Binance Smart Chain will integrate Chainlink data oracles to enhance DeFi

Binance Smart Chain, the blockchain platform of the cryptoexchange Binance, now integrates the Chainlink data oracles (LINK).

Binance Smart Chain adds smart contracts to the original exchange chain, Binance Chain, and is currently on testnet.

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Chainlink co-founder Sergey Nazarov told Cointelegraph that he believes this integration will save time and effort Bitcoin Storm for developers who are building decentralized applications on the blockchain platform:

„With the integration of Chainlink, Binance’s intelligent chain developers will no longer have to spend months of engineering time creating their own oracle infrastructure. Now, they can simply use Chainlink as an abstraction layer to build secure and reliable universally connected intelligent contracts.

According to Binance, this integration will allow it to expand the usability of its contract-enabled intelligent block chain; in particular, in areas such as decentralized financing, payments and asset management.

Most blockchain platforms, and Binance Smart Chain is no exception, are not capable of interacting directly with external data sources. The aim of this is to make your environment more secure, however, it reduces your ability to use it. The importance of solid oracalized data for the DeFi space has come to the fore due to recent exploits.

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Oracles are essential for the growth of DeFi

Nazarov believes that secure oracles are essential for the DeFi space to grow as a whole, which points to Aave’s recent success.

He said, „What has been holding DeFi back is the need for teams to build the infrastructure and at the same time build their financial products. It is no coincidence that DeFi’s growth coincides with a growing abundance of oracle data quality.

„DeFi’s projects can be launched and built in a matter of weeks rather than months. We’ve already seen great success stories like Aave, which launched using Chainlink earlier this year and has grown rapidly to over $500 million in insured value,“ he added.

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LINK 30-day exchange volume

Binance is the main exchange for the LINK token as in the last 30 days it processed almost a third of the total trade volume. The additional integration between the two projects adds up on several levels.