A new oracle network has been added to the BNB Chain ecosystem to help bridge the gap between blockchain data and other kinds of data. The first stages of ten separate BNB initiatives, all part of an “early bird program,” began simultaneously.
Some of the biggest teams on the BNB chain are working on projects that have already integrated the Binance Oracle. As reported by DeFi Llama, these include the lending protocol Venus ($770 million TVL), the yield farming platform Alpaca Finance ($510 million TVL), and the liquid staking solution Ankr ($101 million TVL).
Oracles allow smart contracts to use non-blockchain-based data sources. As an example, a protocol might want its smart contract to be activated in response to changes in the value of a certain security, the level of some macroeconomic indicators, or even the weather.
Gwendolyn Regina, BNB Chain’s investment director, said in a statement that using oracles to greatly improve the smart contract’s awareness of what’s going on outside the blockchain, letting it react to external events with prescribed actions, would be vital.
In the announcement, the importance of safety was emphasized. Infrastructure for monitoring data has been set up, and smart algorithms will check that pricing is correct. The network’s recovery time target, or tolerance for the outage, is “near zero,” according to Binance.
Recently, oracles, which are typically vital to the blockchain ecosystem, have become the target of crypto attacks. An attacker used a flaw in the Curve Finance pricing oracle to launch a $220,000 flash loan attack against the DEX QuickSwap. Because of the assault, the Polygon DEX stopped its lending process.
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