Chainlink develops off-chain decentralized oracles

7

Get real time updates directly on you device, subscribe now.

Chainlink developers are creating new off-chain decentralized oracles that can provide solutions to both the scalability of the supported networks and other problems.

According to the project’s White Paper, Chainlink 2.0 aims to create “decentralized oracle networks” (DON). These second-tier networks operate off-chain – almost all of the data associated with the smart contract is stored and calculated outside the blockchain before the oracle transfers the data to the network to initiate the execution of the smart contract.

For example, there is a smart contract that manages transactions between ETH and UNI. The Chainlink 2.0 oracles will aggregate all price data for this pair and only report the exact price to the on-chain smart contract when needed.

For more complex smart contracts that require more data, such as options or secured tokens, off-chain oracles can potentially reduce the risk of miners trading on-chain. Chainlink co-founder Sergey Nazarov compared DON to an API.

“Our work with leading DeFi protocols has made it clear to us that in order to create the next generation of smart contracts, developers need an easily accessible, provably secure and scalable set of decentralized services for their smart contract codes with key add-on features,” he said.

Recall that earlier this year, Chainlink developers launched an off-net data aggregator – the largest update since launch, which will increase network speed up to ten times.

Many industry projects use Chainlink decentralized oracles. In March, Filecoin storage project developers integrated the Chainlink network of decentralized oracles to link to Ethereum and other smart contract-enabled blockchains.

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.