Binance will launch oracles on its blockchain

The powerful exchange in the cryptocurrency universe announced last week the imminent launch of oracles on the BNB chain, thus competing with the Chainlink blockchain.

Binance Blockchain Oracles

The oracles will soon be available on the Binance blockchain, the largest cryptocurrency exchange by trading volume. These will allow to make the connection between the blockchain and the real world, favoring the automation of smart contracts.

Investment director of the BNB chain, Gwendolyn Regina, explained that:

“The use of oracles will allow a smart contract to access a vast web of information about what is happening outside the blockchain. This will allow a contract to respond to external events with specific actions, a capability that will be crucial in future”.

What does this mean for BNB Chain?

To collect data outside of blockchains, decentralized applications (Dapps) use smart contracts. And for the latter to have automatic access to information that is off the chain, they need a bridge. This is where oracles come into play, acting as intermediaries between the physical world and a smart contract.

Therefore, oracles allow you to securely transport external information that will be transferred to blockchains via smart contracts. This information can be: sports scores, temperature data and much more …

To ensure the security of the data streams carried by its network of oracles, Binance will use a system, similar to cryptographic verification tools: threshold signatures. Consisting of two modules, Binance Oracle will be able on the one hand, thanks to the Off the chaincollect information outside the blockchain, analyze it, validate it and then provide it to users.

On the other hand, thanks to In chain containing smart contracts, decentralized applications will be able to take advantage of the new service. Regarding security, Binance has made it clear that its network will provide a reliable and secure data flow through verification of the platform’s internal protocol:

“Binance Oracle will emerge as a major contributor to Web3 by delivering a stable, reliable and efficient Oracle network with comprehensive accuracy and accessibility capabilities.”

Furthermore, the platform will ensure that each region benefits from its own infrastructure. Binance says its network will be able to serve more than 1,300 decentralized applications and various Web3 partners, and will also be used in other blockchains in the near future.

By launching its own network of oracles, Binance competes directly with Chainlink, one of the earliest known oracle networks.

Disclaimer

All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at your own risk.

Leave a Comment