The decentralized finance boom is now in its fourth month, and one of the biggest beneficiaries of this DeFi fever has been Ethereum. And it is that most of the DeFi projects in the world are developed on the Blockchain of the cryptocurrency. What has driven the demand for ETH and therefore its price. However, this domain has not been without its challengers. And the Blockchain of one of them, Polkadot, will have a new data provider oracle.
Competition for DeFi
Despite its near-absolute dominance over decentralized finance, Ethereum cannot rest easy. And it is that, together with the increase in its demand, and therefore in the transactions in its blockchain. The cryptocurrency has also suffered an increase in the commissions that its users must pay per transaction, due to the congestion of the Blockchain.
This has led to absurd commissions of several tens of dollars per transaction. Allowing record-breaking ETH miners’ earnings from commissions. While DeFi projects and exchanges report losses, when executing transactions whose commissions are higher than the profits they would obtain for them.
For this reason, alternative Blockchains have stepped up to replace Ethereum. And although so far DeFi protocols do not seem inclined to leave the ETH blockchain. Rivals like Tron are getting more and more attention from crypto users. Polkadot being the one that has caused the greatest stir due to the increase in the price of its cryptocurrency, DOT, since its launch.
Polkadot’s Blockchain and its new oracle
Thus, less than a month after its birth, the Blockchain created by Ethereum co-founder Gavin Wood went from an initial price of $ 2.95 per DOT to a peak of 6.32, before stabilizing at the $ 5.02 where it is currently. Attracting the attention of investors who see potential in Polkadot to be a replacement for Ethereum.
And it is that, Polkadot would be working for this objective. Announcing today that it will have a new oracle, Bluzelle, to provide data to the DeFi projects that are created within the chain. With which it is expected that the protocols designed in Polkadot can obtain reliable and real-time information about the crypto market prices. Performing a job similar to Chainlink with DeFi projects on Ethereum.
Polkadot would have decided on Bluzelle due to the confidence provided by the historical and current data provided by the oracle. And that they will be able to feed verifiable information to the smart contracts created in the chain. In addition to the fact that being built on the Cosmos Blockchain, with a speed of 10,000 transactions per second, Bluzelle would open the doors to greater scalability in Polkadot compared to ETH.
With this move, Polkadot would be creating the basic infrastructure for his project with a view to competing directly with Ethereum. In an effort that, if successful, could allow Polkadot to replace even other more established cryptocurrencies like Tron in the field of DeFi.