Leading cryptocurrency exchange operator Binance has announced a partnership with Chainlink to develop Next-Gen Decentralized Finance (DeFi) applications using Chainlink Oracles.
The partnership is aimed at supporting the expansion of Decentralized Finance (DeFi) and will be see Binance connect it’s crypto data to other blockchain platforms.
Following the announcement Binance CEO, “CZ”, commented:
“At Binance, we are committed to growing the blockchain ecosystem. We support the development of Decentralized Finance as an important part of the ecosystem. Binance works with many blockchain projects 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.”
What is DeFi and Binance’s Interest in it?
Decentralized Finance (DeFi) is the movement that leverages decentralized networks to transform old financial products into trustless and transparent protocols that run without intermediaries.
DeFi has been hitting the headlines over the last several months, attributed to the rapid rise in the platforms and products offering DeFi. It employs blockchains and smart contracts as backend infrastructure to create new forms of financial applications commonly found in traditional finance such as lending, derivatives, and decentralized exchanges.
The platform has been termed as the best platform for developing new financial platforms. This is because the platform does not require users to have a central entity to create products or facilitate the movement of smart contracts.
Binance has developed an interest in DeFi following its prolonged hype even at a development stage. Binance notes that it’s a big believer of DeFi and wants to provide the platform with quick and direct access to Binance’s market data.
The partnership will involve two key use cases for Binance’s data in collaboration with Chainlink’s oracles. First, in the Transaction Automation, this use case will give DeFi developers the ability to make applications that can automate transactions on Binance. Secondly, through this partnership, Chainlink’s oracle system will allow Binance’s massive data sets to be added on blockchains such as Ethereum for additional use cases.
Commenting on the partnership, Binance notes:
“The possibilities are really limitless, given that the Chainlink oracles can use and data point to trigger some type of action.”
What You Should Know About Chainlink
Chainlink (LINK) is an Ethereum-centric crypto platform that attempts to bridge the gap between smart contracts on the blockchain and real-world applications, which often tend to be off the blockchain. The platform leverages “oracles,” which find and verify real-world data nad bring it on-chain to be integrated into smart contracts.