Bluzelle is turning its attention to the decentralized finance (DeFi) space with the creation of an oracle that aims to offer security and reliable price discovery solutions for DeFi protocols. The move is the latest effort by the project to leverage its technology across several facets of the crypto space.
DeFi continues to be a major topic of interest within the cryptocurrency industry in 2020 following the flurry of developments seen of recent in the market sector. Such is the extent of the massive DeFi growth that Ethereum (ETH) fees have climbed to their all-time highest level.
Bluzelle Targets Robust DeFi Security with New Oracle Service
In a press statement issued last week, Bluzelle revealed a new oracle product targeted at the DeFi market space. According to the press statement, the oracle will provide robust security and accurate price-feeds for DeFi protocols involved in operations like staking, payments, and lending among others.
As part of the technical details released in the announcement, the Bluzelle Oracle will utilize the company’s proprietary BluzelleDB database infrastructure. Thus, the oracle product will have access to numerous validator nodes required for optimal interfacing with DeFi protocols.
DeFi projects require oracles to serve as a bridge relaying data such as price feed between on-chain and off-chain sources. According to Bluzelle, its oracle solution is able to communicate with decentralized databases thus ensuring greater fidelity of the data transfer chain.
An excerpt from the press statement reads:
Within its DeFi functionality, Bluzelle’s oracle solution enables historical prices to be stored and referenced, with three principal benefits introduced: access to trustworthy price feeds validated by hundreds of nodes; the ability to run statistical analysis to safeguard against attacks, enabled by access to a history of data points; and fast retrieval of prices, since they are pre-stored on BluzelleDB.
Commenting on the release of the DeFi oracle, Neeraj Murarka, the Bluzelle CEO remarked that the increasing volume of activity in the decentralized finance space offers an incentive for bad actors. Thus, solutions like the Bluzelle Oracle are necessary to safeguard the still-nascent DeFi space.
The Bluzelle Oracle announcement is the latest offering by the company as it continues to expand its presence in the crypto space. As previously reported by Blockonomi, Bluzelle and blockchain payment platform Elrond recently partnered to run Elrond dApps on Bluzelle’s tamper-proof scalability service.
Decentralized Finance Continues to Gain Ground
As of the time of writing, data from DeFi analytics platform Defipulse.com shows the total value locked (TVL) in the market to be approaching the $10 billion mark. This figure becomes even more profound against the backdrop of the fact that the TVL only crossed the $1 billion milestone back in February.
Indeed, several commentators were already tipping the DeFi space to become a more prominent aspect of the crypto industry in 2020 along with central bank digital currencies (CBDCs). Since the middle of the year, liquidity mining has become the new focal point for crypto yield chasers.
Amid the current yield farming hype, industry insiders like Ethereum co-founder Vitalik Buterin have urged caution. Indeed, the bullish optimism around the new breed of DeFi projects has given rise to scam tokens flooding marketplaces like Uniswap.