Binance announced a partnership with Chainlink, in which the exchange will connect the transfer of its cryptocurrency data to platforms that support smart contracts.
It is reported that this step is being implemented as part of an initiative to support the development of the decentralized financing industry (DeFi). DeFi protocols rely on blockchain-based smart contracts to create a decentralized infrastructure that can serve financial applications inspired by traditional finance.
Binance CEO Changpeng Zhao claims that while smart contracts can work flawlessly, you must also focus on the data they rely on. If the data that starts the smart contract is unreliable, then the contract fails no matter how good its code is.
Therefore, it is important that DeFi developers gain access to trusted data through secure oracles, and Chainlink can help. Changpeng Zhao noted:
“We support the development of decentralized financing as an important part of the ecosystem. Binance works with many blockchain-based projects, including Chainlink, to ensure free cash flow everywhere, and with the help of Binance data and the Chainlink network, we can accelerate the growth of DeFi. ”
He also said that the exchange is exploring ways to connect its platform to blockchains using Chainlink. Binance offers high-quality data that can be used by other DeFi projects. Binance provides an API that currently supports data from 637 cryptocurrency pairs. The company wants to share its data with other Dapps in the DeFi industry using the Chainlink oracle network.
“Providing access to these datasets on public blockchains enables interoperability in a centralized and decentralized world, while DeFi applications can greatly benefit from data generated by highly liquid centralized exchanges,” a Binance statement said.
Chainlink oracle technology will help DeFi projects securely access Binance offline data. To this end, Chainlink has created an external adapter that allows smart contracts to integrate data from the Binance API, which provides a connection that allows any node operator to provide data.
DeFi developers using Binance data can create various new products, including derivatives, such as futures, options, or swaps, that rely on specific cryptocurrencies or groups of cryptocurrencies. They can also automate trading around multiple data points.
“The possibilities are truly endless, given that Chainlink oracles can use any data point to trigger any action,” says Binance.
More and more companies are thinking about developing a decentralized finance industry. Ontology and Opera teamed up in July
to develop decentralized financing and applications, and in September Nasdaq launched
DeFi Industry Index.
In October, it became known that the Zcash cryptocurrency will appear
in the Ethereum decentralized finance ecosystem, and Trustology released
hot wallet for institutional investors with access to DeFi.
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