Imagine you wanted to create a fantasy baseball DApp on the blockchain, this DApp would integrate MLB statistics into non-fungible tokens (NFTS). These NFTs would represent players and periodically update to reflect the real-world performance of the respective players. Interesting concept right?
In order for this to work, the blockchains smart contracts would be required to communicate with off-chain data and systems. In this specific situation, our MLB decentralized blockchain networks are lacking the ability to communicate with outside data.
This is where the Oracle comes in. Oracles provide a connection between the blockchain network and the outside world. This opens up the former to information from the latter.
A safe, trustworthy and reliable Oracle is extremely necessary for this to play out successfully.
This is why ICON’S recently announced partnership with ChainLink is of such importance.
Chainlink is the blockchain industry’s leading oracle solution, Google, Oracle, and SWIFT all trust ChainlLink.
Chainlink’s decentralized oracle network solves the single-point-of-failure issue that many centralized solutions currently face, ensuring reliable connectivity and end to end security to the external data on which smart contracts depend, including web APIs, cloud providers, enterprise systems, data providers, cloud providers, payment systems, IoT devices, and other blockchains.
This unleashes endless possibilities.
developers on the ICON blockchain could use Chainlink to bring data from traditional markets for the purpose of creating decentralized financial products such as variable-rate blockchain-based bonds. They could also use it to trigger a cryptocurrency payment on the ICON network after confirming a payment that happened on the Ethereum network.
“The initial implementation of Chainlink on ICON will be an ICX/USD pricing oracle that can be utilized by any ICON DApp,” says the ICON Foundation on its Medium page. “This integration will allow ICON Dapps to easily build financial products and market places based on the USD equivalent of ICX. The possibility of decentralized applications that leverage off-chain data and systems is limitless, and we look forward to seeing what people decide to build using both ICON and Chainlink!”
The future looks very bright for both of these crypto currency projects, those who hold these crypto-assets now will likely be very happy for this choice in the near future.