Blockchain projects often rely on reliable data. Binance Oracle consists of four aspects to ensure that its data services are accurate, timely and tamper-proof. Below is an in-depth introduction to the functions of Binance Oracle that connect BNB Chain to the real world.
Data Sources
Binance Oracle uses carefully selected data sources to ensure the accuracy of the information and the credibility of the data sources. For example, Binance Oracle obtains price data from multiple centralized exchanges (CEX) and decentralized finance (DeFi) applications and aggregates this data using a weighted average formula.
Data Processing and Signatures
Binance Oracle has data processing and signing functions designed to prevent data from being tampered with. It uses a distributed signature system called a threshold signature scheme to sign the latest data from different sources. Any public key holder can verify the accuracy and authenticity of the digital signature, but in order to change the data, a set of private keys must be held.
Data Release
Data is published on the blockchain through multi-nodes that only publish signed information. The smart contracts that store data are secure and audited, and multi-nodes can adjust the frequency of data release according to different market conditions. This means that during periods of high price volatility, smart contracts can still obtain accurate data. Multi-nodes can ensure the reliability of data release even in the most extreme situations.
Data Monitoring
Binance Oracle's independent monitoring service operates 24/7 to ensure real-time data updates. It obtains price data from different data sources and compares it with the published blockchain data. If significant data deviations are detected, the Binance Oracle customer service team will intervene.
