Binance plans to use a bridge between the Syscoin and Ethereum blockchains to move Binance USD (BUSD) between them

Binance plans to use a bridge between Syscoin and Ethereum to move Binance USD (BUSD) stablecoin between them. The bridge developed by Blockchain Foundry – the company that powers the Syscoin Blockchain – will allow BUSD holders to move tokens between the Ethereum and Syscoin blockchains. This will also make stablecoins available on the Syscoin blockchain for the first time.


Binance to transfer BUSD across Blockchains on Syscoin-Ethereum bridge

Binance stated:

“Users can take advantage of Syscoin’s fast, scalable, and low-cost transactions while also preserving the ability to leverage Ethereum’s smart contract functionality. Also, help provide more use cases for BUSD holding users.”

The growth in the use of decentralized financial services and stablecoins has led to the Ethereum transaction fee rising to its highest level in two years. Yesterday, Ethereum co-founder Vitalik Buterin commented on the ongoing problem and warned that increased transaction fees could undermine the security of the network.

Jagdeep Sidhu, the co-founder of Syscoin and leading core developer, said:

“Stablecoins will increasingly be used as a quick way to transfer value across blockchains. In the specific case of issuer-backed stablecoins, there are lots of things that could be done but aren’t, eg. every stablecoin could be an instant cross-chain bridge!”

Looking to the future, Sidhu said:

“Syscoin is also exploring opportunities to integrate with other blockchains and specific discussions on the matter are already underway. Ethereum was an obvious first choice due to its nature as a proven smart contract platform and the pressing need for the benefits Syscoin can provide its network, including scalability. Future integrations will be carefully chosen according to the utility value they add to the ecosystem and how they can benefit adopters such as Binance.”

Binance’s Smart Chain will integrate Chainlink data oracles to add usability to its blockchain

Elsewhere, Binance Smart Chain is now integrating Chainlink (LINK) data oracles. In particular, this integration will save time and effort for developers who are building decentralized applications on the blockchain.

Chainlink co-founder, Serge Nazarov:

“With the Chainlink integration, Binance Smart Chain developers no longer need to dedicate months of engineering time to set up their own oracle infrastructure. Now, they can simply use Chainlink as an abstraction layer to build secure and reliable universally connected smart contracts.”

According to Binance, this integration will allow it to expand the usability of a smart contract-enabled smart blockchain; in particular, in areas such as decentralized finance, payments, and asset management.

Most blockchains and Binance Smart Chains are no exception, unable to interact directly with external data sources. This means making its environment more secure but narrowing its usability. The importance of strong oracalized data for the DeFi space has been at the forefront of recent exploits.

Oracles are essential for the development of DeFi. Nazarov believes that the availability of secure oracles is essential to the development of the DeFi space in general, pointing to Aave’s recent success.

He said:

“What has been slowing down DeFi is the need for teams to build infrastructure while also building their financial products. It’s not a coincidence that the growth of Defi coincides with a growing abundance of high-quality oracle data. DeFi projects can be launched and built in a matter of weeks rather than months. We’ve already seen huge success stories like Aave, who launched using Chainlink earlier this year and have rapidly grown to over $500MM in value secured.”


LINK 30-day exchange volume | Source: Nomics

Binance is the dominant exchange for the LINK token because in the past 30 days it has processed nearly a third of the total transaction volume. Further integration between the two projects adds up on many levels.

Read more:

Follow us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like