strong growth in the decentralized finance sector has resulted in the achievement of Protocol Band (Band) and Chain Link (Link) gaining more than 100% in the past few weeks.

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According to Coin Telegraph, the price of Bitcoin (BTC) this week created some waves with the digital asset finally rising above the $ 12,000 mark, but before the move, the currencies were The Alternative is outperforming Bitcoin strongly for weeks.

and two of the most prominent currencies were the Protocol Bands (Band) and the Chain Link (Link), both of which rose by 348% and 88% in the past ten days. Each operates as an Oracle Blockchain network providing data for DeFi applications.

since the beginning of this August, the price of the (Band) has increased from $ 3.9 to $ 17.78, and in the same period, (Link) has risen from $ 7.6 to $ 14.45 in It climaxes on August 10, 2020.

What is behind the rise in the decentralized financing tokens?

The main factor behind the strong rise is the phenomenal growth of the decentralized finance sector, as decentralized financing applications allow users to undertake various financial activities such as trading, loans and earning interest from lending in digital currencies.

for decentralized finance platforms to function smoothly, they need to fetch market data from various websites and blockchain networks and this is where the Oracle rules are used.

Oracle's rules are required within smart contracts to obtain the data necessary to operate the decentralized financing platforms. Thus, when the decentralized finance sector expands, the blockchain networks that provide those bases benefit from it.

and a research paper on Who Want Block explains: Oracle rules allow for off-chain data to be combined with smart node parameters found in public blockchain chains.

As data from Divi Pulse shows, since June 1, the total value of booked in decentralized financing applications has increased from $ 1.048 billion to $ 4.76 billion. As more capital enters the decentralized finance market, so does the demand for Oracle Rules too.

and the main difference between (Protocol Band) and (ChainLink) is that the former is based on Cosmos, while the latter operates on the Ethereum network. Cosmos is a PoS blockchain, while Ethereum is in the process of moving to Proof of Stake (PoS) (2.0).

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