Ripple, one of the leading companies in the field of blockchain technologies, has announced a collaboration with Chainlink to improve the accuracy and reliability of price data for its RLUSD stablecoin. If you're interested in cryptocurrencies, here's what it means and why it's important.
What is RLUSD?
RLUSD is a stablecoin, that is, a digital currency that is pegged to the US dollar. This makes RLUSD relatively stable compared to other cryptocurrencies such as Bitcoin or Ethereum, whose value can fluctuate greatly.
This stablecoin is designed for:
Instant payments with low fees.
Works in decentralized financial applications (DeFi), such as lending or trading.
Ripple Uses two Blockchains for RLUSD:
XRP Ledger is a fast and reliable Ripple blockchain.
Ethereum is one of the most popular platforms for DeFi.
DeFi and the importance of stable data
DeFi (Decentralized Finance) is a set of blockchain—based applications that allow people to manage finances without intermediaries such as banks.
For example, using DeFi, you can:
Take out loans.
To lend money at an interest rate.
Engage in asset trading.
Such operations require accurate data on the value of assets. If the RLUSD price is incorrect, this can lead to problems, for example:
Excessive risks for borrowers or lenders.
Losses due to incorrect terms of transactions.
That's why Ripple decided to integrate Chainlink.
What does Chainlink do?
Chainlink is an oracle network that helps the blockchain get data from the real world.
Oracles perform three key tasks:
They collect data: For example, the price of RLUSD from several exchanges.
Data is checked: Data from different sources is compared to exclude errors.
Data is transferred to the blockchain: After verification, the data becomes available for use by smart contracts.
Advantages of Chainlink:
Decentralization: Data comes from a variety of independent sources, which reduces the risk of manipulation.
Security: Information is protected from hacking.
Accuracy: Proven algorithms are used that minimize errors.
How will this collaboration improve RLUSD?
By integrating with Chainlink, Ripple can ensure that the RLUSD price always reflects real market conditions. This:
Improves the credibility of RLUSD as a tool for DeFi.
Improves the reliability of credit and trading operations.
Reduces the risk of price manipulation.
Ripple and the future of DeFi
Ripple continues to strengthen its role in the cryptocurrency industry. Amid growing optimism, an XRP exchange-traded fund (ETF) is expected to be approved by the U.S. Securities and Exchange Commission in 2025. This event can attract new investors and make Ripple even more popular.
Why is this important to you?
If you want to use cryptocurrencies or engage in DeFi, the collaboration between Ripple and Chainlink makes such operations safer and more transparent. This is a step towards making decentralized finance easier and more accessible for everyone.
Ripple and Chainlink are working together to make the digital economy more reliable, and this is just the beginning of their collaboration.
