BraveNewCoin (BNC), a data and research company focused on the blockchain assets industry, has launched ‘Pricing Oracles’ for cryptocurrency Smart Contracts. These contain daily price information, specifically Time-Weighted Average Price (TWAP) data, for various cryptocurrencies including Bitcoin, Ethereum, Ripple, Litecoin, Monero, Maidsafecoin, Factom, Dash, Synereo and Steem.
Financial Data Oracles can be useful for different applications, from creating custom cryptosecurities to making new programs, such as wallets, trading bots and distributed applications. “Digital Assets like bitcoin are now a fully fledged exciting new Asset-Class. Blockchain Oracles represent a new delivery system for financial data. We are now a step further down the road to truly decentralized finance,” says Fran Strajnar, BNC CEO.
BNC Head of Business Development, Rory Manchee, describes a future where a Corporate Treasury working with new programmatic blockchain based tools could hedge their exposure to a currency using daily averages. “The amount they need to hedge will change as the price fluctuates, and settles on the last day’s price of the contract. But the amount may have moved with the rolling daily average.
There are collateral management tools out there, but Smart Contract Oracles will offer more flexibility and greater risk management. Further ahead, once we really see mainstream finance move to a more smart-contract based infrastructure, I see the opportunity to use Oracles to manage the cash flows of the underlying assets in a structured product.”
Manchee adds: “Smart Contract Oracles could also manage the distribution of cashflow – in the form of the coupon, based on the water flow repayment structure for the different risk-based tranches – and provide better market valuation on the mortgage backed security itself. It’s traditionally a complex process.”
Ethereum founder Vitalik Buterin commented on the launch of BNC Pricing Oracles: “Oracles are an important part of the Ethereum smart contract ecosystem and are crucial in bringing many applications to fruition; we look forward to seeing more interesting dapps be built on top of these kinds of services.”