Kyberswap is now using Chainlink oracles for price feeds

By June 15, 2020Ethereum
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ChainLink is a decentralized oracle network built on Ethereum. The network is designed to connect off-chain data sources, such as APIs, data feeds, or bank payments, to on-chain smart contracts. The ChainLink (LINK) native token is currently the 12th largest asset on the Brave New Coin market cap table, with a total Market Capitalization ~US$1.5 billion.

The Chainlink decentralized oracle network has three approaches for preventing faulty data and reducing single oracle vulnerabilities. Data sent through the network is curated and verified through majority voting amongst nodes. This prevents a single point of failure in the oracle system.

The network also cycles through oracles and introduces a reputation and certification system for oracle performance. There are also Hardware components that are used to protect the integrity and confidentiality of data. The hardware is used to ensure tamper-proof and private data transfers between oracles and smart contracts.

When an Ethereum protocol requests smart contract data from ChainLink, every node in the network submits their data, and the nodes put LINK tokens at stake. If a node is found to have submitted bad data, its LINK tokens are distributed to the nodes in the network that submitted good data. This system incentivizes a continuous stream of honest data from decentralized sources.

Chainlinks price feeds complement the existing pricing model KyberSwap uses through its native Kyber Network protocol feeds. The original Kyber protocol white paper presents Kyber as “a fully on-chain liquidity protocol for implementing instant cryptocurrency token swaps in a decentralized manner on any smart contract enabled blockchain.”

The Kyber Network protocol allows for decentralized token swaps to be integrated into any Ethereum-based Decentralized application (Dapp). It is designed to open up value flowing between other ERC20 token communities within the Ethereum ecosystem. Kyber is currently listed as the most popular DApp on the Ethereum platform. Dappradar suggests that it has 1,300 daily users and a daily swapped volume of ~US$4.1 million.

The white paper also outlines plans to make the Kyber protocol blockchain agnostic. The network has plans to offer its solution to other platform blockchain networks like EOS through cross-chain liquidity provision. KNC will be the universal token across chains when these expansions are implemented.

In July 2019, Brave New Coin (BNC) became an official node operator for the Chainlink Network. As a node operator and market data provider to Chainlink, BNC is now helping to ensure that the crypto market data feeds provided to smart contracts by Chainlink are reliable and transparent.

The Chainlink CEO, Sergey Nazarov spoke positively about the partnership and suggests it continues BNC’s position as an early leader in the digital asset market data space. Discussing the partnership Nazarov said. “I’ve always been impressed by their willingness to push the limits of what’s possible in our space,” he says, “and we’re excited to have BNC as one of the very first high-quality data providers to also operate their own Chainlink Node.”

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