Leading decentralized oracle provider Chainlink announced the creation of a new Filecoin (FIL) price feed on January 10. Already used by derivatives liquidity protocol Synthetix, the price feed helps DeFi developers gain access to accurate and stable prices which they can use to create decentralized applications. As we can see, Chainlink resumes in maintaining its dominance as the number one oracle protocol in the blockchain industry.
Chainlink’s newest price feed provides regular, trusted, and decentralized information on the price of the FIL/USD token pair. The oracle network comprises nine individual nodes that aggregate the pair’s price data.
These nodes include Figment Networks, Infinity Stones, Newroad, Omniscience, P2P.org, Anyblock, Ztake, SyncNode, and Simply VC.
By utilizing the FIL/USD price feed, developers can create decentralized applications and use cases based on the Filecoin protocol. While the project may be notorious for its volatile market movement, Filecoin still represents a notable player in the area of decentralized data storage.
As a reminder, Filecoin finally launched in October 2020 after two years of development. It represents one of the most famous projects in the 2017 era, raising $257 million during an ICO on September 7, 2017.
What is Filecoin?
Filecoin represents a decentralized data storage network designed to safeguard and store information. As a peer-to-peer network that stores files, Filecoin offers various built-in economic incentives that ensure the reliability and safety of data.
The protocol features a vibrant ecosystem in which users and miners coexist. While users pay to store files, storage miners are individuals who earn money for hosting the data of other users.
The goal of a storage miner is not only to host and store files but to verify their integrity as well. Anyone interested in participating in such an ecosystem can join Filecoin, given that they have the hardware necessary to support file hosting.
Blockchain enthusiasts deem Filecoin to be a revolutionary protocol as it provides an open market for data storage. The price of data storage is not controlled, managed, or influenced by any company. As a matter of fact, the users and miners on Filecoin set the price themselves.
Why do projects like Filecoin pick Chainlink?
Chainlink is a decentralized oracle platform that provides consistently accurate, stable, and decentralized data. One of the protocol’s main services and products includes price feeds. In essence, price feeds help developers create decentralized applications and protocols for various digital assets.
By introducing new price feeds, Chainlink helps developers create new tools and products for users.
For example, developers can now create all sorts of decentralized financial instruments based on FIL, Filecoin’s main cryptocurrency. These instruments include loans, derivatives products, betting services, and many other products.
As Defiye previously reported, Chainlink has made yet another partnership this month by launching an oracle node for Finage. Finage is a real-time stock, forex, and cryptocurrency data provider that seeks to provide its data to the DeFi market.
When discussing why they have chosen Chainlink, Finage explained that it is the only time-tested and agnostic oracle protocol with a large addressable market.
By leveraging the technology and capabilities of Chainlink, Finage seeks to improve its revenue and help developers as well. With this intention, the data provider can fuel DeFi with even more high-quality data.