ChainLink (LINK) Welcomes Kaiko as Official Node Operator And Data Provider
Kaiko is a cryptocurrency data providing service and it has entered into a partnership with another famous decentralized data vending platform chainlink.
The integration would see Kaiko providing cryptocurrency market data to the Chainlink's decentralized network of Oracles. The announcement came a month earlier and now it seems that the integration is finally complete.
Kaiko is now able to provide accurate and secure data feeds for thousands of smart contracts. Apart from providing accurate data, Kaiko also became an official node operator for Chainlink.
Chainlink, on the other hand, has debuted officially on the Ethereum ecosystem, which is one big achievement and would help the smart contract ecosystem to grow further.
The biggest problem for the long term adoption of smart contracts is the “oracle problem” which Chainlink promises to resolve with its consistent data feeds and tamper-proof node networks.
How Does Chainlink Solve “Oracle Problem” With Smart Contracts?
Smart contracts are the modern day digitized and decentralized contracts which make use of cryptography as a way to secure agreements between two parties. These smart contracts are programmed to execute on its own when pre-defined criteria are met.
However, these smart contracts cannot access any information outside the ecosystem, since they run on tamper-proof nodes such as Ethereum. However, in industries like insurance, international trade, and finance rely on a lot of external data such as pricing and supply data.
In order to make these smart contracts more dynamic and make changes as per the requirements which were not possible until the Chainlink came up with accurate and secure data feeds called oracle. Oracle acts as an external data source for these smart contracts which provide them with necessary off-chain data.
Chainlink consists of a decentralized network of oracles which can be accessed by smart contract vendors and integrated into their Dapps to provide a secure source of external data.
Chainlink has also created a decentralized network of independent nodes to verify the accuracy of a data before it gets fed into a smart contract. Since oracles are decentralized, there is no single point of failure thus, even if a couple of oracle goes down owing to some malfunction, the accuracy of external data is not hit.
With Kaiko's integration to the Chainlink data source, it can boast of more accurate and reliable data than ever before. Given the importance of cryptocurrency market data, chainlink can establish itself as the giants in the field of providing transparent secure and reliable data to the market.