The Chainlink integration is intended to catalyze the DeFi development on Avalanche

Avalanche, a faster and cheaper alternative to Ethereum, has integrated data feeds from Chainlink, the market-leading blockchain oracle.

Intelligent contracts with entered external data such as price feeds are driving a growing decentralized financial economy (DeFi) of credit apps, decentralized exchanges and price-sensitive derivatives markets.

These types of decentralized applications (dapps) are built on the high throughput Avalanche platform, which went live in September 2020. Avalanche is similar in some ways to other base-tier blockchains such as Solana and Binance Smart Chain, but with a novel consensus system and better compatibility with Ethereum-based smart contracts.

Adding Chainlink data feeds to the mix will fuel a DeFi ecosystem on Avalanche, said John Wu, president of Ava Labs.

“There are over 225 projects that are based on the Avalanche ecosystem, many of them in integration mode and waiting for some features such as oracles from Chainlink,” said Wu in an interview with CoinDesk. “Some big stablecoins will soon be on their toes. That’s why we’re so excited. ”

Historically, DeFi and blockchain oracles emerged around the same time, said Chainlink co-founder Sergey Nazarov.

“This is no coincidence,” Nazarov told CoinDesk in an interview. “The dynamic of DeFi is that you really can’t build it without external data. DeFi is what we call ‘a hybrid smart contract’ in the sense that it combines on-chain code and off-chain systems. “

The Chainlink network is really a collection of many services that provide various specific data inputs, said Nazarov, where price data informs DeFi, enables random number generation games, weather data opens up other use cases and so on.

“In the industry, it was about this one smart contract for tokens. Then it went to tokens plus voting and then tokens and voting with external data, “said Nazarov, adding:

“Tokens are like the unencrypted e-mail in our industry; they are the beginning. Now we are opening up the whole universe of what you can build. “

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