Cryptocurrency exchange Kraken will launch its own Chainlink node to provide spot prices as part of its integration with the Decentralized Finance (DeFi) ecosystem.
Kraken states that the launch of the Chainlink node “will provide the translation of cryptocurrency rates from the exchange oracle to any blockchain.” The mechanism will allow the use of the Chainlink cryptographic signature to validate the transfer of data from Kraken. The Oracle will provide real-time spot price data.
This data can be applied to decentralized applications, including derivatives contracts, lending applications, cross-border payments, stablecoins, and automated asset management protocols. Research group Kraken Intelligence will release a report detailing the risks of price manipulation and other issues in the DeFi markets so that market participants can safely seize new opportunities.
Oracles act as an intermediary. They extract external data, confirm their accuracy and authenticity, and then broadcast this data to the blockchain to execute smart contracts. Kraken VP of Product Development Jeremy Welch said the exchange is ready to provide products and services that are in demand in the cryptocurrency market. With the development of the DeFi industry, there is a need for quality data as asset security depends on it.
“We are delighted to provide DeFi app developers with access to our spot prices through the Chainlink node. Developers will not only receive accurate data, but also be confident in their origin, ”said Jeremy Welch.
Recall that six months ago, Huobi also launched the Chainlink node to provide users with access to Huobi Global data, as well as to improve its integrity.