Binance’s CZ announced his company is launching its own oracle service. Binance Oracle will first be implemented on the BNB and is intended as means for “enriching the BNB Chain ecosystem.”
Binance Announces the Launch of Binance Oracle
On Wednesday, Binance officially launched its own oracle service—Binance Oracle. This service will be implemented on the BNB chain. The oracle represents a means for a blockchain to access data from outside with the goal being to provide as accurate and verifiable information as possible.
Binance views this type of service as a key to the future prosperity of Web3 ecosystems. While Binance Oracle is purpose-built for the BNB chain, the company hopes to expand its application to other blockchains and provide a credible alternative to the currently-dominant Chainlink.
Binance sees tremendous opportunity within the field of blockchain oracles and believes that contributing to this sector will allow the BNB Chain ecosystem and the larger digital asset space to flourish for the benefit of users. Oracles can serve as the foundation of Web3, reliably providing smart contracts that power a vast array of use cases with the necessary real-world data.
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What is Binance Oracle?
Binance explains its oracle service as a system that connects smart contracts to trusted and verified sources of data. The service is intended to support index prices for most of the most popular digital assets using five main components: sourcing data from centralized finance and DeFi, utilizing an in-house Threshold Signature Scheme (TTS) to verify the info, inputting the latest index prices into the oracle, providing an accessible user interface, and updating 24/7.
The company hopes its oracle service will boost the overall trustworthiness of its blockchain data by providing more reliable information and will sign all the data. According to the post, this can lead to “new possibilities for existing and new projects,” and attract developers from outside the ecosystem to BNB.
Binance isn’t the only company to implement an oracle. Coinbase implemented the NEST protocol in July 2022 to its network. Apart from these two companies, a major provider of decentralized oracle services is Chainlink which implemented staking early this year.
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About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.