Great news from the Cardano (ADA) and Chainlink (LINK) camp! Cardano goes the oracles of Chainlink with its blockchain. The ADA price immediately reacts positively to the news!
In a blog post just published, it can be read that the oracles are so-called ‘hybrid smart contracts enable. While smart contracts can normally only work with data present on the blockchain, Chainlink’s oracles make it possible to work with data from outside as well. Think of price data, weather data and results of sports competitions.
NEW BLOG: Announced just moments ago at #CardanoSummit2021, our collab with Chainlink Labs gives #DeFi developers #BuildingOnCardano secure access to a wealth of real-world data through Chainlink’s decentralized oracle networks @Chainlink @Smart_Contract https://t.co/kOWFpjhtpL
— Input Output (@InputOutputHK) September 25, 2021
This opens the doors for decentralized finance (DeFi) on Cardano. Initially, the oracles will focus on providing pricing data. But more applications will follow, according to Cardano developer Input Output:
“After market price feeds will follow support for other decentralized Chainlink services: sports data for prediction markets, weather data for parametric insurance products, and verifiable randomness for gaming and digital collectibles such as non-fungible tokens (NFTs).”
In the blog post, the developer gives some examples of what smart contracts can do with oracles:
“[Chainlink oracles zullen] Deliver tamper-resistant, high-quality external data to blockchains, enabling “smart contracts” to be executed around data sets such as election results, sports stats, and cryptocurrency prices. Another example that can be very helpful is providing weather data. Chainlink Labs has partnered with several FinTech startups seeking to enable parametric insurance in Sub-Saharan Africa. Secure, verifiable and robust weather data is an important input for such parametric insurance contracts.”
Immediately after the news, the ADA price received a boost of 5%. ADA is currently the fastest climber in the top 10 and is more than 8% higher than 24 hours ago. This while the rest of the cryptocurrencies in the top manage to rise between 1 to 2%.
The big announcement was made during the Cardano Summit 2021. More interesting collaborations are expected to be announced during this event. Another collaboration between Ardana and COTI was recently announced. You can read more about this in this article.