Binance Joins Hands With Chainlink
Announced on Friday afternoon through a blog post, Chainlink — an Ethereum-centric crypto project focused on providing oracle technology — has entered a collaboration with top cryptocurrency exchange and infrastructure provider Chainlink.
Connecting #Binance Data to Next-Gen DeFi Applications Using @Chainlink Oracleshttps://t.co/7ve1q3eUCk
— Binance (@binance) October 25, 2019
According to the post, the two companies will be working together to drive the growth of decentralized finance (DeFi) by connecting Binance’s cryptocurrency market data to blockchains through Chainlink’s technologies.
Changpeng “CZ” Zhao, the much-beloved chief executive of Binance, expressed his excitement for the collaboration in the following comment:
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.
The duo envisions a few key use cases for Binance’s data in collaboration with Chainlink’s oracles.
- Transaction Automation: This integration will purportedly give DeFi developers the ability to make applications that can automate transactions on Binance. “Not only will this bring greater flexibility to application development, but it can open up different hedging strategies for assets outside of the current infrastructure that’s limited to top marketcap coins,” the exchange wrote in regards to this specific use case.
- Bringing Binance’s Data On-Chain: Chainlink’s oracle system will allow for Binance’s vast data sets to be brought onto blockchains like Ethereum for an array of applications, including those in DeFi, Insurance, Trade Finance, Gaming and more.
This isn’t the only positive development the project has seen. Per previous reports from Ethereum World News, Chainlink CEO revealed that his company will be launching seven new price reference data oracle networks on the Ethereum Mainnet. This will allow developers to further implement off-chain price data into on-chain applications.
The seven new oracles networks pertain to Bitcoin, MakerDAO’s DAI, USD Coin, 0x, Augur’s REP, Wrapped Bitcoin, and Basic Attention Token.
LINK Price Update
While the Binance collaboration and the other fundamental developments aforementioned should be bullish for the development and the adoption of Chainlink’s technology, the LINK cryptocurrency has been slow to react to the recent news.
In fact, the popular altcoin is up around 3.5% in the past 24 hours, according to CoinMarketCap. While this may sound notably bullish, considering that within the same time frame, Bitcoin has rallied by 14%, and a majority of the top altcoins have surged by at least 8%.
In other words, LINK is currently underperforming the broad cryptocurrency market by a large margin.
It remains to be seen what will push LINK higher, if at all.
Title Image Courtesy of Marco Verch Via Flickr