Binance Chain, the blockchain created by the prominent Binance crypto exchange, will use the Band Protocol. With the decentralized data oracle, Binance will determine prices for over 600 trading pairs. The partnership between Binance and Band Protocol was officially announced this week.
Band Protocol uses a technology that connects crypto exchanges in order to determine prices. As the industry needs more decentralized options, the service was created to connect different decentralized platforms in a fully decentralized way. This way, multiple sources can confirm prices.
This service is very useful for a decentralized blockchain such as the Binance DEX. With the Band Protocol, the users can swap tokens via atomic swaps from one platform to the other one without even needing to use any third-party program to do it. With the new announcement, it is possible to make atomic swaps between Binance’s BNB token and the Ethereum exchange, for instance.
The CEO of Binance, Changpeng Zhao, affirmed that this kind of partnership is set to accelerate the growth of the decentralized finance industry in the world and, because of this, cryptos would definitely become more popular in the near future.
Unlike services such as Chainlink, the transactions made using Band Protocol are always available on-chain. Right now, the protocol is live on the Ethereum blockchain and it is starting integrations with several other services to expand its reach.