Binance, the world’s largest and liquid cryptocurrency by adjusted trading volumes, and ChainLink, a blockchain-based decentralized oracle provider, are connecting.
In a move that will draw more attention to decentralized finance (DeFi) projects, billed as the next frontier in blockchain, Binance said they support the growth of the sub-sector. For that reason, they will be connecting “a wide variety of their market data” to blockchains through their partnership with ChainLink with an underlying goal of improving blockchain interoperability and efficiency.
Changpeng Zhao, the CEO of Binance, said:
“At Binance, we are committed to growing the blockchain ecosystem. We support the development of Decentralized Finance as an important part of the ecosystem. Binance works with many blockchain projects, including Chainlink, to bring freedom of money everywhere, and through the help of Binance data and ChainLink’s network, we can help accelerate the growth of DeFi.”
ChainLink and the Oracles Market
The Oracle market is one of the fastest-growing in the cryptocurrency and blockchain sphere, and ChainLink is the undisputed leader, perhaps light years ahead of the competition. ChainLink is known for building Oracles, tools that are valuable and needed for smart contract functionality.
An Oracle is a portal used by a smart contract for data connection or retrieval outside of its native blockchain. With access to secure and approved Oracles, the power of smart contracts will be unbound and won’t be limited to tokenization. Access to external and prized data encourages interoperability, making the space more wholesome.
Shooting to fame and dominating headlines in Q1 2019, ChainLink and its native token, LINK, has grown by leaps and bounds days after their partnership with tech and finance companies like Google.
Through their smart contract agnostic platform, different blockchains can easily connect to their APIs, allowing smart contracts to communicate and get data from trusted sources relaying audited, tamper proof inputs.
The Gem in Binance
As the world turns to DeFi products, trusted and reliable data should exist for the smart contract revolution. Smart contracts are integral to DeFi applications since the objective of the product is not only to build financial products but also ready the world for blockchain.
Binance declared that they offer industry standard APIs through which third parties can access 637 trading pairs via web sockets. As a scalable and secure breeding ground for price discovery, the exchange intends to channel their data to the secure Oracles of ChainLink, convinced that their market data should be accessible for DeFi applications.