For cryptocurrency enthusiasts, the value of many of the big-cap tokens has more than tripled since November 2020, which is a good sign that the cycle in the beef market has already begun.

In addition to declining bitcoin (BTC), ether (ETH) and altcoins prices, every beef market in the cryptocurrency sector is driven by one or two major market enthusiasm.

In 2016-2017, ICOs, the growing popularity of holdings like CryptoKitties, and the widespread belief that blockchain was the answer to all of the world’s problems.

It is clear that in 2021, DeFi will be one of the main drivers of the current bullish trend in Ether and ALC rates that have engulfed the sector. While developing oracles may not be ahead of all analysts, it is another component that quietly creates the infrastructure needed for the cryptocurrency market, and in many projects focusing on oracles integration, token prices have risen over the past 12 months.

Oracle reliably tracks, records, and transfers various forms of data, such as prices and trade volume, to various blockchain networks and organizations interested in the data provided.

Companies like Paxos use stable currency provider and decentralized exchanges like Uniswap, and credit platforms like Maker (MKR) Oracle such as Chainlink (LINK) to provide accurate information related to cryptocurrencies.

The need for reliable and reliable data is becoming increasingly important as DeFi continues to expand and brings total value locked to record levels across multiple platforms.

DeFi’s breakthroughs demonstrate the need for oracles
In 2020, several DeFi protocols were hacked, costing investors millions of dollars because errors in unaudited code allowed hackers to thwart price changes.

These breaches highlight the important tasks of Oracle providers, who provide reliable data, up to the second rate, for cryptocurrency detection. Getting this data from multiple reliable sources reduces the likelihood of tampering and massive liquidation events that Harvest Finance used when hackers made $ 24 million by manipulating the price of coins stacked on the Curve DAO (CRV) platform.

Ensuring general consistency or even synchronizing prices and data summaries is one of the best ways to solve this problem right now, as each Oracle is organized differently in how it receives data, reconciles that data and how prices are calculated.

With Bitcoin price continuing to reach new heights and DeFi’s market value at $ 57.45 billion, ordinary investors are showing a much greater interest in cryptocurrencies and pricing decisions need to be made.

Here are some of the best Oracle-focused projects in which tokens have made strong strides in recent months.

Chainlink has the first advantage
The most famous and famous Oracle project is Chainlink. Result of ICO 2017-2018 maneuver. The project, led by Sergey Nazarov, initially raised $ 32 million to develop a decentralized Oracle network consisting of contract operators ready to provide smart contracts with access to external data flows in exchange for a reward in the form of the original cryptocurrency LINK.

LINK has become synonymous with DeFi as many price flows connecting discrete blockchains and decentralized exchanges use a price oracle to set price.

Similar to the Coinbase effect, there was a period when the mere mention of Chainlink integration caused prices to spike in the short term as it was seen as a sign of legitimacy.

On March 16, 2020, shortly after global financial markets were shaken by the sudden rise in COVID-19, LINK was trading for just $ 1.63 after trading at $ 4.80 just two days ago.

Since then, the price of LINKs has increased nearly 15 times to $ 35.69 on Jan.23, thanks in large part to the addition of LINK liquidity pools on Uniswap in the summer of 2020.

Band band protocol provides data transmission over chains
Band Protocol (BAND) is a data firewall that originally launched as ERC-20 in September 2019, but moved to Cosmos in June 2020 with the release of Band 2.0.

The project specializes in gathering real data and APIs, and then the band protocol connects the data to network applications and smart contracts to facilitate the exchange of information between data sources inside and outside the network.

In 2020, BAND price rose from $ 1.09 to a high of $ 17.51 ​​in August 2020, after which it was revised below 10. BAND is currently trading at $ 15.90 and the alt currency peaked at $ 20.62 on February 13. …

Source: CoinTelegraph