ChainLink is one of the most exciting solutions for providing external data for blockchain-based applications. ChainLink’s Price Oracles in particular are currently experiencing a real breakthrough. It turns out that Price Oracle is well on the way to becoming the new industry standard in data sources for DeFi applications. In addition, the Kyber Network lighthouse project now integrates the price feeds into token swaps.
ChainLink Oracles – new standard in the DeFi sector?
ChainLink is not just one of the most exciting protocols based on blockchain technology. Rather, ChainLink is establishing itself as the solution for price oracles. It shows that the oracles are primarily used in the area of decentralized finance (DeFi) . On June 12, the Kyber Network (KNC) also announced that it had integrated price feeds with its own token swap service, KyberSwap.
Although KyberSwap is a well-known DeFi lighthouse project, it is not the first time that ChainLink’s solution has been adapted by an appropriate company. Rather, KyberSwap is the third company to integrate ChainLink’s pricing data this month. As a result, it emerges that ChainLink is developing a certain dominance in this niche market.
In the case of the Kyber Network, this means that the price references shown for token swaps now come from two different data sources. On the one hand, the native data of the Kyber Network and the data from the ChainLink Oracles now exist.
KyberSwap integrates ChainLink pricing data
With KyberSwap, one of the most important DeFi projects has now integrated ChainLink’s price data. The company recently announced in an official blog post that the integration of data serves to protect users. The new data is intended to protect investors who carry out token swaps from a sharp drop in prices and from market manipulation.
“KyberSwap is pleased to partner with a reputable project like ChainLink and its decentralized Oracle network to provide reliable price feeds for our token swap platform and improve the overall user experience.” – Sunny Jain, Product Manager at KyberSwap
Johann Eid, Product Manager at ChainLink, also commented on the integration of his own service in one of the most important DeFi projects. The manager noted that the entire company was pleased about the integration of the reference data in KyberSwap. The focus is on important values such as increasing security and more valid market data.
Price Oracle’s role in the DeFi sector
Overall, ChainLink is experiencing phenomenal market growth. One reason for this is the excellent solution the company has made available to the market. This allows companies to use the ChainLink solution to transfer sensitive data to the blockchain without storing it on the blockchain.
In particular, price data must be updated continuously. As a result, ChainLink’s solution is also suitable here to ensure that it is up to date. Seen as a whole, it turns out that the price oracles are well on their way to becoming the new industry standard. In June alone, at least three DeFi projects implemented the integration of the data.
AVA also announced on June 2, 2020 that they have started integrating ChainLink’s price feeds. In this way, the developers should always receive the latest price data in order to take this into account for further development. Especially for developers who program the applications on the AVA network, they need to have an insight into the latest market data before starting the main network.
In the long term, ChainLink could benefit from the current development, because more and more companies recognize the potential of the Oracle. As a result, the company not only provides feeds of financial data, but basically access to all real-world information. Using the relevant data, completely new business models could be developed and the decentralization of the known financial world promoted.
Conclusion: ChainLink on the way to becoming a standard
ChainLink is undoubtedly one of the most interesting blockchain projects. In our ChainLink forecast, we already dealt with a wide variety of analyst ratings. Overall, there is a positive consensus for the further development of this project.
A positive influencing factor for the further development of the course is likely to be the increasing use of ChainLink Price Feeds.
Important projects such as KyberSwap or AVA have already integrated the solution. In June alone, three important DeFi projects integrated the price feeds. Accordingly, the solution continues to gain acceptance and relevance. Should ChainLink establish itself as a new standard, this could have a lasting impact on the further development of the project and positively influence the course of the LINK token.