Oracles facilitate smart contracts’ access to off-chain data. Binance Oracle Network will be launched soon.
Binance is an oracle network for BNB chain ecosystem has launched itself. This Oracle network connects blockchain to real-world data. The Binance Oracle Network consists of ten BNB projects that are launched simultaneously.
Read more: The future of Binance Coin (BNB) in 2022
Setting up the Oracle Binance network
According to data published by DeFi Llama, BNB projects that have led to Oracle mergers in the past include some of the largest BNB blockchain teams. Among these teams can be Venus protocol (with a total locked-in value of $770 million), Alpaca Finance platform (with a total locked-in value of $510 million) and Ankr Liquid Sticking Company (with a total locked-in value of $101 million) noted.
Oracles The possibility of smart contracts accessing data outside the block chain make it possible For example, a protocol can create its own smart contract based on stock prices, macroeconomic indicators, or even weather data.
Gwendolyn Regina, Chief Investment Officer of BNB Chain, announced in a statement:
The use of oracles is very important to significantly increase smart contract knowledge about what is happening outside the blockchain space.
Binance Oracle Network Goals
Binance Oracle Network publishes the price index of the most popular digital assets. In the announcement published by DeFi Llama, there is a strong emphasis on network security. Smart algorithms check the prices for higher accuracy and more consistency.
The purpose of the Binance exchange Bringing the recovery time and the probability of network failure to zero. The exchange explained that each data feed is checked by a special signature scheme. Binance tests the network’s public encryption key to ensure the network’s impenetrability.
Hacking Oracle networks
In addition to their key role in the blockchain ecosystem, oracles are also the main source of cryptographic abuse. For example, a hacker recently managed to steal 100 million dollars from the trading platform Mango Markets.
Sam Benkman Farid (Sam Bankman-Fried), the CEO of FTX, in a Twitter message stated that Oracle’s design related to the MNGO token was the main cause of the hack. The attacker managed to get a $100 million loan after the price of the MNGO token increased. “The current price of MNGO is not even close to the fair price of this token,” Benkman Farid tweeted.
Among other cases of hacking Oracle protocols, the Curve Finance project can be mentioned. An attacker exploited a vulnerability in Oracle Curve Finance and managed to get a loan of 220 thousand dollars on the QuickSwap exchange. Polygon DEX closed its lending protocol after the attack.
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