Binance Smart Chain Testnet Adds Real-World Data With Chainlink’s Oracle Network Integration
- Binance integrates Chainlink smart contract oracles to provide external data to the Binance Smart Chain, a dual-chain running parallel to the Binance Chain with an added capability of smart contract functionality.
Binance Smart Chain (BSC) announced the successful completion of the integration of Chainlink’s decentralized oracle on Twitter this Tuesday. The combination of Chainlink brings about ease in the development of decentralized applications on the blockchain by providing a direct link to external data sources, which saves developers time in creating their oracles.
BSC, who launched their whitepaper this April, is an independent, smart contract blockchain running parallel to the Binance Chain, allowing developers to create dApp smart contracts. It also offers programmability with the Ethereum Virtual Machine (EVM).
While blockchains offer transparent and trusted internal data, they are far from the perfect “independent tool” when it comes to creating decentralized applications in DeFi, asset management, or other industries. Blockchains must rely on oracles to collect external data, and this strategic collaboration with Chainlink will offer the right incentives. Chainlink offers secure decentralized oracles with direct access to top tier data sources through a vast array of node operators connecting to off-chain data sources or APIs. This will aid the developers in securing their smart contract environments.
Chainlink’s top executive, Sergey Nazarov, is of the sentiment that this will particularly beneficial to the developers as they no longer have to create their oracle solutions. They can leverage Chainlink oracles to secure their smart contracts. This will trim their overall operational costs and time.
He believes that developers having to build the infrastructure alongside their financial products securely has slowed down the DeFi sphere. They are directly connecting the growth of the DeFi sector that has now locked in over $3.25 Billion.
Binance officials have reiterated that the project is not a rival of Ethereum, perhaps the largest DeFi project by market cap. This is despite offering transactional speeds and being widely scalable on its hybrid platform that would challenge Ethereum’s dominance.
Notably, Huobi was the first crypto exchange to onboard Chainlink as a node operator in a bid to improve data authenticity and integrity with their pricing info. The Huobi wallet seeks to utilize Chainlink’s oracle to avail the exchange’s API to smart contracts, granting developers access to real-time price data from Huobi.