Quick take:
- Binance has launched a decentralised web3 oracle dubbed Binance Oracle.
- The product leverages off-chain data and systems to provide BNB Chain projects and partners with access to existing centralised data sources and analytics.
- BNB Chain has already onboarded ten early bird projects onto the new product.
Binance has launched Binance Oracle, a decentralised web3 solution that allows projects and partners to access off-chain data services on the BNB Chain. The product is part of Binance’s strategy of creating an ecosystem that enables smart contracts and decentralised applications on its blockchain to leverage centralised data and share information for improved usability.
Web3 is still in its nascent state, which means decentralised apps built on it sometimes require existing data sources built on web2. In the case of Binance Oracle, the solution is a valuable addition to the scalable BNB Chain infrastructure and will provide the blockchain’s 1,400 plus dApps and web3 ecosystem partners to gain access to price data from centralises exchanges (CEXs).
Commenting on the announcement, 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 uses smart algorithms (computational processes that gain knowledge every time they process new information) to check the correctness and consistency of index prices.
The system leverages data from multiple sources to identify the most recent feed, which is then sent to the on-chain oracle for use by projects. BNB Chain said it has already onboarded 10 projects to the Binance Oracle.
Plans are to eventually roll out the solution to more blockchains after successful deployment on BNB Chain.
Writing in a blog post published on the BNB Chain website, the company described an Oracle as an algorithmic system that “bridges the blockchain and the real world.”
“These oracles facilitate the entry of real-world data into the blockchain. This information might range from pricing information to weather forecasts. Oracles can also be bidirectional, allowing them to “send” data to the outside world,” the statement read.
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