Chainlink (LINK) taps South Korea’s biggest banks to bolster forex and DeFi
Financial market data from South Korean banks will now feature on Chainlink’s decentralized oracles services, as announced at an event in Seoul on Friday.
Hyperledger-based CenterPrime — which has access to the APIs of top Korean banks —will now share its data feeds on Chainlink. As a result, app developers can now source their information from big-wigs like Shinhan Bank and the Industrial Bank of Korea (IBK).
The integration is a first for Korea’s broader banking system. The government has previously pushed for wider fintech efforts and investments, but none involving a public blockchain.
Top Korean banks: Hana Bank, Shinhan Bank, Nonghyup Bank, and Industrial Bank of Korea select #Chainlink and CenterPrime to bring their forex data on-chain, transforming the capabilities of open banking services, fintech and #DeFi. https://t.co/sMS24ppb1G
— Chainlink – Official Channel (@chainlink) July 25, 2020
Korea’s DeFi ecosystem to benefit
CenterPrime said they looked extensively into firms that could facilitate decentralized KRW-denominated exchange rates for use in Korean Fintech and DeFi.
“Chainlink has extensive experience building decentralized data feeds, having already created numerous decentralized price reference networks that secure over a billion dollars in value for many leading DeFi applications,” said CenterPrime.
With the partnership, dApps and DEXs can now provide nationally-verified forex data in their products. The process will be wholly-decentralized; opening the Korean market up globally on the blockchain.
For now, Chainlink price reference feeds will be deployed upon Ethereum. However, this can then be ported to other blockchain platforms through Chainlink (including both public and enterprise Korean chains).
Centerprime said the development could help propel DeFi adoption and development in the region:
“By opening up access to these key price feeds, we anticipate a major uptick in development within the Korean Fintech and DeFi market.”
It added the data will be shared on an upcoming “Public Cloud Local Currency Wallet” that can be combined with live Chainlink Price Reference Data (e.g. BTC/USD, ETH/USD, etc) to “create KRW exchange rates for cryptocurrencies.”
Chainlink’s in-demand oracles
The release said Chainlink oracles allow for a “massive explosion” in blockchain-based fintech applications operating cross-border and DeFi applications building homegrown products priced in the local currency KRW.
As CryptoSlate reported previously — oracles are finding their place on betting apps, golf games, exchanges, and, just yesterday, digital identity. The firm also received a boost last month after the World Economic Forum (WEF) selected Chainlink as one of its ‘Technology Pioneers’ for 2020.
— Chainlink – Official Channel (@chainlink) June 16, 2020
For the uninitiated, oracles are a decentralized data solution that fetches data from “outside” the blockchain to within. This is required as blockchain cannot verify data — they only provide storage.
Chainlink’s decentralized oracle network ensures any supplied data is both accurate and resistant to manipulation; ensuring reliability and security for a network. If this lapses, there’s a possibility of putting users’ funds at risk (similar to what MakerDAO underwent in April).