At the end of October, Binance, the leading cryptocurrency exchange, announced the launch of Binance Oracle – a data feed network that enables smart contracts to connect to real-world data. This innovation is designed to give current DApps and partners in the BNB Chain that are part of the Web3 ecosystem access to advanced computations and data sources. According to Binance, more than ten BNB Chain projects have already joined the Binance Oracle network and this data service will soon support other blockchains. This brand new data service is a valuable addition to the BNB Chain ecosystem, a substantial Web3 contributor, and another innovation likely to revolutionize the crypto space.
Binance has always done its best to develop new features, with only one goal behind it: to improve the user experience as much as possible. It is already a trusted crypto exchange that offers endless possibilities to users. On the exchange platform, there is live data on the Ethereum price, as well as those of other cryptocurrencies. Moreover, you can use Binance Pay to grow your business or simply hold your crypto funds and enjoy a seamless trading experience.
Understanding Blockchain Oracles
Oracles can be thought of as blockchain middleware because they unite two realms. Through that connection, smart contracts can transact based on information outside the blockchain, such as temperatures and interest rates, knowing that the information has not changed. Oracles are not a real-world source of information in nature; they collect the data from actual databases and efficiently communicate it to the blockchain. There is a two way relationship between blockchains and oracles as oracles also receive on-chain information which they later provide to third party apps such as banking related apps. This may open up new applications for businesses, such as supply chain tracking. Think of blockchains as a PC that is not connected to the internet. It is impossible for this device to access real world data; it is only limited to the files on the local hard drives.
A blockchain works the same way, as it can only access the transactions recorded in the ledger, reducing the number of applications you can run without real world data. Oracles are changing that by providing an internet connection and allowing blockchains to access remote data for smart contracts. But as efficient as they are in solving this problem for blockchains, oracles pose a problem with regard to centralization. Because of their decentralized features, blockchains can protect against unique points of failure. Suppose a cybercriminal obtains your private crypto keys. In that case, they only have access to someone’s money.
On the other hand, if a malicious person has access to a centralized crypto exchange, multiple accounts will be compromised at once by a data breach. In other words, a decentralized system requires numerous individual hacks, but a data breach affects millions of people in a centralized system. Fortunately, decentralized oracles provide a solution to this vulnerability by leveraging distributed data sources. Decentralized exchanges allow individuals to exchange assets with each other through an open ledger that no one takes ownership of.
Web3 and what Binance Oracle means for it
Web 1.0. Web 2.0. And now Web 3. This is how the Internet has evolved. The Web3 puzzle encompasses AI, encryption and privacy – three critical pieces shaping this new version of the Internet. Web3’s main focus is decentralization, which is the goal of enabling anyone to take ownership of online communities, ensuring transparency in data sharing. Instead of storing data on Google, it becomes possible to share it and store it in different locations. DAOs, or decentralized autonomous organizations, will be the ones sharing all the information – these are groups built to work towards a common goal. How does Web3 affect your life? The main benefit is that you take ownership of the data, and you can use it to build a better life. AI could become your personal butler, creating tailored experiences through the data you control. This can even go as far as creating personalized environments through AI.
According to Gwendolyn Regina, the BNB Chain Investment Director, the new version of the internet implies well-connected smart contracts. Therefore, the use of oracles is necessary to increase the knowledge of smart contracts about the events outside the blockchain, which will later be followed by specified actions in response to those events. Binance Oracle is a valuable contributor to Web3 as it provides a reliable and stable Oracle network with accessibility features and granular accuracy. Through smart algorithms, the index prices on Binance Oracle are verified for consistency and veracity. There is a unique infrastructure for each regional domain, so that regional calamities cannot affect the entire system. Detailed data monitoring architecture enables real-time responses and alerts. Binance Oracle is highly reliable and combines five resilient elements: getting price data from several centralized exchanges and aggregated prices by using a smart algorithm and an internal Threshold Signature Scheme. This signing mechanism ensures that data security does not allow any point of failure, resulting in enhanced security. In addition, the data will be checked multiple times to ensure its authenticity by using Binance’s public key. This guarantees that the data is not changed in any way.
For Binance, innovation is paramount
Innovation is central to the crypto universe. Without the revolutionary features and updates, the industry would never have experienced such growth. Binance is a top cryptocurrency exchange for a reason, because innovation is paramount. Over time, the company has consistently demonstrated its unwavering commitment to providing users with access to much-desired financial freedom. Binance has focused on expanding its product line across the exchange and facilitating access to various financial tools and new job opportunities within the blockchain.
In addition, the company has always been committed to empowering others. To that end, it has prioritized education and deepened cryptocurrency adoption in Africa by teaching people how cryptocurrencies work and how to protect themselves from common scams. Binance taught over 600,000 Africans about crypto, which is crucial in a post-pandemic world plagued by rising inflation and economic downturn. By doing so, the company ensures that users have access to vital resources to help them succeed, even in uncertain circumstances. But the company’s product offerings are just some of the things Binance has focused on. The company has also expressed why regulation is crucial to drive mainstream adoption of cryptocurrencies. Over the past year, Binance has engaged regulators worldwide at unparalleled levels. This is an important step towards creating regulatory certainty in the industry. Moreover, it also highlights that cryptocurrencies are not going anywhere and that mainstream adoption can become a reality.
Disclaimer: This is a paid post and should not be treated as news/advice.