Will start with BNB Chain and directly benefit some 1,400 applications on the BNB chain
Binance is the world’s largest crypto exchange by volume and currently, the company launched its native oracle service to enable smart contracts to run on real-world inputs and outputs. The program will be starting with applications on the BNB Chain. The native oracle service is a big step for Binance Smart Chain as it will allow for the development of more complex decentralized applications (dApps). The oracle network will directly benefit some 1,400 applications on the BNB chain.
Oracle are third-party services that retrieve data externally and post it to a blockchain so that smart contracts can interact with the real world. The launch of Binance’s oracle service will allow for more complex dApps to be built on the Binance Smart Chain. This is a big step forward for the company and its blockchain platform. Oracles are used to ensure accurate data is being used on DeFi applications and similar products on the blockchain. The data could be anything from pricing to weather forecasts. Oracles are bi-directional and can “send” data to the outside world as well. An Oracle is then able to properly respond to internal and external events with specified actions.
A $100 million exploit on Solana-based Mango Markets and a $10 million exploit on Celo-based Moola all could have been avoided in a reliable system with oracle data was implemented. Both cases saw the attacker able to trick the protocols into releasing millions of dollars in tokens after manipulating how the oracle-dependent mechanisms worked.
Binance has been working on its smart contract capabilities since 2019 when they launched the testnet for their Binance Chain. The Binance Smart Chain is a parallel blockchain that is connected to the Binance Chain. The two blockchains are able to communicate with each other and this allows for cross-chain transfers of assets. The native oracle service is another step in making the Binance Smart Chain more robust and capable of handling more complex applications.
The oracle service is currently in beta and is being tested by a select group of developers. The full launch is expected to happen in the coming months. Binance is also working on other features for their smart contract platforms such as a decentralized exchange (DEX), synthetic assets, and cross-chain transfers.
“The launch of the Binance Oracle Network is a significant milestone for the Binance Smart Chain ecosystem. It will enable a new wave of complex and powerful dApps to be built on our platform, furthering our mission to make Binance Smart Chain the best place to launch a dApp,” said He Yi, Co-Founder of Binance.
The oracle service is provided by Chainlink, a decentralized oracle network that connects smart contracts on blockchain networks to real-world data, events, and payments. The partnership will allow for the development of a wide range of dApps on the Binance Smart Chain, including those related to DeFi, synthetic assets, gaming, and prediction markets.
“We’re thrilled to be partnering with Binance to provide their developers with access to secure and reliable data for their Binance Smart Chain dApps. The Binance community has been incredibly supportive of our work and we’re looking forward to seeing what they build on the Binance Smart Chain,” said Sergey Nazarov, Co-Founder of Chainlink.
The launch of the oracle network is a major development for the Binance Smart Chain ecosystem and will help to further solidify Binance’s position as a leading platform for the development of decentralized applications
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