Blockchain oracle services are the bridge between blockchain and the real world, allowing smart contracts to access data outside of their native network. In other words, they act as a link between on-chain applications and off-chain data.
Thus, off-chain events can be expressed as on-chain events that smart contracts can recognize. This information can come from all aspects of daily life, from token or stock prices to football match results or even weather forecasts.
Blockchain oracles can also verify that data is accurate, although they are not the data source itself, but rather an additional layer that collects and verifies information and transmits it to the right destination.
Blockchain oracles can also be used in contractual agreements. For example, you and your friends can bet on a football match in this way: first, you both agree on the terms and lock the bet funds in a smart contract. Then, the blockchain oracle informs the smart contract of the result of the match. Finally, when the match is over, the smart contract releases the funds to the winner of the bet.
Blockchain oracles can be classified into several different types, including software oracles, centralized oracles, decentralized oracles, input oracles, and output oracles. Essentially, how a blockchain oracle works depends on the purpose for which it is built.
So what is a Binance oracle?
Smart contracts rely on oracles to feed them the necessary information. Without the help of an oracle, smart contracts cannot interact with external data. In this respect, Binance Oracle is similar to other blockchain oracles—it is a data service provided by Binance that is committed to providing reliable and secure on-chain data for blockchains.
Binance Oracle is currently built for BNB Chain, but may be applied to other blockchains in the future. In addition, all projects built on BNB Chain can use Binance Oracle services.
The BNB Chain ecosystem benefits from Binance Oracle in many ways. First, as the native blockchain oracle of BNB Chain, Binance Oracle improves the credibility of its blockchain data. Secondly, the data provided by Binance Oracle is more reliable, bringing new possibilities to new and old projects.
Finally, Binance Oracle can attract new developers to join the BNB Chain ecosystem. With Binance Oracle, any developer can connect their BNB Chain-based projects to off-chain data, saving the trouble of maintaining existing data and mining new data sources, while avoiding the risk of using unreliable data.
