Well-known crypto platform Binance has launched its own blockchain oracle service to help decentralized applications (dApps) connect with real-world data. Binance announced the launch of its service, called Binance Oracle, on 25 October 2022.
Blockchain oracles such as this help dApps by converting real-world data into a smart contract-readable format. The Binance Oracle is currently built to serve all dApps built on Binance Chain but will extend services to other networks in the future. So far, over 10 projects from the Binance Chain have integrated with the new network.
With the launch of its Oracle, Binance has strengthened its position as a key player in the developing Web 3.0 space. The latest venture helps it cement its role in maintaining the stability of the crypto ecosystem. Recently, Binance’s mining pool pledged to offer $500 million worth of lending support to Bitcoin miners in the wake of dwindling mining revenue and profitability.
Highlighting the company’s growing contribution in the cryptosphere, Gwendolyn Regina, investment director at BNB Chain, said: “Binance Oracle will emerge as a significant contributor to Web 3.0 by offering a stable, reliable, and efficient Oracle network with comprehensive accuracy and accessibility features.”
Four features of Binance Oracle ensure timeliness, data accuracy, and integrity. They are:
Careful data source selection: The Oracle uses carefully selected data sources to determine whether the information is accurate and trustworthy. For instance, initially, Binance Oracle will source price data from numerous centralized exchanges and aggregating platforms for all digital assets.
Data processing and signing: With a distributed signing system called Threshold Signature Schema, the Oracle ensures that the data it signs off from different sources is up to date.
Use of multiple nodes for publishing: To maintain integrity, oracle data is published through multiple nodes that only publish information that has been signed off.
Data monitoring: Oracle data is constantly monitored by an independent monitoring service. The service relies on different sources and compares them to published data.
The new service launched by Binance puts it in direct competition with Chainlink, the oracle network that has dominated the space for a while now.