Blockchain oracle is an essential component of the blockchain ecosystem. Without them, the smart contract cannot get the actual data. Blockchain Oracle is a blockchain oracle that provides smart contracts with access to the real-world data sources needed for blockchain applications. This ensures that smart contracts have the correct data at the right time.
In addition, Binance Launches Oracle, the world’s leading cryptocurrency exchange platform with trading volume, has announced a new service called Binance Oracle. BNB Chain will first use web3 Oracle’s decentralized service, the platform’s native blockchain, allowing smart contracts to run on real-world inputs and outputs of the BNB ecosystem, according to a statement from a central exchange.
With this initiative, Binance Launches Oracle Network and will directly compete with Chainlink (LINK), a blockchain focused on providing oracle services. Currently, the LINK token ranks as the 22nd most prominent cryptocurrency, with a market capitalization of $3.5 billion.
Oracle’s services are beneficial in connecting the outside world to a blockchain designed as an immutable storage space. So with an oracle, a blockchain can receive inputs and even send outputs the case of a two-way oracle. The information can be anything from the temperature of a particular location to the winner of a presidential election.
Oracle can be summarized as a technological intermediary between real-world inputs and blockchains. According to a statement, Binance Oracle will provide nearly 1,400 decentralized applications or dApps and Web3 startups with a way to “access existing data sources and advanced computations,” thus adding value to the BNB ecosystem.
In addition, the exchange also announced an early bird program already in operation, with over 10 of his BNB chain projects already working with the Binance Oracle service. It was also confirmed that the new service, Binance Oracle, will be “chain agnostic and will eventually support more blockchains.”
What is Binance Oracle?
Smart contracts cannot interact with external data without help. Binance oracles are similar to other blockchain oracles. A data service by Binance aims to provide reliable and secure data to the blockchain. Binance Oracle Network is currently explicitly built for the BNB chain, but it can still be expanded to other chains in the future. Additionally, any project built on the BNB chain can use its services.
The BNB Chain ecosystem has benefited in many ways from the Binance Oracle.
- First, native blockchain oracles strengthen the trust in blockchain data.
- Second, more reliable data will lead to new opportunities for existing and new projects.
- Finally, Binance Oracle can attract new developers to its BNB chain ecosystem.
This will allow any developer to connect her BNB chain-based project to off-chain data, keeping existing data, finding new sources, or risking using untrusted data. You can save time.
Binance Oracle Ready To Bridge Blockchains
Binance Oracle does everything it takes to make blockchain and web3 work without borders. The idea of bridging the Web3 ecosystem and the natural world used to be too futuristic, but with the Binance Oracle Network, “things change forever.”
Blockchain services are the source of off-chain data. Well, if this discovery doesn’t sound all that exciting, here’s how its use case in intelligent contracts could change the industry forever.
Oracle will initially be available on a limited number of blockchains, but preparations will soon be made for each blockchain to feed itself with real-world data. Binance Oracle Network enables existing blockchain apps (decentralized applications) to interact with data storage outside the world.
Blockchains have only been able to access data from limited blockchain sources. This network allows intelligent contracts based on blockchain technology to receive more information about the actual contract’s outcome. Binance Oracle service can use an internal threshold signature scheme to inject data through algorithms with increased reliability.
Binance is the largest cryptocurrency exchange in terms of trading volume, and the brand benefits from its unique position in the market in terms of its broad portfolio. On October 17th, Binance also entered the blockchain lending business with cryptocurrency lending.
What Solutions Are On offer?
Blockchain projects rely on trusted data. Binance oracles have four aspects that ensure accurate, timely, and tamper-proof forecasters. Let’s take a closer look at Binance Oracle’s ability to connect the BNB chain to the real world.
Data Sources
Binance Oracles use carefully selected data sources. This helps us determine whether the information is accurate and whether the source is reliable. For example, Binance Oracle obtains price data from multiple centralized exchanges (CEX) and decentralized financial applications (DeFi) and aggregates the data using a weighted average formula.
Data Processing and Signing
Binance Oracle has data processing and signing capabilities to prevent data tampering. Set up a distributed signature system called a threshold signature scheme to sign up-to-date data from various sources. Anyone with the public key can verify the digital signature’s correctness and authenticity; without the private key set, the data cannot be changed. Release of
Data Publishing
Data is released on the blockchain via multi-nodes releasing signed information only. The smart contracts that store the data are secure and audited, and the multimode can adjust the frequency of data releases based on market conditions. This means that you can get accurate data when price volatility is high. In addition, multi-node ensures data release reliability even in extreme scenarios.
Data Monitoring
Data oracles are kept up to date by an independent monitoring service that operates 24 hours a day, seven days a week. Get prices from various data sources and compare them with publicly available blockchain data. The Binance Oracle support team will intervene if any serious discrepancies are detected.
Using Binance Oracle
If you have used the blockchain application before, you do not need to learn how to use Binance Oracle. The developer has already linked the application to concrete data as required. However, for blockchain developers who need to use Binance Oracle, the official guide will walk you through the integration step by step.
Conclusion
Without oracles, blockchain information is limited to internal data, which reduces the potential and mass adoption opportunities for blockchain. Blockchain oracles do not solve the data availability problem, but they can use external sources to make off-chain data available.
Binance Oracle enables smart contracts to connect to verified data outside the network. We use processes to ensure that your data is consistently accurate, secure, and up-to-date. Binance Oracle has developed four solutions to ensure data reliability and monitor potential issues. The new internet is evolving to well-connected intelligent contracts. As a result, it becomes crucial to be able to respond to events with specific actions.
Binance Oracle will develop into a critical contributor to Web3 by providing a stable, reliable, and efficient oracle network with complete accuracy and accessibility features. In addition, index prices for Oracle Services are checked for accuracy and consistency via intelligent algorithms.
According to the Binance blog, each regional domain will run on its infrastructure, so there will be no resource competition between different parts. Regarding the security of the new service, meaningful exchanges will state that the authenticity of data is verified multiple times during the data ingestion process using Binance’s public key to make sure that the data has not been damaged.
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