Binance Smart Chain, a dual-chain architecture from Binance crypto exchange is integrating Chainlink (LINK) data oracles.
Binance Smart Chain adds smart contracts to Binance Chain and is currently in testnet.
.@Binance Smart Chain has integrated #Chainlink as its oracle live on testnet! Using Chainlink gives devs access to off-chain data (e.g. @Binance_DEX), enabling them to build DeFi dApps for derivatives, crypto payments, automated asset management and more. — Chainlink – Official Channel (@chainlink) July 23, 2020
Chainlink co-founder Sergey Nazarov says on the integration:
“With the Chainlink integration, Binance Smart Chain developers no longer need to dedicate months of engineering time to set up their own oracle infrastructure. Now, they can simply use Chainlink as an abstraction layer to build secure and reliable universally connected smart contracts.”
The integration will allow it to expand the usability of its smart contract enabled blockchain; in areas such as as:
decentralized finance
payments
asset management
Most blockchains, and Binance Smart Chain is no exception and cannot directly interact with outside data sources.
This is meant for enhanced security, however, it narrows down its usability.
The importance of robust oracalized data for DeFi has come to the forefront with recent exploits.
Nazarov believes that the availability of secure oracles is essential for the growth of DeFi space as a whole.
He says “What has been slowing down DeFi is the need for teams to build infrastructure while also building their financial products.”
It’s not a coincidence that the growth of Defi coincides with a growing abundance of high quality oracle data.
Nazarov further adds:
“DeFi projects can be launched and built in a matter of weeks rather than months. We’ve already seen huge success stories like Aave, who launched using Chainlink earlier this year and have rapidly grown to over $500MM in value secured.”
Binance is the dominant exchange for the LINK token as over the past 30 days it processed almost one-third of the total trading volume. The further integration between both the companies adds up on several levels.
Source: Cointelegraph | Image: Unsplash
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