Binance Launches 'reliable and Secure' Oracle Network to Bridge Web 3.0 and Blockchains
A new native Oracle has been launched by Binance, making it the first native Oracle on the Binance platform. The Binance Oracle network will be deployed first in the BNB Chain ecosystem, with the aim of improving its "security, reliability, and efficiency.".?
In fact, the Binance Oracle has already been integrated into the projects, which include a number of the most influential teams on the BNB network, including yield farming platform Alpaca Finance, lending protocol Venus, and liquid staking solution Ankr.
An Oracle fetches external data to a blockchain. It's necessary since blockchains are immutable data storage systems that can't independently verify data authenticity.
Using Oracles, decentralized finance (DeFi) applications and similar products based on any blockchain ensured that accurate data is being used. Data can also be sent by Oracles to the outside world, making them bidirectional. Depending on securities prices, macroeconomic indicators, or weather, a protocol can trigger its smart contract.
In a statement, BNB Chain's investment director Gwendolyn Regina said, “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 also revealed the use of regional domains to ensure system uptime. Binance assures high reliability by using an internal Threshold Signature Scheme for each data feed and an algorithm for price aggregation.
To ensure data reliability, Binance oracles would pull price data from several centralized crypto exchanges. Recently, Mango Markets, a lending service based on Solana, suffered an attack that cost $100 million, and Moola, a lending and borrowing protocol based on Celo, suffered a $10 million exploit.
CBW - External Analyst