Trading platform Binance has announced a new collaboration and partnership with the “Chainlink” project behind the “Link” coin.

The partnership will contribute to the communication of crypto data and information to other blockchain platforms.

This step is part of a series of steps aimed at supporting the expansion of decentralized finance (DeFi).

Whereas, the Binance platform is one of the biggest believers in the possibilities of decentralized finance, despite its newness.

DeFi protocols rely on blockchain-based smart contracts to build decentralized infrastructure that can host financial applications inspired by traditional finance.

Among the practical applications of decentralized finance, we find lending and trading of crypto derivatives, as well as decentralized trading, in addition to a number of other applications.

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Binance has previously launched a decentralized platform, “Binance DEX,” which works separately from its main platform.

The founder of Binance “CZ” believes that although smart contracts can be flawless, it is necessary to focus on the data that depends on them as well.

If the data that leads to a smart contract is not trusted, the contract fails no matter how well it is written and therefore it is important that DeFi developers access the trusted data via a secure oracle and this is what Chainlink can help with.

hung The CEO of Binance said:

We support the development of decentralized finance as an important part of the ecosystem.

Binance is working with several blockchain projects, including Chainlink, to bring the freedom of money everywhere

Through the collaboration of Binance Data and Chainlink, we can help accelerate the growth of DeFi.

CZ stated that Binance is exploring ways to connect its platform with reliable data with the help of Chainlink.

Binance itself provides advanced data that can be used by other DeFi projects.

Binance also provides an API that currently covers 637 crypto pairs.

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With the platform having millions of users from over 100 countries across all time zones, Binance is a good source for 24/7 price discovery.

The company wants to share its valuable data with other decentralized applications, by leveraging the Chainlink network.

According to Binance’s statement in this regard, the following:

Making these datasets available on public chains allows for interoperability across centralized and decentralized realms, while DeFi Dapps can greatly benefit from data generated by highly liquid centralized platforms.

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Chainlink technology will help DeFi projects access off-chain Binance data in a secure manner.

For this very purpose, Chainlink has built an external switch to allow smart contracts to integrate data from the Binance API, enabling a complete and flawless connection so that any node operator can supply the data.

DeFi applications that use Binance data can create a variety of new products, including derivatives such as:

Futures contracts, options or swaps that may be based on specific cryptocurrencies or combinations of them.

They can also automate trading around a variety of data points.

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