Chainlink (LINK) Acquires Privacy-Centric DeFi Oracle Solution DECO
Chainlink (LINK) has acquired a privacy-focused DeFi oracle solution DECO from Cornell University.
Chainlink Bets on DECO
The DeFi oracle landscape seems to be heating up as the latest development in the space sees Chainlink acquiring Cornell University’s privacy oracle solution DECO for an undisclosed amount.
Notably, this is Chainlink’s second acquisition to date.
For the uninitiated, DECO was co-created by Ari Juel, the former chief scientist at digital security firm RSA. Interestingly, Juel is also expected to join Chainlink Labs as per the deal.
Furthermore, as Coindesk reports, Chainlink CEO Sergey Nazarov and Juel have already started working on the second whitepaper for Chainlink. The two individuals previously wrote the first white paper in 2017 for Chainlink.
According to a release from the firm, DECO will leverage how HTTPS/TLS information is transmitted for more secure web practices. DECO’s website reads in part:
“DECO is also useful for users who want to monetize their own data (and therefore prove that they are indeed providing correct data) without giving away anything but the data that they are selling.”
Per sources close to the matter, Nazarov opined that DECO can be utilized as a foundation for a few crypto wish list items, including permissionless credit and decentralized identification.
For instance, DECO can be used to prove a person is over a certain age by fetching data from a DMV while hiding their birth date. This is similar to how South Korea’s ICON is planning to use its blockchain-powered decentralized identity solution in the country.
This use-case can be extended and applied to permissionless credit, Nazarov argues. He stated that an oracle like DECO could enable a smart contract to query off-chain credit information such as bank account details without invading the personal data.
Notably, Juel told Coindesk that DECO takes care of user privacy through the incorporation of zero-knowledge proofs that have typically been embraced by privacy-centric cryptocurrencies such as Zcash (ZEC).
DeFi Oracle Space Getting Competitive
The cryptocurrency market is riding the bull on the back of the burgeoning DeFi landscape. Within the wider DeFi space, DeFi oracle solutions such as Chainlink have witnessed exponential growth in terms of price.
However, Chainlink is not the only oracle solution enjoying the optimistic market sentiment.
As previously reported by BTCManager, DeFi oracles solution provider DIA had inked a partnership with scalable smart contract platform Elrond to enable the latter access secure off-chain and cross-chain data.