Binance announced the successful integration between the decentralized oracle platform Chainlink and its smart contract blockchain, Binance Smart Chain.
The integration is on a root level; that is, the Oracles would need no support for the Ethereum network since they would be running directly on the Binance Smart Chain. This constitutes a significant advance in the development of the young Smart Chain while contributing to expanding Chainlink’s reach as a fully functioning ecosystem.
Binance and Chainlink: a Good Decentralized Symbiosis
The announcement was published directly on the official Binance website. The exchange team assures that now, all the smart contracts running in Binance Smart Chain will be able to be integrated with the Chainlink oracles:
By integrating Chainlink, Binance Smart Chain can now support a robust ecosystem of externally connected DeFi applications and numerous other smart contract verticals such as gaming, insurance, and supply chain management. Chainlink oracles are accessible on Binance Smart Chain without any dependencies on Ethereum.
Right now, Binance maintains two distinct blockchains: The Binance Chain, capable of processing large volumes of transactions quick and cheaply, and the Binance Smart Chain, a little slower but geared towards the development of a decentralized ecosystem thanks to its support for smart contracts.
In other words, the Binance Chain would be a first-generation blockchain (similar to Bitcoin or Litecoin). Simultaneously, the Binance Smart Chain would be a second-generation blockchain (similar to Ethereum, Tron, N.E.O., or E.O.S.).
The Binance team explained that their blockchain was already compatible with several price feeds and provided non-manipulable and reliable information from third parties. The need for reliable information is key to developing the DeFi ecosystem and has been one of the most exploited flaws in several different protocol hacks.
For example, recently, the Value DeFi protocol lost more than $6 million after a hacker exploited a vulnerability through a flash loan. The hacker was able to do this because Value DeFi used a centralized oracle to determine the prices of the various crypto assets with which it operated.
Shortly after the hack, Value DeFi announced that it would use Chainlink oracles to prevent future attacks.
What Chainlink Does, It Does Well
Many businesses already recognize the potential of decentralized oracles. For the moment, Chainlink is the best and most well-known decentralized oracle provider on the market. Binance thus becomes one more project among the 347 that benefit from this technology.
Among other projects that support or benefit from Chainlink are SWIFT, Google, Oracle, Orion, CoinGecko, Hyperledger and Tezos, as well as DeFi ventures like C.R.E.A.M. Finance, Crypto.com, Kyber Network, Kava and Synthetix
Beside Chainlink’s price feeds, Binance is also integrating its Verifiable Function (VRF) on the Binance Smart Chain. By doing so, the blockchain will have wider usability thanks to its new provably fair source of on-chain randomness.
This function can be used in different situations like voting, juror selections, token sales, etc.