Binance exchange announced that it has designed a decentralized Oracle network; A network that can directly enable about 1400 applications on the BNB chain.
Binance, the world’s largest cryptocurrency exchange, unveiled its decentralized oracle system on Wednesday, Coindesk reported. This system provides input and output of real-world data for smart contracts connected to the BNB chain ecosystem.
Oracles are third-party systems that send data out of the blockchain environment to smart contracts. The place of oracles, like blockchains, is considered important and necessary in the world of digital cryptography, because they are usually considered an immutable storage of data, but they cannot independently verify the accuracy of input data; Therefore, oracles are used to ensure accurate data usage in DeFi applications and similar products based on each blockchain.
This data may be used for anything from providing pricing information to weather forecasting. Oracles can have a two-way function and are allowed to send data to the outside world.
Also read this:
In a pre-edited statement, Gwendolyn Regina, Director of Investments at BNB Chain, said about Binance’s Oracle system:
The use of oracles to significantly increase smart contract data regarding what is happening outside the blockchain is important and necessary for how to respond to external data. Binance Oracle will play its role as a prominent partner in the Web 3.0 market by providing a stable, reliable and efficient Oracle network with high accuracy and comprehensive access.
As mentioned earlier, the Binance exchange, through its decentralized Oracle system, directly hosts about 1,400 applications. BNB chain It also activates 10 massive BNB blockchain projects currently with the network Binance Oracle It’s integrated. Having said that, the said system is considered an anonymous chain and will eventually support multiple blockchains.
Binance exchange oracles will provide price data from centralized cryptocurrency exchanges to take care of data validity.
Recently, the existence of untrusted Oracle data led to the theft of $100 million from Solona-based lending service Mango Markets and $10 million from Moola Celo tokens. In both scenarios, the hacker was able to trick the protocols into releasing millions of tokens into the open space after manipulating the way the oracle-dependent lending mechanisms worked in both protocols.