Ergo Launches Oracle Solution for Cardano (ADA) to Foster Interoperability
Ergo (ERG) has announced the launch of an oracle solution for the Cardano (ADA) ecosystem. The firm claims its oracle pools present a new approach to oracles and make the creation of new types of dApps possible, according to a blog post on November 9, 2020.
Ergo Deepens Partnership with Emurgo
Last June, Emurgo, one of the firms in charge of the Cardano (ADA) blockchain, inked a strategic partnership deal with the Ergo Platform, in a bid to develop highly functional decentralized finance (DeFi) focused solutions.
Now, it appears the alliance has started to yield the desired results for both parties as Ergo, a platform developed by former IOHK engineers, has unveiled an oracle solution for the Cardano blockchain.
As stated in its blog post, the new oracle solution for Cardano is powered by Ergo’s extended UTXO model and will post data right from its (Ergo’s) oracle pools to the Cardano distributed ledger via what it calls tx metadata.
For the uninitiated, oracles are simply third-party services designed to relay information from the outside world to smart contracts. Ergo claims its oracles is already being used by one of Cardano’s stake pool operators, as it has numerous benefits over other models and they also allow for the creation of new types of decentralized applications (dApps).
“One of Cardano’s oracles is utilizing data provided by Ergo’s oracle pools. Marek, a Cardano Stake Pool operator, has built a simple solution for Cardano. Information from the Ergo oracle is sent to the Cardano network through tx metadata.”
What’s more, Ergo says its NUTS oracle currently serves six data streams, providing price information in real-time for ERG/USD: Coingecko, ADA/USD, ADA/EUR and the price of TSLA shares.
Ergo says the new oracles will lay a solid foundation for interoperability between Cardano and the Ergo blockchain, as both platforms now share the same source of data about the same digital assets.
Going forward, the team says it plans to extend the current functionality of its oracles and possibly create complex DeFi solutions such as Ergo-Cardano atomic swaps, with cross-chain liquidity pools and pricing decided by mutually-agreed oracle data.
Cardano remains one of the most active blockchain projects currently in existence. As reported by BTCManager on October 8, 2020, the Cardano Foundation released details of its delegation methodology for interested stake pools operators.