New Coinbase Oracle to boost DeFi expansion plans

A new Coinbase Oracle has been launched to expand the exchange’s operations in the DeFi realm. The newly launched technology allows an on-chain price data publication for real-time quotes. Users can achieve price verification as soon as the Coinbase Pro platform supplies the price data.

Similar on-chain competitors operating in the Decentralized Finance sector, including tBTC and Uniswap V2, are constructing similar solutions to bring the decentralization aspect to their price feeds. The new Coinbase Oracle will not only boost price authenticity but also help increase the resiliency in the transactions.

Coinbase Oracle adds transparency in the DeFi sector

Technically, decentralized networks use oracles source price data. Currently, price oracles form an integral part of the services, including derivatives, lending, and margin trading, etc. Kyber and Uniswap are the most popular price oracles today.

In recent years, this oracle mechanism has faced considerable criticism due to the underlying centralized maintenance. Moreover, there is no system in place to verify data on smart contracts end. The hacking attacks suffered by famous lending platform bZx were also due to the Kyber platform’s vulnerabilities.

Coinbase Oracle adds credibility factor to DeFi

The new Coinbase Oracle gives everyone the power to post price data on-chain, which is subsequently updated every minute. When the source of price data is an off-chain resource, there are doubts about data signing and safety. Achieving this feat has not been easy as there are way too many entities involved in the process. Matters can escalate quickly when the stakes are high.

Coinbase Oracle ensures the credibility factor remains high. The Coinbase’s private key signs the data before making it available to the public in general. Additionally, the public key further verifies the information since it shares the key security infrastructure with the Coinbase exchange.

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