Chainlink Oracles go live on Binance Smart Chain

The Chainlink decentralized oracle network has been successfully integrated on the Binance Smart Chain (BSC) mainnet. The oracles are now available for use for devs building smart contracts on the Binance Smart Chain. Binance says the integration used a native deployment of the Chainlink protocol that allows developers to use and pay Chainlink directly on-chain. This removes any dependencies on Ethereum, mitigating potential issues with high gas fees and network congestion.

Chainlink’s price feed oracles have been swiftly adopted across the smart contract ecosystem in 2020. They now secure over $4 Billion in USD value on mainnet for projects such as AAVE and Synthetix with integrations from Celsius, Kyberswap, and many others.

The Binance Smart Chain was designed to be an independent but complementary blockchain within the existing Binance Chain ecosystem. The dual-chain architecture allows users to seamlessly transfer assets from one blockchain to another.

The original Binance Chain was launched in April 2019 and was designed to facilitate fast, decentralized trading. However, due to the original chain’s focus on speed, it is not optimized for smart contract functionality, as this would congest the network and slow down trading.

Hence the need for the Binance Smart Chain, which now makes it possible for decentralized applications to be built within the Binance ecosystem. The Binance Smart Chain is a sovereign smart contract blockchain delivering Ethereum Virtual Machine (EVM) compatible programmability.

The two Binance blockchains will now operate independently within the ecosystem. The BSC is not a layer two solution, however, and is instead an independent blockchain that could run even if Binance Chain went offline.

The Chainlink integration

After integrating Chainlink’s oracle network, the Binance Smart Chain can now support externally connected DeFi applications, in addition to smart contract verticals such as gaming, insurance, and supply chain management. Binance Smart Chain already hosts several live Chainlink Price Feeds that developers can integrate into their dapps to trigger DeFi functions such as checking stablecoin collateralization, pricing synthetic assets, issuing fair market loans, settling derivatives contracts, and so on. Chainlink oracles also enable BSC smart contracts to fetch data from any off-chain API.

Binance says that the Proactive Market Maker (PMM) protocol DODO is already using Chainlink Price Feeds on Binance Smart Chain to price cryptocurrency assets and maximize its on-chain liquidity pools for low-slippage token swaps.

The Verifiable Random Function

In addition to decentralized price feeds, Chainlink will also launch its Verifiable Random Function (VRF) on Binance Smart Chain. Chainlink’s VRF provides a secure source of randomness that is permissionless and auditable on-chain. This provides developers and users with cryptographic proof that all random elements are provably fair, and cannot be manipulated.

This ability to create provable randomness enables the development of a range of applications. Examples include the ability to generate random NFT rewards, unpredictable gameplay scenarios in blockchain-based games, and fairly ordering users at random from a large pool of participants.

The Chainlink VRF is being used in a similar way by the Axie Infinity blockchain game. For example, in Axie Infinity, the rarest and most sought after Axies are called Mystic Axies. Each time 5 AOC tokens are burned, an Origin Axie is born with a chance of possessing Mystic parts. The chance of an Axie possessing Mystic parts is randomly determined by Chainlink’s VRF.

Developers wanting more information on Chainlink on Binance Smart Chain and read this documentation.