With the rapid growth of Decentralized Finance (DeFi), dxFeed sees a significant opportunity in using Chainlink to make the data accessible amongst DeFi’s many fast-emerging markets.
dxFeed, Devexperts’ market data and solutions unit, has launched its own official Chainlink node to sell premium financial market data to smart contract developers.
The Chainlink is the most widely used oracle network for powering universally connected smart contracts. It provides reliable, tamper-proof inputs and outputs for complex smart contracts on any blockchain.
The Chainlink node addresses the so-called “oracle problem”: the technological challenge that has kept smart contracts from reliably connecting with events in the real world.
dxFeed will use its own Chainlink node to get the existing suite of APIs blockchain-enabled, enabling to supply decentralized applications with a wide array of datasets used to trigger on-chain executions like derivative contract settlement, automated asset management, synthetic asset swaps, and more.
Some of the initial datasets dxFeed plans to make available include: the data from exchanges and OTC venues; allowing redistribution on-chain without extra licensing limitations; advanced analytics for cryptocurrency options such as implied volatility.
Through the Chainlink node, the firm can seamlessly bridge its premium API data to any blockchain network, as well as enhance the integrity of the data by cryptographically signing it on-chain to prove it was sourced exclusively from dxFeed. Not only will this help to grow the business as a data provider, but it empowers the company to actively participate in the creation of next-generation financial products that go on to redefine how people monetize and exchange value around the world.
Dmitrii Parilov, Managing Director of dxFeed, said: “We’re confident that our high standard for data quality and extensive industry experience as a reliable data provider will translate into becoming a leading Chainlink node operator. We plan to use our Chainlink node to get our existing API data infrastructure quickly connected to key blockchain networks in order to start supplying smart contract developers with unique and well-refined data insights. Ultimately, this will empower developers to build new types of data-driven DeFi products, such as those around option markets and traditional equities.”
dxFeed delivers premium financial market data directly to smart contract developers and/or applications, supporting the creation of new, highly reliable on-chain DeFi products.
Smart contracts require a middleware solution known as a “blockchain oracle” to bridge on-chain applications and off-chain data.
Oracles broadcast external data from API providers like dxFeed onto blockchain networks, where it can then be used by a smart contract to trigger an on-chain action such as executing a payment.