Chainlink to Expand Oracle Capabilities for DeFi

The cryptocurrency project Chainlink has acquired DECO, a private-oracle solution developed at Cornell University.

We’re thrilled about our acquisition of DECO https://t.co/GMN1yFmPoM, enabling #Chainlink to put more high quality data on-chain, by combining ZKProofs with HTTPS/TLS to prove where data came from, and even verify the data itself, while maintaining privacy.

— Chainlink — Official Channel (@chainlink) August 29, 2020

According to the press release, one of the solution’s creators is Ari Juels, a former RSA researcher specialising in digital security. He will join the Chainlink Labs team.

Co-founder of Chainlink Sergey Nazarov and Ari Juels have started writing the project’s second version of the white paper, CoinDesk reports. They are also the authors of the first version of the document, released in 2017.

Chainlink oracles transmit data from external off-chain sources into smart contracts. This approach is widely used by DeFi applications for trading crypto derivatives and synthetic assets, for example, dYdX and Synthetix.

DECO transmits data using HTTPS and TLS protocols, providing a high level of security and privacy. The solution also employs zero-knowledge proof technology, used, for example, in the privacy-preserving cryptocurrency Zcash.

According to Nazarov, DECO could be effectively used in the realms of decentralized lending and identity.

“DECO can also be useful to users who want to monetize their data (and, consequently, ensure that the provided data is correct), without revealing anything beyond these data,” the site describing the solution says.

Earlier ForkLog published a substantial feature on the reasons for the rapid rise of Chainlink’s token.

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