Blockchain-powered staking liquidity and stablecoin cryptocurrency network, Acala Network has announced the news about its new strategic collaboration with oracle solution, Chainlink. The integration will allow Acala Network to enhance the user experience by providing robust and reliable price feeds for its worldwide DeFi community, working on any blockchain channel connected to the Polkadot Network.
The news was circulated through a Twitter post on the official twitter handle of the Acala Network.
Chainlink’s oracle network can be put as a Substrate-based blockchain connected to Acala’s Polkadot channel. The oracle chain can provide data feeds via Polkadot’s Cross-chain Message Passing scheme by becoming a preferred oracle provider to Acala. Acala can adopt Chainlink’s services directly in its ecosystem with a view to either use the existing mechanism as a preferred oracle service or use the module to create customized oracle networks for expanding its operations. The two leading firms are putting their efforts on a proof-of-concept to explore more fruitful opportunities. Acala collaborates With Chainlink to Support DeFi on the Polkadot Network. To know more, Chainlink latest news today will provide you better insights of Chainlink’s market value, its future and partnerships.
An oracle service provider plays an important role in strengthening the core network of a blockchain-powered solution. Where consensus algorithms are used for validation of data within a blockchain for activities such as sending tokens from one account to another, oracles help in offering a bridge between external data and the blockchain network. Acala’s stablecoin protocol requires the real-time prices of collateralized assets like DOT, BTC, etc. for the ascertainment of the network’s collateralization ratio. Price fixation happens in the centralized as well as the decentralized exchanges, and so oracles are employed to aggregate these off-chain prices and deliver it on-chain to the Acala network.
Acala’s oracle module consists of the following lucrative features such as:
- The oracle extracts data feeds from a wide range of data providers and nodes. The aggregator then combines the data to attain a single price.
- Oracle operations are considered to be transactions with high priority orders with an economical fee charge and DDoS attack protection. This helps to attain speed, ensure reliability, and cost-effectiveness.
- In the first place, the oracle providers shall be authorized and whitelisted to endure the highest security and predictability. However, moving further, the network will adopt a more permissionless and trustless module.
Ruitao Su, Co-founder of Acala stated,
We are excited to work with Chainlink, the most advanced and proven oracle solution across the blockchain landscape. The collaboration with Chainlink will help us further enhance the security and integrity of Acala’s stablecoin protocol via its secure oracle mechanism, high-quality data, and provably reliable node operators.
The Acala team collaborated with Chainlink to take maximum benefit from the unprecedented excellence of its services suite. At present, Chainlink is the only decentralized oracle solution that is offering pricing data to multiple live applications. The Chainlink nodes get data from premium APIs such as high-quality aggregators like BraveNew Coin, which offers data to the Bloomberg network. Chainlink’s Price Reference Contracts include nearly 30 DeFi trading pairs like BTC/USD, GPB/USD, etc. which collectively amount to $200M in USD. It also employs security reviewed and Sybil resistant node operators in decentralized oracle ecosystems.
Acala is all set to launch its canary network, Karura, as a parachain on Kasuma before the mainnet launch of Polkadot. The leading firm strives to innovate and develop revolutionary oracle modules for the overall industry development.