Monday, March 23, 2020

Chainlink Partners with Solana to Provide Price Oracle Data for DeFi Applications

Chainlink Partners with Solana to Provide Price Oracle Data for DeFi Applications

Chainlink announced a new partnership and service integration with Solana. The new collaboration aims at providing high-speed price oracle data for DeFi applications.

Briefly, they collaborate to develop an oracle service that acts as a middleware between off-chain and on-chain networks. The platform validates the security and accuracy of off-chain data that trigger smart contracts on the blockchain.

The Importance of Accurate Data

Oracle mechanism is a solution for linking off-chain data with smart contracts on blockchain networks. It assures the developers that the data gathered from off-chain sources are correct. Anyway, the oracle tool has to be as secure as possible so that the underlying blockchain can trust the data provided, and the integrity of smart contracts is kept secure.

Chainlink provides oracle solutions as a decentralized network. There are multiple chainlink nodes in a network, and the user avoids possible challenges because of one oracle going offline.

Chainlink currently provides a Price Reference Contract that offers more than 25 DeFi price feeds for various smart contracts. It uses price feeds from 30 independent data sources – nodes – and each price is backed by at least seven of those nodes.

Solana is a web-scale blockchain project that currently supports more than 65k transactions per second and doesn’t use solutions like sharding or layer-two. Its new partnership with Chainlink ai at using its oracle solution for the platform.

Solana team believes that oracle solutions can provide an opportunity for more developers to create financial products that have the benefits of blockchain and speed and usability of traditional platforms.

Solana wants to undertake the price feed challenge by cooperating with Chainlink. It tries to accelerate the development of oracle solutions for the platform with the help of Chainlink engineers.

“Backed by Chainlink’s tamper-proof inputs and outputs, we can bring immense value to the DeFi market via high-performance binary options without having to worry about ongoing security risks,” said Solana team in an announcement.

Solana has other projects to accelerate DeFi development and encourage developers to join the ecosystem. One of them is Solana Accelerator that helps developers make decentralized finance products. It provides fundraising, office space, grants, and mentorship to selected teams interested in DeFi products.


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