Binance has added Chainlink oracles to its Binance Smart Chain platform as it makes DeFi setup much easier for developers.
Binance Smart Chain has successfully integrated Chainlink oracles to support the DeFi sector, according to an official Binance tweet. Chainlink provides tamper-proof inputs and outputs of data for smart contracts, available on any blockchain. A Binance blog referred to the integration as “good news” for developers. The Chainlink Oracle, which is a middleware piece connecting on-chain resources to the already stored data on off-chain resources, will accelerate DeFi support on the Binance Smart Chain.
— Binance (@binance) July 23, 2020
Binance and Chainlink
As Binance Smart Chain approaches the launch of its mainnet, the incorporation is aimed to serve developers and the blockchain industry at large. The integration will enable developers of decentralized apps, work faster, and more smoothly. It will also support developers using the Binance Smart Chain to build smart contracts that connect to data feeds from Chainlink. Chainlink co-founder Sergey Nazarov said:
“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.”
According to the Binance Chain Blog, Chainlink helps to instantly access a “huge collection of secure node operations, premium data sources, and proven oracle solutions for getting off-chain data and verifiable randomness.”
Speaking to Cointelegraph, Nazarov gave his opinion on the slow progress of DeFi space:
“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.”
In January, Aave Protocol, an open-source and decentralized money market protocol, announced its successful integration with Chainlink. In a statement, Nazarov expressed his satisfaction with the integration saying:
“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.”
Other Benefits of Chainlink
Apart from providing tamper-proof data for smart contracts, Chainlink also offers more advantages to developers and the whole blockchain industry. A major feature of Chainlink is its large number of security independent node operators that help developers perform better. Furthermore, the Binance Chain Blog specified Price Reference Data for DeFi and Verifiable Random Function (VRF) as proven Chainlink solutions .
With this integration, developers can explore new cases in “derivatives, crypto payments, automated asset management, and more”, the blog stated. Also, the Chainlink oracles will give Binance Smart Chain access to control asset management on the Binance Chain.
Already, Binance Decentralized Exchange allows different payment options, including its native token BNB, the USD-dominated Binance-backed coin BUSD, and others. Currently, Binance Smart Chain can change its payment options into a form of on-chain settlement.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
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