Binance Oracle network to bridge Web3 and blockchains via smart contracts

Binance Oracle network to bridge Web3 and blockchains via smart contracts



Crypto exchange Binance announced the launch of a new data feed network — Binance Oracle — that allows blockchain smart contracts to connect with real-world data, starting with its in-house blockchain offering, BNB Chain. 

For starters, Binance Oracle will allow existing decentralized applications (DApps) and Web3 ecosystem partners on BNB Chain to access existing data sources and advanced computations. “Over ten BNB Chain projects have already integrated with the Binance Oracle network,” confirmed Binance.

The ability to connect smart contracts with off-chain data will be made available for other blockchains in due time. Explaining the network’s importance, investment director at BNB Chain, Gwendolyn Regina stated:

“Using oracles to dramatically increase the smart contract’s knowledge of what’s going on outside of the blockchain, allowing it to respond to external events with specified actions will be crucial.”

Furthermore, Binance revealed the use of regional domains to ensure the system’s uptime amid unpredictable global calamities. The network uses components such as an internal Threshold Signature Scheme (TSS) for each data feed and price aggregation using an algorithm, which according to Binance, ensures high reliability.

Related: How CZ built Binance and became the richest person in crypto

Binance continues to delve into numerous crypto businesses, taking advantage of its unique position as the biggest crypto exchange in terms of trading volume.

On Oct. 17, Binance Pool, a mining subsidiary of Binance, launched a $500 million fund to support the crypto mining industry through loans. Speaking to Cointelegraph, a Binance spokesperson further clarified the criteria for a potential borrower:

“One of the requirements is that the applicant must be classified as a Binance VIP user and connect at least 500 PH/s to the Binance Pool for a minimum of 24 months after the loan is issued.”

The announcement revealed certain conditions against the loans, including 18-to-24-month terms, 5% to 10% interest rates and some physical or digital assets as a security.