The Reasons Behind the Partnership
The latest project to conclude its initial exchange offering (IEO) on Binance Launchpad, Harmony has partnered with Chainlink to utilize the latter’s accredited expertise in providing highly secure and transparent oracle services.
According to the post, Chainlink offers reliable and secure input and output data which is necessary for smart contracts to function on the blockchain. Chainlink’s unparalleled proficiency in developing Oracle-based solutions was one of the key reasons for the business partnership, the post reads.
For the uninitiated, an oracle is essentially a third-party source of information that can interact and exchange data with smart contracts.
Some applications developed on the blockchain require smart contracts to fetch off-chain or external data which is often dynamic in nature. Examples of such data could be the current time, temperature, and others. Oracles solve this problem by executing smart contracts when a certain predefined condition is met.
For example, a smart contract that automatically pays electricity bills would need to know the total amount to be paid and the due date. Oracles bridge the gap between smart contracts and real-world data and, in turn, leverage the impact of distributed ledger-based applications.
Chainlink helps solve this problem by providing a highly decentralized network of Oracle nodes that guarantee end-to-end data security. The platform ensures that the failure of one Oracle node doesn’t compromise the data integrity or smart contract functionality. This way, it allows DLT-powered applications to retrieve external data without having to worry about the entire infrastructure’s security.
Commenting on the partnership, Harmony co-founder, Nick White, said:
“Oracles are a key piece of the smart contract ecosystem that Harmony wants to build. Chainlink will provide a key piece of that infrastructure.”
Recent Strides Made by Harmony and Chainlink
Harmony and Chainlink are inarguably two of the hottest projects in the DLT space today.
Harmony recently announced a massive 25 million token airdrop and that it was on its way to becoming the first project to be listed on the highly-anticipated Binance decentralized exchange (DEX).