One of the major cryptocurrency exchanges Huobi Global becomes the first one to run a Chainlink oracle node.
The Singapore-based crypto exchange Huobi Global announced today that it is teaming up with Chainlink, the leading decentralized oracle network. The cooperation will make direct crypto exchange data accessible for smart contracts.
According to the official announcement, the major exchange is making its data available to smart contracts through the Chainlink network. Moreover, it becomes the world’s first crypto exchange that runs Chainlink node.
Blockchain oracles are services that provide smart contracts with external information. Since each blockchain acts like its own universe, oracles work like bridges between them that help to get in and out information in a secure and trusted way.
As stated, Huobi exchange will use Chainlink’s external adapters to make its own Application Programming Interface (API) available to smart contracts. This allows dApp developers to access authentic information directly from one of the largest cryptocurrency exchanges. As claims Will Huang, the CEO of Huobi Wallet:
DeFi offers a unique value proposition of providing financial products that are transparent, open, and programmable. We are very excited to accelerate our involvement in this emerging trend by providing Chainlink users access to Huobi Global exchange data, as well as running our own Chainlink Node.
The first price pairs available through the Node will include BTC/ETH, BTC/USDT, ETH/USDT and LINK/ETH. The exchange plans to offer more options in the future.
Oracles are a significant piece of infrastructure in moving blockchains beyond tokens, according to a report. They help to eliminate the risk of the unverified and thus possibly not accurate data of the third-party blockchain protocols.
Since the trusted price data is a crucial factor in decentralized finance (DeFi) services like cryptocurrency spot and derivatives trading or lending, oracles provide a critically important function for the whole fast-growing sector.
With its recent collaboration with Chain Link, Huobi however is not the first major cryptocurrency exchange to use blockchain oracles in general. Another giant crypto trading platform Coinbase already launched its own oracle a few months before for the trading pairs of BTC/USD and ETH/USD.