Binance, one of the most used exchanges today, inaugurates a new project that allows an oracle to be used as a bridge between two worlds: the real one and the cryptographic one. This means that with this new tool that Binance offers, the data will no longer only interact within the Blockchain.
Binance Oracle, this is what this new tool has been called that allows the interconnection between the data of the Blockchain or the Smart Contracts and external data of the chain of blocks.
According to the official statement from the company: “Oracles are services that allow smart contracts to access data from sources that can be found outside of their native networks. In other words, an oracle is a bridge between the Blockchain and the real world. These services can help smart contracts access external data and execute based on off-chain input.”.
Thus, the data can be of any type and can interact in both directions, that is to say from the chain of blocks or towards the chain of blocks. And this is so because the oracles are “simplement a channel for the data to travel through instead of a data source itself” explains the Binance expert team.
Faced with this possibility, the first anguish is security. Is it possible that the security of the blockchain is affected by the entry and exit of information? In this regard, Binance explains that this innovation has a Treshold Signature Scheme toolwhich translates into a digital signature protocol used by Multi-Party Computing (MPC) wallets to authorize transactions, and due to its mechanism allows information to be encrypted and shared, which prevents all information in a single site.
In this way, The Binance Oracle is designed to make it possible for Smart Contracts to obtain information from outside the blockchain in a secure way. In addition to this, the veracity of this data will be continuously verified with the same Binance public key, guaranteeing that the data is not altered during any transaction.
Binance Oracle is scheduled to work with all DeFi protocols, and will also be feeding into major exchanges to ensure a more accurate price index..
Now the challenge lies with the infrastructure, for which it is planned to implement infrastructure in each region to achieve immunity from possible interruptions and disasters that affect the operation of this new tool.
To precisely optimize this performance, Binance Oracle will support multiple Blockchain ecosystem partners, such as BNB Chain, Venus, Alpaca, SpaceID, Unilend, Deri, Ankr, Corite, Ultiverse, and Beefy. Binance Oracle will serve as a springboard for the field of blockchain oracles, and the company is committed to establishing itself as the leading infrastructure service provider for the Web3 connected digital asset industry.
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