ChainLink, Market Protocol Partner For Off-Chain Asset Trading Using Ethereum Blockchain
In a Medium blog post on August 22nd, Lazar Jovanovic wrote about the new collaboration between MARKET Protocol, of which he is a community manager, and ChainLink. Much of the excitement appeared to be over the concept of integrating their decentralized oracle network, which is an essential function for transactions both within the blockchain and off-chain.
Jovanovic is clear about the benefits that MARKET Protocol will have from this partnership, saying,
“ChainLink’s reliable and secure network connections enable MARKET Protocol derivatives traders to create highly complex derivatives smart contracts. MARKET Protocol contracts can now be made using any/all market data, on-chain events, and off-chain events, which will allow them to become a superior alternative to legacy derivatives contracts.”
The goal of MARKET Protocol, as a whole, is to introduce blockchain to the derivatives market. ChainLink has a lot of experience in this type of use case, and the maturity of the network has proven that they are a safe and trustworthy platform to perform the transactions desired. Specifically, Jovanovic notes that traders will have the option of these types of transactions:
- Using smart contract to buy crypto assets
- Purchasing ICO tokens before they are available for trading or distribution
- Separating the volatility of the price of the token from its utility
- Using a single wallet to perform transactions
- Trading stocks, commodities, and other non-crypto assets
- Earning profits without borrowing assets during the decline of other prices
With the integration, Jovanovic points out that consumers will be able to trade three main types of financial assets – stocks, cryptocurrencies, and traditional assets. Just like the current algorithm, these transactions are performed through smart contracts, and MARKET Protocol remains an open-source platform. This means that users on the network will have the option to develop their own DEXs and DApps.
ChainLink is leading the industry in secure oracles, making them the best provider for MARKET Protocol to work with. By partnering with MARKET Protocol, platform users have more strength and power in their protocol and derivatives contracts. Jovanovic decided to explain the concept of the oracles a little clearer, saying,
“An ‘oracle’ is used to assure secure interaction to effectively allow private and public blockchains interactions.”
The concept is simple, but the expertise needed to follow through requires a lot of expertise to follow through.
The only way to maintain a healthy decentralized system is by keeping its integrity with the nodes on the chain. With ChainLink, their system is setup in a way that does not allow for any false nodes to be posted. The three approaches that they take is the “distribution of data source, distribution of oracles, and use of trusted hardware.”
With the collaboration between MARKET Protocol and ChainLink, the improvements to the network is “beneficial” for both companies and “the entire derivatives industry.”