KyberSwap, which is a secure platform for converting one ERC20 token to another, recently announced that it would be using ChainLink Price Reference Data to update its asset prices.
This would help a great deal to its customers when they are doing a token swap on the exchange because they would be able to utilize an on-chain oracle verification system to price assets.
Chain Link is designed to connect off-chain data sources, such as APIs, data feeds, or bank payments, to on-chain smart contracts. According to the Coinmarketcap data, the Chain Link (LINK) native token is currently the 12th largest asset with a total Market Capitalization of US$1.5 billion.
Methods adopted by Chain Link to ensure security
The Chain Link network has adopted three methods to counter faulty data and reducing single oracle vulnerabilities. First, the data sent through the network is carefully selected and then confirmed through majority voting amongst nodes. This method prevents a single point of failure in the oracle system.
The network has also introduced a reputation and certification system for oracle performance. In order to protect the integrity and confidentiality of data, certain hardware components are used. These hard wares provide secure and sealed transmission of data between oracles and smart contracts.
The white paper highlights plans to make the network agnostic and provide solutions to other platforms through cross-chain liquidity provision. According to the Kyber protocol white paper:
Kyber is a fully on-chain liquidity protocol for implementing instant cryptocurrency token swaps in a decentralized manner on any smart contract enabled blockchain.
Kyber’s ranking on Dapp
The Kyber Network protocol allows decentralized token swaps to be unified into an Ethereum-based Decentralized application (Dapp). Kyber is now listed as the most popular DApp on the Ethereum platform with more than 1,300 daily users.
ChainLink makes sure that the crypto market data feeds provided to smart contracts are secure and transparent.