Blockchain markets have seen tremendous growth the past year due to the rapid developments happening in Decentralized Finance (DeFi), a parallel financial ecosystem of blockchain protocols/smart contract applications that allow anyone with an Internet connection to develop and purchase financial products without trusted intermediaries. As a market-leading vendor of Forex (FX) data and other financial datasets, we see a large opportunity to supply our financial market data into these new blockchain markets to expand our reach as a data provider while also supporting the next generation of DeFi applications.
To accomplish this objective, we will be launching our very own TraderMade Chainlink oracle node to sell signed FX data directly to DeFi applications across all the leading blockchains. Being the most widely used secure middleware in the blockchain industry, Chainlink’s oracle technology allows us to get blockchain-enabled across any current and future blockchain, serving as a gateway for making our entire suite of APIs available to smart contract developers within the DeFi market. Not only does it provide us with a bridge to transfer API data to blockchain networks, but our Chainlink node can cryptographically sign data to prove its integrity as being direct from the TraderMade API, preventing any type of man-in-the-middle attack. This bootstraps additional security of our datasets, allowing them to be even more trusted to trigger the automation of key DeFi protocol functions.
Using Chainlink to Support DeFi’s Expansion Into Forex
TraderMade is a market-leading vendor of fintech solutions, supported by a first-rate customer service team. TraderMade’s Forex API provides rates for over 40+ fiat currencies, cryptocurrencies, precious metals, commodities and equity indices. It features over 1,700 currency trading pairs, live FX rates (Bid, Ask, and Mid rate), historical currency rates (Open, High, Low, and Close), live streaming data updated to the millisecond, historical FX rates that go back to 1990, proprietary aggregated feeds, Tier 1 bank rates, and more.
While DeFi markets have initially been seeded by financial applications built around cryptocurrency assets, we believe DeFi is primed to start expanding into additional assets classes like fiat currency, commodities, precious metals, equities, etc. This opens up a perfect opportunity for TraderMade to supply this next wave of DeFi applications and protocols with high-quality data, opening up possibilities like Forex-based synthetic asset swaps, commodity-based future contracts, equities-based prediction markets, and tokenized precious metals as loan collateral, among others.
Since blockchains derive their security from being closed networks that are disconnected from the outside world, blockchain-based smart contracts have no built-in functionality for making external API calls, creating what is known as the oracle problem. Overcoming the oracle problem in a manner that retains the security and reliability of the smart contract requires the addition of a secure piece of middleware known as a decentralized blockchain oracle. The decentralized oracle network automates the sourcing and delivery of external data from our API to blockchains in a secure, reliable, and properly formatted manner.
After reviewing numerous oracle solutions, we identified Chainlink as providing the most robust set of features to serve our specific needs as an API data provider, particularly:
- Data Integrity – Chainlink oracle nodes cryptographically sign the data they broadcast on the blockchain, giving us a way to definitely prove to users the origin of our data.
- Blockchain Agnostic – Chainlink oracles nodes can operate on any blockchain network, serving as a single gateway to sell our data on all blockchains both now and in the future.
- Security Focused – Chainlink is thoroughly audited open-source software built upon strong academic research and maintained by a large developer community, ensuring high levels of security and reliability.
- Broad Adoption – Chainlink is the most widely used oracle network in DeFi and secures billions of dollars in on-chain value, presenting us with a large consumer base to tap into that’s already utilizing Chainlink for data.
We look forward to running a trusted node on the Chainlink Network as a means of expanding the reach of our API data into the quickly emerging DeFi economy. Chainlink provides us with a single gateway from which to supply cryptographically secured data to developers across a variety of blockchain ecosystems, allowing developers to create more advanced and innovative DeFi applications.
“Running our own Chainlink Node allows us to easily and quickly monetize our existing datasets within this new blockchain-based DeFi economy, as well as future-proof ourselves to any changes that may occur within the industry,” stated Chris Randall, CEO and CTO of TraderMade. “We’re excited to see the wide range of applications possible through our high-quality financial data, particularly in aiding the development of next-generation Forex applications running on top of blockchains.”
About the Chainlink Network
Chainlink is the most widely used and secure way to power universal smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains and real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink introduces a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.
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Tradermade Systems Ltd. provides real-time market data and proprietary analytics software to some of the world's central banks, leading corporations, financial institutions and individual traders. Founded in 1984, TraderMade has a track record of more than 30 years of developing and supporting technical analysis solutions for the foreign exchange industry. For more information about TraderMade, visit https://marketdata.tradermade.com/.