Share this article
Chainlink Is Building an Off-Chain Oracle Network
Chainlink 2.0 will create a second layer network that will allow oracles to take the bulk of their work off-chain.
Updated Sep 14, 2021, 12:41 p.m. Published Apr 15, 2021, 2:28 p.m.
Make us preferred on Google
Ethereum and multi-chain oracle service Chainlink is building out a new oracle network that could provide a solution (in part) to both scalability and front-running issues.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Dubbed Chainlink 2.0, the network creates what its team calls “decentralized oracle networks” (DONs). These second-layer networks operate off-chain, meaning almost all of the data related to the smart contract is stored and computed off-chain before an oracle makes an input on the blockchain to trigger a smart contract’s outcome.
For example, if you had a smart contract that managed trades between ETH and UNI, Chainlink 2.0’s oracles would aggregate all the various exchange data for this pair and only feed the on-chain smart contract the exact price when needed.
Taking this further, for more complex smart contracts that require more data (like ones for options or collateralized tokens), something like off-chain oracle services could potentially mitigate miners front-running trades on-chain.
Chainlink co-founder Sergey Nazarov likened these DONs to the application programming interfaces (APIs) that developers use for everyday computer functions (whenever you Google something and Google’s own result comes up, for weather or bitcoin price, for example, this data is pulled using an API.)
"Our work with the top DeFi protocols has clearly shown 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 surrounding their smart contract code with key additional functionality," Nazarov told CoinDesk.
In the Bitcoin ecosystem, so-called discreet log contracts (DLCs) require similar off-chain oracle services.
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
Bitcoin climbs above $89,000 as U.S. dollar tumbles on President Trump's remarks
The president said he isn't concerned about the dollar's recent declines, sending the greenback plunging even lower.
What to know:
- Bitcoin rallied above $89,000 as remarks by President Trump sent the dollar to its lowest level in nearly four years.
- Gold rose to a new record above $5,200 per ounce following the president's comments.
- One analyst is seeing a bullish technical divergence which could send bitcoin back to $95,000 in short order.
Top Stories
