BNB Chain will be the first blockchain to use Binance’s decentralized Web3 Oracle
Quick take:
- Binance has launched a decentralized web3 oracle called Binance Oracle.
- The product leverages off-chain data and systems to give BNB Chain projects and partners access to existing centralized data sources and analyses.
- BNB Chain has already included ten early bird projects on the new product.
Binance has launched Binance Oracle, a decentralized web3 solution that allows projects and partners to access off-chain computing services on the BNB chain. The product is part of Binance’s strategy to create an ecosystem that enables smart contracts and decentralized applications on its blockchain to leverage centralized data and share information for improved usability.
Web3 is still in its nascent state, meaning that decentralized apps built on it sometimes require existing data sources built on web2. As for Binance Oracle, the solution is a valuable addition to the scalable BNB Chain infrastructure and will allow the blockchain’s 1,400 plus dApps and web3 ecosystem partners to access price data from centralized exchanges (CEX).
Commenting on the announcement, BNB Chain Chief Investment Officer Gwendolyn Regina said: “The new internet is evolving into well-connected smart contracts. Using oracles to dramatically increase the smart contract’s knowledge of what is happening outside the blockchain, so that it can respond to external events with specified actions, will be essential.”
Binance Oracle uses smart algorithms (calculation processes that gain knowledge every time they process new information) to check the correctness and consistency of the 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 brought 10 projects to Binance Oracle.
The plans are to eventually roll out the solution to several blockchains after successful distribution on BNB Chain.
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 introduction of real-world data into the blockchain. This information can range from price information to weather forecasts. Oracles can also be bidirectional, allowing them to ‘send’ data to the outside world,” the statement said.
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