Binance Launches Oracle Network for BNB Chain Ecosystem

On Oct. 26, crypto giant Binance announced Binance Oracle, a new service that will source, verify, and feed off-chain data to smart contracts running on the BNB Chain.

The company claims that the Oracles will provide a “more reliable, secure, and accurate data sourcing solution for smart contracts.”

The new service, which launches this month, will enable existing Web3 dApps and BNB Chain partners to access oracle data sources. The company confirmed that more than ten projects had already integrated with the Binance Oracle network.

New product: #Binance Oracle – Enriching the #BNB Chain Ecosystem.https://t.co/31tVtxMSa9

— CZ 🔶 Binance (@cz_binance) October 26, 2022

Competing With Chainlink?

Chainlink is currently the industry standard provider for decentralized data oracles, and its community has already started to pick holes in Binance’s offering. On Oct. 27, ‘ChainLinkGod’ questioned why anyone would launch a centralized price oracle in 2022, adding:

“Docs and marketing try to make it *seem decentralized* but data is sourced and signed by Binance themselves. Introducing a single point of failure to dApps and putting user funds at risk,”

Binance stated that its oracle service will initially support index prices for the most popular digital assets, with the data being sourced from several centralized exchanges.

Furthermore, it will utilize an in-house Threshold Signature Scheme which signs on individual data feeds to prevent single points of failure.

“The authenticity of the data is also continuously verified using the Binance public key,” it stated confirming the centralization of the process.

Binance continues to branch out away from the crypto exchange business model, venturing into other areas of the industry. Earlier this month, Binance Pool announced a $500 million lending project to support the Bitcoin mining sector.

Binance is also getting stronger in the stablecoin market, with its own BUSD supply increasing to a record high of over $20 billion this week.

BNB Price Outlook

The exchange’s native token, BNB, has been relatively flat on the day, with a minor gain of 1.1%. At the time of writing, BNB was trading at $289.5, according to CoinGecko.

It has rallied over the past few days along with the rest of the crypto market, adding 6.6% in the past week. However, BNB, like its brethren, is down 58% from its May 2021 all-time high of $686. That noted, the decline has not been as severe as some of the high-cap crypto assets, which have lost over 80% since their peaks.

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