About Binance Oracle
A blockchain oracle is a bridge between the blockchain and the real world. These oracles allow real world data enters blockchain.
This data could be anything from price information to weather reports. Oracles can also be bi-directional, used to "send" data out to the real world.
Please read our article in Binance Academy to understand more about blockchain oracle.
On such note, Binance Oracle brings the crypto asset's real-world market prices to your smart contracts on the BNB Chain. We offer price feeds for multiple crypto pairs aggregated over a variety of sources.
Before using the Oracle, it is important to ensure high data quality for your needs. For this purpose, we offer multiple data quality tiers.
Please read through them carefully and understand the underlying risks before using the Oracle.
Reliability takes the priority
Binance oracle enables smart contracts to connect to all confirmed data outside its network. It has developed a process to ensure that the data would be consistently correct, secure, and up to date. The Binance Oracle has developed 4 major solutions to ensure the data is reliable and has constant monitoring for possible issues.
1. Data sources
Binance oracle uses data sources that are selected manually. This feature helps to determine that the information comes from a trusted place and is accurate. For example, Binance oracle sources price data from multiple centralized exchanges (CEXs) to decentralized finance (DeFi) applications and aggregates the data using a weighted formula.
2. Data processing and signing
Binance oracle has a data processing and signing process that aims to make data tamper-proof. It has established a distributed signing system called the Threshold Signature Scheme. It signs the latest data from different sources, and anyone holding a public key can verify the correctness and authenticity of that digital signature. And no one can change the data without a private key.
3. Data publishing
Publishing data to the blockchain happens through multi-nodes. The multi-nodes publish data using only already signed data. The multi-nodes also ensure that those smart contracts that already store some data are secure and audited. In addition, the multi-nodes can adjust the data publishing frequency according to a situation. For example, it can help get accurate data during high price volatility.
4. Data monitoring
The data on the Binance oracle is kept up to date with an independent monitoring service that works 24 hours a day, 7 days a week. It fetches prices from different data sources and compares them to published blockchain data. And the Binance Oracle support team will intervene if a significant deviation gets detected.
How to use Binance Oracle?
If you are a user of blockchain applications, then you don't necessarily need to learn about how to use the Binance oracle. Because the developers have already connected the application to the specific data if needed. However, if you are a blockchain developer who needs to utilize Binance oracle, this documentation will guide you through the integration step by step.