Binance: Crypto exchange launches Oracle service

With the launch of its own Oracle service, Binance has further expanded its influence in the DeFi space. Data processed in the Binance ecosystem is now also passed through the in-house Oracle system. The world’s largest crypto exchange thus completes the vision of the BNB Chain as a complete solution, wants to integrate additional partners into the network – and thus increase the pressure on Oracle provider Chainlink.

Link between off- and on-chain

Oracles play an important role in processing data in blockchain networks. They receive data, forward it to smart contracts and thereby secure applications that depend on external information being fed in. For example, flight insurance on a smart contract basis, but also real-time prices on stock exchanges are transmitted by oracles.

Oracles also ensure data exchange in the opposite direction: from blockchains to the “real world”. As an interface between data providers and decentralized networks, they therefore assume a hinge function between the off- and on-chain world.

Which has so far been covered to a large extent by Chainlink as the largest oracle network. With its own Oracle service, Binance could gradually break this monopoly.

Binance on course for expansion

According to Binance the Oracle area offers “tremendous opportunities”. By trafficking with smart contracts, they would serve “as the foundation of the Web3.” Several partners within the BNB chain ecosystem are already supported with the Oracle solution.

The exchange’s ambition is clear: the Oracle service is “another step in Binance’s journey to becoming the leading provider of infrastructure services for the digital asset industry”. Oracles are not only playing an increasingly important role in the DeFi sector, but also for supply chains, in the insurance and healthcare sectors, for decentralized identities or blockchain-based energy projects. As Binance plans to expand to other blockchains, Chainlink’s oracle network could become less relevant.