After a malfunction is responsible for a drop in the price of many securities listed on
After an issue was responsible for the price of several NYSE-listed securities falling by as much as 99.9%, Chainlink (LINK) co-founder and CEO Sergey Nazarov weighed in and reminded the audience that traditional financial systems are vulnerable to critical fluctuations. The weaknesses result from its very centralized structure.
In a statement to Cointelegraph, Nazarov explained how Chainlink’s Oracle Network could provide a solution to the vulnerabilities inherent in centralized systems:
“Decentralized oracle networks, invented by Chainlink, can mitigate these risks by providing accurate and tamper-proof data. These networks aggregate data from various sources and use consensus mechanisms to verify the validity of information, ensure data integrity, and prevent false transactions and price manipulation. “
The Chainlink co-founder continued: “The integration of blockchain technology will enable real-time verification and automated responses to anomalies, significantly improving the reliability and transparency of today’s financial markets. »
about: Celo integrates Chainlink’s CCIP interoperability protocol.
The Origin and Purpose of Oracle Networks
Oracle networks such as Chainlink were invented to solve the problem of real price data for smart contracts.
Contrary to their name, smart contracts aren’t very smart: they require real and digital price feeds to settle everything from futures to flash loans; Without this valuable data, contracts are little more than lines of code and have little use in the world of business or finance.
Oracle networks provide smart contracts with the real-world data they need to function as financial instruments and commercial contracts. It uses a decentralized network of nodes to process and validate data, ensuring that data does not come from a single source and avoiding the single points of failure inherent in centralized information systems.
Update on the New York Stock Exchange bug
On June 3, the prices of several large-cap stocks, such as Berkshire Hathaway, McDonald’s and Wells Fargo, fell by as much as 99.9% due to what was widely suspected to be a software glitch in the infrastructure of the New York Stock Exchange.
Trading in the affected securities was halted due to extreme price fluctuations caused by the breach, but later resumed for Berkshire Hathaway and the other affected securities. The issue has since been resolved.
review: Lazarus Group’s Favorite Exploit Detected – Cryptocurrency Hack Analysis.
