BofA says in its latest report that Oracle networks will play a crucial role in verifying assets. In this context, he points to Chainlink as a key player. In the midst of these developments, their whale is carrying the altcoin project tokens to Binance.
BofA drew attention to oracle networks and pointed to this altcoin project
Blockchain technology is gaining more and more acceptance. In addition, the demand for decentralized oracle services is increasing. As a result, Chainlink’s oracle services are in demand as they facilitate fast and fast transfer of funds and data between different Blockchain platforms.
In its latest report, Bank of America (BofA) talks about the future of asset tokenization and how Chainlink (LINK) can play an important role in powering on-chain finance. BofA adds that Oracle networks are essential for technologies such as new types of digital platforms and the tokenization of traditional assets. Like blockchains and dApps, these platforms rely on Oracle networks to access real-world information.
This data may include market prices, time, weather, location, property records, election results and creditworthiness. Connecting a blockchain to real-world data may seem simple. But ensuring data is decentralized and secure is a complex task. The banking giant notes in its report:
We expect the issuance of traditional assets in tokenized form to become the norm. But traditional assets and markets will not disappear overnight. Also, some assets, such as gold and real estate, are physical. Before purchasing a token representing ownership of an asset, investors are likely to verify through oracle networks that that asset exists and is held by a custodian. Without the ability to verify the existence of a commodity, in our view tokenizing pre-existing traditional assets will likely face adoption barriers.
Whale activity on LINKCelsius?
Amid these developments, whale watching platform Whale Alert detected a movement on LINK. Accordingly, an anonymous whale first transferred 1.6 million LINK, worth about $10 million, to FalconX. After this transaction, the whale moved the tokens to the giant cryptocurrency exchange Binance.
The owner of the wallet in question is anonymous and it is not clear who it belongs to. However, nowadays it is on the agenda of the market that the bankrupt crypto loan platform Celsius will convert its altcoins into BTC and ETH. Celsius also has a large amount of LINK tokens. So, according to experts, these transfers are likely to belong to Celsius.
Use of oracle networks for banking, CBDCs and the private sector
Earlier this year, Chainlink co-founder Sergey Nazarov said that they recognized the importance of having a common link layer between different Blockchains to make it easier for banks to adopt on-chain finance. This layer will serve as a crucial foundation for seamless access to multiple Blockchains.
On the other hand, cryptocoin.comAs you follow, some of the leading economies have made significant progress in their efforts to introduce central bank digital currencies (CBDCs). These smart contract-enabled CBDCs will be useful for making programmable payments on predefined terms.
The innovation lies in using smart contracts on distributed ledgers to facilitate these programmable payments. Rather than relying on APIs in existing granular systems, smart contracts on a distributed ledger offer a wider range of programmable payment options. With smart contracts, it is possible to carry out transactions of tokenized assets without the need for trust. There are also possibilities to cover a wider range of conditions using Oracle networks. This is not possible with the limited and unconnected legacy systems in use today.
Also, decentralized oracle networks like Chainlink help private sector players monetize their data in the form of data streams. AccuWeather and the Associated Press, for example, make money by providing their data to Chainlink’s decentralized oracle network. AccuWeather’s weather data is used in decentralized parametric insurance products that farmers can purchase to protect themselves from the impact of severe weather.
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