Kylin Network, a platform developing a cross-chain data infrastructure and the Data Economy 3.0, announced the release of decentralized oracles as part of the first applications of its technology for providing the DeFi market with an accurate, reliable, and cost-effective source of external information.
The oracles developed by the Kylin Network can remove the risks of cryptocurrency price manipulations or inaccurate data by directly connecting to several reliable sources at once, verifying the information received and feeding to DeFi smart contracts on a real-time basis.
This, according to the project’s developers, will protect DeFi smart contracts, which are very dependent on financial data, against price and data manipulations, adding further security and integrity to the foundations of what some are calling the next financial revolution.
With Kylin’s solution powered by Polkadot, DeFi smart contracts can now read and analyze information from external sources and make accurate decisions based on the data received. For example, correcting prices, issuing loans, or suspending operations.
Kylin Network can be also used by lending services for collecting financial data from different sources like social media and calculating credit scores and loan rates. This, in turn, will enable the creation of a decentralized governance model and risk control mechanism to promote an equally beneficial relationship between borrowers, creditors, and guarantors.
“A smart contract is not smart unless you get the input right. Therefore, the right source data becomes the most critical infrastructure piece before DeFi can grow from an experiment to compete and eat the traditional finance world”, as stated by Kevin Hsu, the former data scientist in Credit Suisse and the Chief Advisor at Kylin.
Dylan Dewdney, the CEO, continues, “ultimately, our aim is to build Data Economy 3.0; a validated, decentralized data economy that will have far-reaching implications beyond DeFi, we hope. In contrast to data economies like Google or Facebook, there is no centrality, and through game theory and tokenomics we can compel good actors and info rather than the other way around. Powering DeFi is just the first step. We feel we have moved beyond the oracle to an entirely new business model that nonetheless will include oracle-type services”.
While the majority of existing oracles are centralized, and some popular oracles, such as ChainLink and MakerDAO, have noticeable attack surfaces, as they are tightly controlled by insiders, the Kylin Oracle’s fully decentralized solution can be a breakthrough in the decentralized data market.
A system integrating a data economy 3.0 of fully independent oracles makes it impossible to be used by insiders or manipulators and can, therefore, be a perfect data infrastructure for flourishing DeFi Dapps and apps.
The company also says that by building the network of oracles on Polkadot, it managed to make the cost of the use of validated data feeds the lowest in the market, which is essential for driving real usage.
Kylin is currently integrating partners within the Polkadot universe to help them build oracle features of their parachains and Dapps. The project plans to launch a full-scale DeFi data infrastructure next year, soon after completing a series of smart contract audits and security tests later this year. Over the two-year period, Kylin aims to create a mature data economy and marketplace where DeFi builders and users can easily and effectively coordinate and manage their data needs for a very competitive fee in addition to other use cases.
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