Binance is getting on the decentralized finance cart (DeFi) through the integration of its Binance Smart Contract (BSC) platform with the data provider Chainlink, according to an official post. The collaboration was announced on Thursday of last week.
Enter the DeFi market
The integration highlights Binance's intention to create an alternative platform for Ethereum dapps, particularly aimed at the DeFi market, which is currently very popular. Chainlink provides data from on-and-off chains known as oracles for decentralized applications (dapp).
The network integrated with numerous DeFi projects such as bZx in the first half of 2020. Binance published the white paper of its smart contract platform in April (it is currently preparing for a mainnet version).
The exchange said that the platform was not to compete with Ethereum, the largest dapp blockchain by market capitalization with around $ 25 billion, but to complete it at the most.
For example, BSC projects are interoperable with the Ethereum Virtual Machine (EVM). However, Binance has listed numerous metrics within the document such as transaction speed, latency and scalability within its Proof-of-Stake (PoS) and Proof-of-Authority (PoA) hybrid consensus algorithm that would beat Ethereum.
Binance and Chainlink for a single goal
Binance has not made official statements to the press, but the integration with Chainlink and the assembly of a new set of tools to enter the DeFi market also speak more clearly of Binance's intentions.
“The programmatic functionality of Binance Smart Chain allows developers to create DeFi applications for loans and derivatives. These DeFi applications can generate market prices, tap into liquidity or make deals based on Binance DEX data, "Binance wrote in the post.
These new features combined with BSC's pre-existing metrics and features make its compatibility with Ethereum an even more feasible two-way street: dapps on BSC will work on Ethereum, but even those on Ethereum will be able to migrate more easily to BSC .
"Chainlink adopts an agnostic approach to blockchain that allows the highest quality data providers to make their way on advanced smart contract development platforms such as Binance Smart Chain," Chainlink co-founder Sergey Nazarov told the media.
Ethereum still has a strong advantage. The protocol saw its first major DeFi project, MakerDAO, active in 2015. Five years later, DeFi became the "IT" project that everyone wants (but few understand) with around $ 3,25 billion of resources stuck on various products. based on smart contracts, according to DeFi Pulse. At the moment, other blockchains such as Tezos and BSC are trying to keep up with the technologies of the sector.
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