Kadena, a hybrid blockchain platform, announced on Tuesday its partnership with Chainlink to implement its price oracle in the decentralized network.
The blockchain platform already launched its mainnet earlier this year and is planning to integrate the price oracle in the production-ready smart contracts.
“A smart contract on Kadena could offer high-volume DeFi trading of a pair of our native token (KDA) with a “KETH” wrapped ETH token. The smart contract consumes high-quality spot prices for ETH from Chainlink, while simultaneously publishing the real-time price and volume data for the KDA-KETH pair back into Chainlink” Stuart Popejoy, co-founder of Kadena, told Finance Magnates in an email response
“This is the kind of technology we are exploring, allowing a crypto instrument to have the same liquidity profile as a live-traded ETF on the stock market: you need a scalable base layer that can handle the data volume, and an ecosystem of data providers to provide resilience.”
He detailed that the platform is primarily targeting decentralized finance (DeFi) platforms, along with other financial products, with its services.
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Kadena also inked partnerships with companies in the supply chain, healthcare, and even agriculture, where IoT sensor readings of crop humidity and weather can be communicated from multiple oracle providers.
“Chainlink provides an incentivized ecosystem for high-quality data exchange, while Kadena provides a scalable and safe solution for bringing industrial-strength dApps to market,” Popejoy added.
Rising demand for price oracles
Meanwhile, with the increasing demand for DeFi platforms, the demand for data oracle services are also increasing. Coinbase also launched its price oracle services recently to get a piece of the market.
Addressing the future goals with this partnership, Popejoy said that “it is the first step towards having data markets like those offered by Bloomberg and Reuters find a home in decentralized crypto systems, but we see these systems far outpacing the “old digital” delivery.”