Chainlink Starts Offering Price Reference Data For 25 Trading Pairs

Chainlink starts offering price reference data for more than 25 trading pairs and this kind of data is extremely important for decentralized finance applications so let’s read more in the upcoming Chainlink news today.

As of today, Chainlink starts offering data on 16 Ethereum trading pairs, nine USD trading pairs including ETH/USD, BTC/USD, EUR/USD. So far, the three sites have integrated the data and Synthetix which is an asset backing platform now also supports USD trading pairs. In the meantime, the lending platform Aave supports ETH pairs as well while Loopering added support for one pair in every category. This development marks a huge expansion for Chainlink since the platform could only show price data for seven trading pairs. Now, the data collection is the largest of its type, according to the project.

Chainlink doesn’t gather data from exchanges as CoinMarketCap does. It instead gathers data from independent node operators and these node operators are given incentives to provide accurate data. They will also undergo security reviews that are resistant to Sybil attack that could disrupt the reporting. This means that the data can be verified and audited for integrity and accuracy. It is possible to simply do so by visiting the website of the project.

As per the reports, decentralized finance services require reliable access to the market data in order to execute transactions but to also swap assets. Though some DeFi services can even make use of the basic on-chain data, is not practical for the majority of the services. Chainlink explained:

 “Obtaining the most reliable price for an asset requires aggregation from multiple off-chain data sources.’’

This is the role that Chainlink provides as an oracle provider, but there are other comparable platforms such as Band Protocol and Aeternity as well. Of course, the oracles require strict data handling which means that they are not comprehensive. This platform though is the largest oracle platform since it offers less data than market aggregators that trick the price for thousands of coins. however, as the demand for DeFi increases, the demand for oracles will likely grow along with it and Chainlink is by far the top-performing project in the category.