather, Ankr, Corite, Ultiverse and Beefy. The blockchain data service wants to serve more Web3 teams and users with the addition of flexible customization.