Despite the many innovations brought about by blockchain technology, blockchain itself does not come with market data. To remedy this, marketing and asset management firm Galaxy Digital has partnered with blockchain oracle provider Chainlink.
In an announcement sent to Cointelegraph, Galaxy highlighted that the company will provide crypto price data to blockchains through Chainlink. The company believes that with this information, smart contract developers will have the ability to build more advanced decentralized applications (DApps).
Galaxy’s head of strategic opportunities, Zane Glaber, told Cointelegraph that he believes the merger will have a positive impact on the blockchain ecosystem. He explained.
“Blockchains do not come pre-loaded with external data, so we are providing reference values for spatial digital assets that can power the various complex financial structures that are part of our existing financial system.”
According to Glauber, market data will be useful for decentralized finance (DeFi) primitives and dapps because these products require reference values that can be embedded in smart contracts. “The development of these future products must be in order to preserve the total value locked in DeFi applications and support the future development of the ecosystem,” he said.
Yasser Jazowan, CEO of ChainLink, also commented on Galaxy’s move. Jazouane says high-quality pricing data is key to unlocking a variety of use cases throughout DeFi. “High-quality market data will support the DeFi economy,” he said.
Related: Nasdaq is reportedly developing a crypto custody service for institutions.
While DeFi still seems to have a lot of potential for development, the space is still beset by hacks and exploits. Just recently, Profanti, a vulnerability in the Vanity Wallet address generator, was exploited by hackers. As a result, several wallets lost around 3.3 million worth of crypto assets. More than a week later, another wallet address was attacked, resulting in a hacker stealing nearly $1 million in Ether (ETH).