Binance Introduces Oracle Services: All You Need To Know
- The leading crypto exchange by market volume Binance has debut a new oracle service which will bring it in direct competition with Chainlink (LINK), one of the oldest oracle service providers in the crypto space.
- The new service will provide a way for close to 1,400 decentralized applications or dApps and Web3 startups “to access existing data sources and advanced computations.”
- Over ten BNB Chain projects are already working with the Binance Oracle service under its early bird program.
Binance, the world’s leading cryptocurrency exchange platform by trading volume, has debuted a new service called Binance Oracle, which will be able to “connect smart contracts with off-chain data to retrieve or send out information for better usability,” according to the announcement on Wednesday.
As per the statement from the leading exchange, the decentralized Web3 oracle service will be first used by the native blockchain of the platform, BNB Chain which will enable smart contracts to run on real-world inputs and outputs on the BNB ecosystem. This innitiative puts Binance Oracle in direct rivalry with Chainlink (LINK), a blockchain which is focused on providing oracle services. Currently, LINK token is ranked as the 22nd biggest cryptocurrency with a market cap of $3.5 billion.
Oracles services are very useful in connecting the ouside world with blockchains, which are designed as immutable storage spaces. Therefore, using oracles, blockchain are able to take input and in cases of bi-directional oracles, even sent the output. The input could be anything ranging from the temperate of a certain place to the winner of the Presidential election race. In all, oracles can be summarized as techonological mediators between the real world input and the blockchain.
According to the statement, Binance Oracle will be a valuable addition to the BNB ecosystem as it will provide a way for close to 1,400 decentralized applications or dApps and Web3 startups “to access existing data sources and advanced computations.”
Furthermore, the exchange also announced an early bird program which is already underway with over ten BNB Chain projects are already working with the Binance Oracle service.
It was also confirmed that the new service, Binance Oracle, “is chain-agnostic and will eventually support more blockchains as well.”
“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,
Investment Director at BNB Chain, Gwendolyn Regina said.
Additionally, the oracle service’s index prices will be scrutinized “for correctness and consistency” via smart algorithms and as per the Binance blog, each regional domain will operate via its own infrastructure so that there is no fight between different domains for resources, which makes the “system immune to regional disasters.”
Regarding the security of the new service, the leading exchange said that “the data’s authenticity will be verified multiple times using the Binance public key during the data feeding process, guaranteeing that the data is not tampered with.”
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
