Binance Debuts Oracle Service To Compete With Chainlink

Binance, the world's largest crypto exchange platform by trading volume, has debuted Binance Oracle, a decentralized Web3 Oracle that will enable smart contracts to be executed via real-world inputs and outputs.

The exchange's native blockchain, BNB Chain, "will be the first blockchain to use Binance Oracle to connect smart contracts with off-chain data to retrieve or send out information for better usability," as per the announcement posted on BNB Chain's blog Wednesday.

This puts Binance Oracle in direct rivalry with Chainlink, a blockchain that leverages a decentralized oracle network. Its native token, LINK, is the 22nd largest crypto coin in the world as per CoinMarketCap.

Oracles are services that allow a blockchain to accept data from the outside world, which means that if a blockchain needs to store the weather of a particular day or the price of a certain item, oracles carry that data from the outside world to the blockchain. Basically, it's a technological mediator that relays the data from the outside world to the blockchain. It can also be bi-directional, meaning it sends data to both sides of the aisle.

"The Binance Oracle will be a valuable addition to the scalable BNB Chain infrastructure, providing a way for 1,400 decentralized applications and Web3 ecosystem partners to access existing data sources and advanced computations," the announcement added.

The early bird program is reportedly underway, and more than ten BNB Chain projects have already integrated with the Binance Oracle network.

"Binance Oracle is chain-agnostic and will eventually support more blockchains as well," the announcement said further.

Additionally, Binance Oracle index prices will be checked via smart algorithms to avoid room for errors, and each regional domain of the service will have its own infrastructure to avoid regional disasters. A data-monitoring structure has also been created to provide real-time feedback to the developers who can identify issues.

"Using oracles to dramatically increase the smart contract's knowledge of what's going on outside of the blockchain, allowing it to respond to external events with specified actions will be crucial," Gwendolyn Regina, investment director at BNB Chain, said, according to the announcement.

Chainlink has also been expanding lately. It struck a deal with interbank messaging service SWIFT in September.