Bzx – Chainlink Is The Answer To Price Manipulation of Bitcoin

  • bZx, an ethereum based trading platform, is now going an ostensibly decentralized oracle feed known as Chainlink.
  • The haxor in one transaction sold WBTC on Uniswap by shortening the tokenized bitcoin on bZx.
  • Bitfinex isn’t at all smart contracts which means that the Flashloans do not work there.

bZx, an ethereum based trading platform, is now going an ostensibly decentralized oracle feed known as Chainlink.

“We had been chatting with the team yesterday. Tom and Kyle (founders) met Sergey several times before. We will integrate ChainLink,” a representative from bZx said.

After a highly skilled coder managed to create $360,000 worth of Ethereum utilizing the old method of half long and half short while using Flashcoin. The haxor in one transaction sold WBTC on Uniswap by shortening the tokenized bitcoin on bZx.

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Even though bZx doesn’t use Uniswap and use Kyber instead. But the Kyber does use Uniswap, because of which a change in Uniswap led to a change in Kyber and ultimately translated into a variation on bZx. In this case, it made the short profitable by making the price go down.

Using many price feeds can be a very easy and practical solution to that. No matter how numerous the price feeds might be, there are still ways to manipulate the market possible, but it is definitely made it more difficult and almost close to impossible to be done in the way it had been done before.

That happens because Bitfinex isn’t at all smart contracts which means that the Flashloans do not work there.

However, if one and only one price feed is used, then it is way too easy to manipulate the price feeds, it can be said that it is a child’s play to do so.

They go one step further in the traditional markets with a one-hour window setting that allows the price in addition to using various price feeds from different exchanges.

Even after all that, space is relatively a lot newer, and a lot more has to be discovered, and a very costly lesson has to be learned.

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Steve Anderrsonhttp://www.thecoinrepublic.com
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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