Leading cryptocurrency exchange Binance has partnered with decentralized data oracle platform Band Protocol to enable the Band oracle API access to pricing data of more than 600 trading pairs on the Binance Chain ecosystem.
The partnership, which was announced on Tuesday will allow decentralized finance applications popularly referred to as DeFi apps to have access to pricing data from a reputable source such as Binance Chain while also maintain their decentralized ethos of not trusting a third party to relay the information.
This works simply through the API which connects two applications using the Band Protocol oracle API. The API will serve the pricing data of the pairs being traded. The pricing information, on the other hand, is not decided by a centralized entity but through market economics making the data as free from manipulation as it can be.
“While smart contracts can be perfected, the underlying data triggering the behavior of the contract will always harness a factor of dependency,” Binance and Band Protocol wrote in their press release. “That is, developers need scalable and reliable real-time data to build a truly robust and trustless protocol.”
Commenting on the collaboration, Binance CEO Changpeng Zhao said that,
“Binance is committed to growing the blockchain ecosystem, including the ongoing development of Decentralized Finance, an important part of the ecosystem. Binance works with many blockchain projects, including Band Protocol, to bring freedom of money everywhere, and through the help of Binance data and Band Protocol’s solutions, we can help accelerate the growth of DeFi.”
Band Protocol CEO, Soravis Srinawakoon sees this integration as a stepping stone to making DeFi more mainstream and growing the space further. In a statement, he said that,
“We are excited to work with Binance to make the promise of DeFi a reality through our OpenAPI. This enables anyone to create decentralized applications that can use Binance’s 600+ crypto data which is a great source of price discovery. What’s most exciting is that this will open doors for more finance and enterprise use cases to come as our platform can connect to any available API online.”
What is interesting about this cooperation is that Band Protocol is not already ported to the Binance Chain ecosystem. It is currently based on the popular Ethereum ERC-20 protocol. This allows any dApp built on the Ethereum ecosystem to access pricing data from the Binance Chain ecosystem without having to conform to BEP-2 standards.
Users will be able to exchange tokens between different protocols such as tokens on the BEP-2 ecosystem against those on the ERC-20 standard on the fly. This is known as atomic swaps.