Chainlink oracle on Ethereum – The Startup – Medium
E T H E R E U M
What’s upcoming in the Ethereum development
The launch of Chainlink on the Ethereum Mainnet was only a few weeks ago. Nevertheless, a lot has happened with the Oracle platform in this short period of time. Which decisive developments have the company experienced and what can users expect in the near future?
Chainlink creates new ways for Oracle networks
Smart Contracts are digital contracts that are highly reliable by being executed on a tamper-proof, deterministic and secure node in a blockchain. Their extreme reliability makes it possible to reach agreements about an entirely new level of added value and trustworthiness. The contracts are programmed to specific agreements and are executed as soon as the predefined event occurs.
However, Smart Contracts cannot independently collect the data they need. They rely on external data sources that are fed into the network. Oracle is needed to include external data in the blockchain. The problem is, however, that using Oracle leads to more centralization and requires a certain level of trust in the information source. For the blockchain, which relies on decentralization and a trust-free environment, this is a step in the opposite direction.
Another problem is the risk of the “Single Point of Failure” in Oracle networks. This danger exists whenever there is only one reference source for certain information or event fed into the blockchain. This is because the source could provide incorrect information, which would prevent the Smart Contract from working reliably and error-free. Chainlink wants to eliminate these problems.
Oracle Network in the Ethereum Mainnet
On 30 May 2019, the company announced the launch of the platform in the Ethereum network. Chainlink provides a decentralized computer system. It offers users a true distributed Oracle network with multiple external data sources. The network is operated by independent node operators who collect the external data and publish the results in a single smart contract input.
It is important to note that multiple data sources for the same information are included to prevent a single point of failure risks. Currently, the company is focusing on providing price feeds. These types of Oracle are particularly important because they are the most needed and depend on accurate, trusted, and timely information.
Before the Oracle network was integrated with Ethereum, it underwent a series of tests and checks. Several aspects such as resilience, scalability and security checks were successfully completed. These tests were critical for the company to act as a reliable partner and win the trust of future users.
More plans for Chainlink
Working with Ethereum was just the beginning of Chainlink. The company has ambitious plans for its Oracle network. It will be further expanded to become even more decentralized and reliable. To achieve this, the company wants to build a network of thousands of independent node operators. Since the nodes are of equal value and no single party is responsible for the data, end-to-end reliability is created, the company explains. They also plan to increase security by integrating additional features such as technical verification and signature verification.
Chainlink has also been very active in the area of new partnerships in recent days. Having worked successfully with BraveNewCoin, SWIFT, Polkadot, and the IC3 Group, the company announced two new partnerships a few days ago:
- Reserve: The stable coin provider wants to use Chainlink to make the price feeds on which the reserved protocol is based more secure and reliable. The protocol requires reliable pricing data to maintain the 1:1 peg to the US dollar. This is the only way to maintain true stability. Reliable data is also important to manage the portfolio of Fiat reserves sensibly.
- GoChain: GoChain is a highly scalable, cost-effective blockchain network protocol for dApps and Smart Contracts. The web3-based blockchain creates up to 1300 transactions per second. Companies like Microsoft or DISH Network build blockchain solutions on the GoChain. The company now wants to integrate the Oracle network from Chainlink to its blockchain.