The announcement from MDEX states that the platform is signing a deal with the oracle platform running on the Ethereum blockchain. The deal is expected to fasten the security on the platform while accessing the price feeds of different currencies. This is seen not just as a step towards fortifying security but also to get access to accurate data from platforms around the world.
Chainlink would be the middleman between the different platforms and MDEX. Dealing with third-party data may affect the security outlook of the exchange platform. So, MDEX will receive the aggregate tamper-proof data blocks collected from other platforms. This deal with Chainlink will help MDEX to list accurate price feeds in a secure way without having to put separate effort into it.
Chainlink was chosen to be the price feed provider mainly due to its tamper-proof operations. Moreover, the Oracle solution has a reputation for its compatibility with multiple platforms while not hindering the usual operations of the platforms. Chainlink is already an integral part of the security of several DeFi platforms and oversees billions of dollars worth of smart contract transactions. So, it seems perfectly normal for MDEX to prefer Chainlink over other oracle solutions out there.
The following are the reasons given by MDEX for choosing Chainlink among other oracle solutions.
- The price feeds from Chainlink are collected from hundreds of premium data aggregators. These data are weighed and precisely calculated before sending it to exchange platforms.
- The Chainlink Oracle only uses verified operators and has a flawless record on the reliability meter.
- The decentralized network of Chainlink safeguards it from any external attacks or tampering.
- An effective reputation system with on-chain monitoring tools helps the users to verify nodes and operators easily in real and historical time.
Initially, the platform intends to bring 16 price feeds for HECO and 14 price feeds for the Binance Smart Chain from Chainlink. This is a step towards MDEX’s plan of providing a one-stop platform that offers a secure, reliable, and cost-efficient environment. However, the benefits are not limited to only these few generic aspects. The combined resources of these two platforms are expected to enhance mining, purchases, and repurchases on MDEX as well.
LINK is the native token of the Chainlink Oracle. The LINK token was created to reward the independent operators of the nodes on the ecosystem. The rewards on the chain would be given as LINK coins for extracting the data from external platforms and creating readable price feeds for the blockchains. The value of LINK currently stays at around 22 dollars. However, the price may go up as high as $50 by the end of 2026 as per the LINK price prediction from CryptoNewsZ.com.