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Will Coinbase Sell Financial Data By Creating ChainLink Nodes?

Coinbase ChainLink Link

In a company
statement
, Coinbase Pro has announced that it is listing ChainLink’s LINK
on its platform. The exchange has said that it will accept inbound transfers of
LINK as a preparation for full trading services. Analysts, however, think there
is more coming to ChainLink after the listing at the exchange. Some speculate
that Coinbase is setting up a financial data asset market via ChainLink Nodes.

As per the statement, the exchange has set four transitions for order books before fully integrating LINK. The final development will involve full trading services, including stop, limit, and market orders. The Coinbase Pro LINK trades are available in every Coinbase Pro jurisdiction apart from New York State.

In a bid, to expand revenue, most
crypto exchanges are coming with novel ideas that work well alongside crypto
trading. Coinbase has, for instance, started “staking” services on the Tezos
network.

The monetization of assets on its platform is bringing in new revenue streams. ChainLink has serious prospects for Coinbase in that respect. Sam McIngvale, the Coinbase’s custody division head of product, has said “the industry has to evolve from just holding these things to doing interesting stuff with them.”

Coinbase Designing New Revenue Streams

The Ethereum based ChainLink is an oracle middleware project that connects data sources to smart contracts. An oracle is a trusted source of information, needed to make smart contracts smarter.

Some universally trusted oracles like the NYSE and NASDAQ provide price data for the financial industry. ChainLink seeks to integrate oracle data sources seamlessly into blockchains in a low cost and low-risk manner. The blockchain startup will help eliminate fraud, tampering, and bad data problems that have bogged down the mass adoption of smart contracts.

The startup has its roots back in 2014 when its co-founders Sergey Nazarov and Steve Ellis. Nazarov, the smart contract pioneer, has also built CryptaMail and Secure Asset Exchange. Following their wildly successful ICO in September 2017, raising $32 million, the startup now has a 12-member team and over 30 partnerships to book. These include SWIFT, ConsenSys projects and ZeppelinOS. It has recently caught the attention of Google Cloud, and the American software giant, Oracle.

The Coinbase–ChainLink Tie

Through ChainLink’s oracle solutions,
financial contracts, insurance payouts, machine-to-machine commerce, legal
documents, and other smart contract applications will become a reality. Without
its data linkage prowess, many smart contract projects will be dead in the
water. If Coinbase launches financial data instruments for the market, it will
need ChainLink.

In essence, Coinbase will give data
mongers such as Bloomberg a run for their money. Bloomberg nets $6.5
billion
each year from financial companies that need access to its 325,000
terminals of financial data. Bloomberg’s, nevertheless, is a centralized system
prone to single point failures. ChainLink’s oracles, on the other hand, will be
decentralized and tamper proof.

To ensure accuracy, ChainLink nodes will stake LINK as insurance. If a node is corrupted or sends incorrect information, it will lose its stake. This setup in Coinbase will ensure the integrity and reliability of information sold. A Burton-Taylor International report, for instance, says that in 2017, the financial market data market was worth $28.5bn. Additionally, old school desktop terminals like Reuters and Bloomberg lost their market share to smaller challengers offering the same services via software and cheap web browsers.

In 2018, the Bloomberg market share contracted to 33.2 from 33.4 percent in 2016. Reuter’s fell to 22.5 percent from 23.1 percent in 2016. Investment banks are getting less interested in costly desktop terminals in a bid to rein in expenditure. If Coinbase, therefore, sells ChainLink’s effective and affordable financial data oracles, the LINK token’s glory days are ahead.

The post Will Coinbase Sell Financial Data By Creating ChainLink Nodes? appeared first on Ethereum World News.

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Line To Launch “LINK” Cryptocurrency In Expansion Efforts

Although prices throughout the crypto bucket have (somewhat) kicked the bucket, there are still legacy market firms who seem intrigued and excited at the idea of blockchain-backed assets. One such company is Line, a Japan-based internet-centric firm that has become well-known for its messaging app.

As reported by Ethereum World News, the firm announced an in-house crypto-to-crypto exchange, which goes by the name BitBox. Since its release, the exchange has done well, offering its users with low fees, and support for a variety of cryptos via a minimalistic, yet easy-to-use platform.

In a surprising move, the internet giant has shown interest towards expanding its crypto offerings, recently issuing a press release that highlighted its planned “LINK” cryptocurrency. According to The Verge, Line intends to issue the LINK cryptocurrency not via an ICO, but rather, by giving away tokens to users when they use Line services, products or complete specific requests. It wasn’t specified how exactly the payment scheme would work, but one would assume that all users of Line products have a fair chance of receiving this newly-established cryptocurrency.

This may lead you to ask — “What will these tokens be used for?”

Well, Line intends to allow LINK token holders to purchase stickers, “webtoons,” and other services within the firm’s messaging application, in a move to evidently emulate a sort-of premium or loyalty program/service.

Image Courtesy of Line

Although this may be mundane in and of itself, the Japanese firm noted that also intends to offer LINK trading support in the aforementioned Line-owned BitBox crypto exchange. The token has also been likened to Binance Coin, as LINK can be used in the place of the 0.1% fee charged by BitBox’s trading engine.

The firm intends to distribute 800 million LINK tokens over time while keeping 200 million LINK for itself in reserve, which will cap LINK’s circulating volume at a maximum of one billion tokens. It is important to note that for now, that Japan, undoubtedly one of Line’s most important markets, will be unable to access BitBox or LINK, as the Japanese Financial Services Agency (and other regulatory bodies) have not given the go-ahead for these products just yet. As it stands, users in Japan will get virtual points, which can be traded for the firm’s cryptocurrency in the future.

If this LINK venture succeeds, Line intends to eventually use the blockchain behind the LINK token to host decentralized applications (DApps) that will directly connect with the firm’s messaging app.

Speaking with CNET, Youngsu Ko, CEO of Line’s ‘Tech Plus’ subsidiary, explained the social media giant’s aspirations in the cryptosphere, writing:

“The accelerated development of the crypto economy and blockchain technologies has created a wide range of options for new types of businesses. To keep up with these trends, Line has decided to launch our own cryptocurrency and blockchain network. Line intends to be a pioneer in the blockchain/crypto field, using our status as a global mobile platform and a listed company to take the initiative with the first cryptocurrency.”

Photo by Luca Bravo on Unsplash
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