Developers of the Binance Smart Chain blockchain, which supports EVM-based smart contracts, are integrating Chainlink oracles to expand opportunities in the DeFi industry.
Earlier, the Binance cryptocurrency exchange reported that the parallel Binance Smart Chain (BSC) blockchain has “high performance of the main Binance Chain blockchain”, which will allow transactions between these two blockchains due to their compatibility. With this architecture, you can create decentralized applications and tokens on one blockchain and take advantage of fast trading on Binance DEX on another. So far, Binance Smart Chain is presented as a test network.
Chainlink co-founder Sergey Nazarov believes that thanks to integration with Chainlink oracles, Binance Smart Chain developers will no longer have to spend time developing their own Oracle infrastructure, which can take several months. Developers can now use Chainlink as an abstraction layer to create secure and universal smart contracts. Binance believes that such integration will expand the capabilities of the blockchain with support for smart contracts, especially in the field of decentralized Finance (DeFi), payments and asset management.
Most blockchains, including Binance Smart Chain, cannot directly interact with external data sources. The developers added that the integration of Chainlink oracles will increase the security level of the BSC environment, but at the same time limit its usability. However, Nazarov noted that the availability of safe oracles is of paramount importance for the DeFi industry. This is evidenced by the recent success of the Aave project, which uses Chainlink oracles. This month, Aave launched a new service that allows users to borrow without collateral.
According to Nazarov, the need to simultaneously create its own infrastructure and develop financial products slows down the development of decentralized Finance. At the same time, the growth of DeFi can be explained by the growing number of high-quality oracles.
According to a recent study Codefi, a subsidiary of ConsenSys, continues to increase user activity in DeFi applications. However, most often the same people use many products, so their user base cannot be summed up.