Binance to Work with Chainlink (LINK) to Supply Crypto Data for Decentralized Finance Apps
The giant exchange platform Binance, announced that it would join hands with Chainlink. This partnership will enable Binance to spread its crypto information and data to other blockchain technologies. The bold move was commissioned in a bid to expand the Decentralized Finance.
— Binance (@binance) October 25, 2019
Binance Believes in Defi
Currently, Defi is the talk in town despite being in its developing stage. Its protocols depend on smart contracts that are blockchain-backed to initiate decentralized infrastructures that can anchor financial applications.
Such financial services characterized by traditional finance may include derivatives trading, lending, and decentralized exchanges. Defi does not need any central authority to take control of the market all courtesy of the DLT (Distributed Ledger Technology). It also takes the role of a guardian.
Binance has always shown interest in Defi and believes it is the next big thing. The Malta-based organization inaugurated Binance DEX, which is a decentralized exchange just recently. The new exchange functions separately on its own and not from their central platform.
Binance CEO CZ commented:
“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.”
Core Objectives of the Collaboration
The duo joined hands to achieve some of the following crucial functions:
The incorporation will allow developers from Defi to create applications that will automate Binance’s transactions. The exchange said that this would bring about more flexibility in application creation and will also open up strategies for assets that are limited to market cap coins which are at the top.
Putting Binance Data On-chain:
The oracle system for Chainlink will enable Binance data to be available on blockchain technologies like Ethereum. That will include the data on insurance, trade finance, Defi, gaming etc.
Defi projects will have unlimited access to Binance data off-chain very securely. Chainlink has come up with an external adapter that smart contracts will use to merge Binance API’s data. That will ensure there is efficient connectivity and that all the node operators can submit data.
Applications created by Defi applying data from Binance can manufacture numerous new products and derivatives like options/futures that would depend on groups of cryptocurrencies.