By description, the Binance Smart Chain is a dual-chain infrastructure that is developed and operated by Binance. It is now set to integrate with Chainlink (LINK) data oracles. It also adds smart contracts to the crypto exchange’s original chain, Binance Chain, and at the moment it is in the testnet stage.
Sergey Nazarov, the Chainlink co-founder, told reporters that the integration is designed to save time and effort for the developers who are creating many decentralized apps on the blockchain:
“With the Chainlink integration, Binance Smart Chain developers no longer need to dedicate months of engineering time to set up their oracle infrastructure. Now, they can simply use Chainlink as an abstraction layer to build secure and reliable universally connected smart contracts.”
Based on the official reports by Binance, the integration will enable it to expand the usability of its smart contract enabled blockchain; especially, in the areas like payments, decentralized finance, and asset management.
A majority of the blockchains, including Binance Smart Chain, cannot directly link with external data sources. That is meant to make its environment quite secure. However, it is seen to narrow down on its usability. The importance of a large oracalized data for the DeFi sector has come to the limelight with recent exploits.
Oracles Are Important For DeFi Development
Nazarov thinks that the availability of safe and secure oracles is important for the development of the DeFi space in general which is evident from the recent success of Aave. He commented:
“What has been slowing down DeFi is the need for teams to build infrastructure while also building their financial products. It’s not a coincidence that the growth of Defi coincides with a growing abundance of high quality oracle data. DeFi projects can be launched and built in a matter of weeks rather than months. We’ve already seen huge success stories like Aave; who launched using Chainlink earlier this year and have rapidly grown to over $500MM in value secured.”
Binance is currently the dominant exchange for the LINK token since it has managed to process over 30% of the total trading volume in the last 30 days. The enhanced integration between the two companies adds up on several levels.