On Wednesday, October 26th, Binance, the world’s leading crypto infrastructure provider, announced its Decentralized Web 3 Oracle. Binance Oracle acts as a data feed network connecting real-world data to blockchain-based smart contracts.
This could be the first major competitor to existing Oracle service providers such as Chainlink (LINK). With its robust infrastructure, Chainlink has established itself as a powerful data feed network that provides a bridge between blockchain-based systems and real-world online infrastructure.
Binance Oracle enables smart contracts based on real world inputs and outputs. The crypto exchange first decided to use oracle services on the BNB chain. This will enable approximately 1,400 distributed applications and Web3 partners to leverage their existing data sources.
More than 10 projects on BNB Chain have already been integrated with smart contracts as part of the Early Bird Program. Binance says its oracle service is chain agnostic and will eventually support more blockchain networks.Gwendolyn Regina, Investment Director of BNB Chain, speaking about the development Said:
The new internet is evolving into well-connected smart contracts. Enabling your actions to respond to external events is critical, and Binance Oracle is committed to providing a stable, reliable, and efficient Oracle Network with comprehensive accuracy and accessibility features. , will emerge as an important contributor to Web3.”
How does Binance Oracle work?
The Binance Oracle network seeks to achieve a higher level of trust by sourcing price data from various centralized exchanges (CEX) and aggregating prices using intelligent algorithms. For individual data feeds, the network leverages a Threshold Signature Scheme (TSS) that provides a distributed mechanism that eliminates single points of failure.
Also, during the data feed process, the Binance public key verifies the authenticity of the data multiple times. This helps prevent any kind of data tampering. If successful, this oracle network will also compete directly with: chain link.
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