Chainlink Is Developing a More General-Purpose Oracle Solution Tailored to UTXO-Based DeFi Applications

Anna Martynova

A potential collaboration between Cardano (ADA) and Chainlink (LINK) is in the works. Both blockchain projects are exploring how they can enhance the development of decentralized finance (DeFi) based on the UTXO model. Charles Hoskinson, the creator of Cardano, discussed these developments in a recent interview on David Gokhshtein’s podcast.

According to Hoskinson, the Cardano and Chainlink teams are in talks to build a DeFi oracle solution beyond a single blockchain. The project aims to connect a wider range of UTXO-based networks such as Bitcoin, Litecoin, and Dogecoin. The goal of this partnership is to create an oracle system that is general-purpose across different blockchain networks, rather than being limited to a single ecosystem.

As the world of decentralized finance expands, so too does the need for reliable oracles: those systems that provide external data to smart contracts. Chainlink, which is already a prominent figure in the oracle world, is looking to gain traction in UTXO-based networks. As Hoskinson explained, Chainlink wants to establish a foothold in the space and attract users from these ecosystems.

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