Binance Oracle will ensure a safe, reliable, and secure data transfers between blockchain and real-world data sources especially catering to all Web3 applications.
On Wednesday, October 26, crypto exchange Binance announced the launch of its new data feed network Binance Oracle connecting real-world data to blockchain smart contracts. Binance calls it a Web3 oracle that will allow smart contracts to run on real-world inputs and outputs.
The BNB Chain ecosystem shall be the first to use the Binance Oracle services. Currently, ten BNB Chain projects have already integrated with its Oracle. The crypto exchange said that its Oracle will be a valuable addition to the scalable BNB Chain infrastructure.
This would allow BNB Chain’s 1,400 decentralized applications and Web3 ecosystem partners to access existing data sources and other advanced computations. The crypto exchange also said that its Oracle is chain-agnostic and shall support more blockchains in the future. Investment Director at BNB Chain, Gwendolyn Regina said:
“The new internet is 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. 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 to Use Threshold Signatures
The announcement shows that Binance Oracle will source price data from several CEXs and aggregate prices using an intelligent algorithm. Also, to sign individual data feeds, Oracle users an internal Threshold Signature Scheme.
This will help to feed the most recent price index to the on-chain oracle. The Threshold Signature Scheme is a distributed mechanism assuring that there’s no single point of failure in data security. During the data-feeding process, the Binance public key will help in verifying the data’s authenticity multiple times. Thus, it will ensure that the data remains tamper-proof.
The official announcement from Binance notes that “Binance Oracle index prices are checked for correctness and consistency using smart algorithms. All components operate in either a hot-warm or a hot-hot design and Recovery Time Objective is nearly 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”.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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