Solana’s new oracle network will enable developers to build a wide range of DeFi apps using on-chain price reference data. Among the first projects to utilize this new oracle solution is Band Protocol, an ERC-20 token that provides decentralized oracles to various blockchains including Ethereum, Binance Smart Chain, and now Solana. Other Solana-based DEXs and derivatives platforms are also in the process of integrating this new oracle network and plan to go live with the launch of their platforms soon.
In order to make this project a reality, Chainlink has partnered with Band Protocol, a decentralized oracle provider that allows users to create and validate smart contracts on Ethereum. The new partnership will allow Link to provide data from Solana to the Band Protocol platform.
Among the first projects to utilize this new oracle solution is Band Protocol, an ERC-20 token that provides decentralized oracles to various blockchains including Ethereum, Binance Smart Chain and now Solana. The essence of decentralization is trustless networks where users can interact without any need for third-party intervention but instead via consensus between each other (similarly with bitcoin). This also makes it harder for malicious actors like hackers or scammers from damaging these platforms because there’s no central point of failure in which they could target their attacks.
In case you’re new to the space, DeFi (decentralized finance) is a term used to describe the application of blockchain technology in financial services.
In its simplest form, DeFi can be thought of as the “Internet of money.” The goal is to build a decentralized ecosystem that supports all aspects of financial services — everything from payments and lending to insurance and savings.
The key difference between this and traditional centralized systems is that DeFi platforms use smart contracts on blockchains like Ethereum or EOS instead of central servers or databases. This means there’s no single point of failure or bottleneck where data can get blocked or corrupted; instead, information flows freely through an interconnected network.
Oracles are one way developers have been building bridges between blockchains and traditional databases since Ethereum was first created in 2014—but they’ve had their problems too! These data feeds provide real-time information about price fluctuations in crypto markets so smart contracts can execute trades based on those changes automatically without human intervention.”