Decentralized oracle provider Chainlink can now be used to pull data from crypto exchange Binance and connect it to a blockchain, it announced today.
Blockchain platforms, like EthereumEthereum, can be used for a variety of innovative decentralized finance (DeFi) tools, such as decentralizeddecentralized trading or lending. To do so, these applications need access to up to date cryptocurrency prices. Yet if they use a centralized third party, there’s a risk the data could be compromised or tampered with by the provider–and it makes decentralized apps, well, more centralized.
Instead, Chainlink offers a decentralized way to connect to a data source. It uses a network of oracles (that connect to the data source) to ensure that no single party has control over the data provided.
Now, Chainlink is compatible with Binance’s data feeds. This means that DeFi applications can use Chainlink to receive accurate, real-time price data in a decentralized way–although it doesn’t guarantee Binance’s data is accurate.
Chainlink CEO EXCLUSIVE: how we’re connecting blockchain smart contracts to the real world
Smart contracts are the superstar transaction agents of the blockchain world. They automate processes, such as transferring value between users according to agreed-upon conditions; they’re secure, trackable and irreversible. And they don’t require a lawyer or other third party to enforce the transaction. But smart contracts still need to “know” what’s going on in the real world. Most of them need to access verification of external events, info they can’t find on the blockchain—such as market pri...
Chainlink has already integrated with both CoinMarketCap and CryptoCompare, two of the largest crypto price trackers. But both of these are third parties that scrape data from exchanges—providing a potential weak spot in the collection of unadulterated data.
Following the announcement, the price of Chainlink’s native token, LINK, rose 5 percent, from $1.93 to $2.03. However, a couple hours later, the price dropped to $1.90. Maybe they’re linked; who knows?
