Cryptocurrency exchange Kraken will launch its Chainlink node to provide spot prices as part of its integration with the Decentralized Finance Ecosystem (DeFi).
Kraken states that the launch of the Chainlink node will ensure the translation of cryptocurrency exchange rates from the oracle to any blockchain.
The mechanism will allow the use of a Chainlink cryptographic signature to confirm the validity of the data transfer from Kraken. Oracle will provide real-time spot price data.
This data can be used for decentralized applications, including derivative contracts, lending applications, international payments, stablecoins, and automated asset management protocols.
The Kraken Intelligence research group will release a report detailing the risks of price manipulation and other challenges in the DeFi markets, so that market participants can safely take advantage of the new opportunities.
Oracles act as an intermediary. They extract external data, confirm its accuracy and authenticity, and then transmit this data to the blockchain for the execution of smart contracts.
Kraken’s vice President of product development, Jeremy Welch, said that the exchange is ready to provide products and services that are in demand in the cryptocurrency market. Given the development of the DeFi industry, there is a need for high-quality data, since the security of assets depends on it.
We are pleased to provide DeFi app developers with access to our spot prices through the Chainlink node. Developers will not only get accurate data, but also be sure of it’s origin. said Jeremy Welch.
Recall that six months ago, the Huobi exchange also launched a Chainlink node to provide users with access to Huobi Global data.