Chainlink founder Sergey Nazarov and Bank of America (BofA) analysts, who came together at an investor meeting recently, made heartwarming statements about the real usage areas and future of the oracle platform. BofA says its altcoin project is leading the DeFi market. As Kriptokoin.com, we are transferring the details.
This altcoin project shines a light on the DeFi industry
Decentralized finance (DeFi) was one of the key themes in the cryptocurrency business in 2021 as the industry grew from $18 billion a year ago to over $250 billion . While Ethereum takes all the credit for the emergence of DeFi, and rightfully so, a new analysis sheds light on Chainlink, the unsung hero of the DeFi movement.
Chainlink hasn’t gotten enough credit for its role in the emergence of DeFi, according to a study published today by Bank of America (BofA). Following an investor conversation with Chainlink inventor Sergey Nazarov, the bank’s analysts have prepared a study claiming that Chainlink will likely lead the deployment of blockchain technology to a variety of different industries, including gaming, banking and gambling.
Bank of America: Chainlink contributed to the emergence of DeFi
DeFi is a broad term that includes various services, but its essence is that it refers to financial services provided without the need for a central intermediary. It could be decentralized exchanges like Uniswap or credit and borrowing protocols like AAVE. These systems must function properly from unobstructed platforms. Take, for example, AAVE, a loan and lending platform. Since it is an Ethereum-based platform, it can only source data that is only available on the Ethereum network. However, it needs data from other blockchains, exchanges and other sources.
ChainLink oracle platform is useful in this case. This decentralized oracle network collects information from various sources and makes it suitable for platforms. According to Bank of America, the rise of DeFi in 2021 was “triggered by the ability of hybrid smart contracts, or self-executing and vandal-proof digital agreements, to verifiable and securely access real-world data such as market prices, time.”
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