Binance has announced the launch of an oracle network for its BNB Chain ecosystem, which will connect the blockchain to real-world data and vice versa.
According to DeFi Llama, the projects that have already integrated the Binance Oracle and some of the largest teams on the BNB chain. This includes lending protocol Venus, yield farming platform Alpaca Finance, and liquid staking solution Ankr.
Oracles allow smart contracts to access data that exists outside of the blockchain. A protocol, for example, may want its smart contract to be triggered based on stock prices, macroeconomic indicators, or even weather data.
Binance Oracle will initially provide index prices for the most popular digital assets.
Smart algorithms will check prices for accuracy and consistency, and a data monitoring architecture has been put in place, according to the announcement. The network’s recovery time objective, or tolerance for downtime, according to Binance, is “nearly zero.”
To ensure data integrity, each data feed will be monitored with a distributed “Threshold Signature Scheme” and verified with the Binance public encryption key, according to the company.
Oracles, despite being an important part of the blockchain ecosystem, have recently been exploited in crypto hacks.
In a Twitter thread after an attacker stole $100 million from the Mango Markets Solana DeFi trading platform, FTX CEO Sam Bankman-Fried blamed the design of the oracle providing MNGO token price.
