Binance Unveils Oracle Network, Will It Compete With Chainlink?

On Wednesday, October 26, the world’s leading crypto infrastructure provider Binance unveiled a decentralized Web 3 oracle. The Binance Oracle will serve as a data feed network connecting real-world data to blockchain-based smart contracts.

This could be the first major competition to the existing oracle services providers like Chainlink (LINK). With its robust infrastructure, Chainlink has established itself as a formidable data feed network offering the bridge between blockchain-based systems and real-world online infrastructure.

The Binance Oracle will enable smart contracts based on real-world inputs and outputs. The crypto exchange has decided to first use its oracle services on the BNB Chain. This will provide nearly 1,400 decentralized applications and Web3 partners to tap into existing data sources.

As part of the early bird program, more than ten projects on the BNB Chain have already integrated with smart contracts. Binance said that its oracle services are chain-agnostic and shall eventually support more blockchain networks. Speaking on the development, 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.”

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How Will Binance Oracle Work?

Binance Oracle network seeks to achieve a greater level of reliability by sourcing price data from different centralized exchanges (CEXs) and aggregating prices by using an intelligent algorithm. For individual data feeds, the network leverages Threshold Signature Scheme (TSS) that offers a distributed mechanism eliminating any single point of failure.

Also, during the data feeding process, the Binance public key will verify the data’s authenticity multiple times. This would prevent any kind of data tampering. If successful, this oracle network will also directly compete with the likes of Chainlink.

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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