Chainlink’s latest upgrade ‘A Rapid Evolution’ for DeFi: CEO Sergey Nazarov

In the letter

  • Chainlink Labs introduces off-chain reporting, an upgrade in scalability to make more data available in the chain.
  • CEO Sergey Nazarov said the upgrade will benefit the DeFi sector and allow Chainlink to expand beyond price feeds.

According to “decentralized financing is facing a” rapid development ” Chain link Founder Sergey Nazarov. An important new upgrade introduced by the decentralized offices today oracle Provider, brings 10 times more data into the chain to increase DeFi Products and services, he said Decrypt.

The new upgrade, synchronized Off-chain reporting (OCR)is the largest network since its mainnet launched in May 2019. It will open up Chainlink to applications beyond the price feeds it became famous for and “a whole host of other uses,” according to Nazarov.

Chainlink securely connects blockchains with real data and has earned an enviable reputation for doing so. It is the dominant decentralized oracle provider within etherThe DeFi ecosystem and over 300 projects have now integrated oracle technology.

The startup was named one of the 100 Most Promising Technology Pioneers of 2020 from the World Economic Forum. Meanwhile, his LINK token, which hit new highs this month, was one of Top performing crypto assets of 2020.

A scalability solution that aggregates data out of the chain

The upgrade was a year in development and reworks the way Chainlink Oracle is radically changed node Pull data. Where previously data had to be brought up the chain and then aggregated – a process that incurred prohibitive fees (known as Gas on Ethereum) – data aggregation is now completely out of the chain.

Oracle networks aggregate data out of chain and send a single transaction. Image: Chainlink Labs

This reduces the operating costs of the nodes by up to 90%, as the operators no longer have to pay for multiple transactions in order to bring data into the chain for aggregation. It also dramatically increases the amount of data the nodes can process, enriching the entire DeFi ecosystem.

“We have seen in the past that as data is chained, more DeFi protocols go live and existing DeFi protocols that we are using have more markets to go live, making the whole category more useful to users,” said Nazarov.

Decentralized insurance and blockchain-based games are just a few of the emerging sectors smart contract Developers will wait in the coming months as newly available datasets emerge for a wider range of financial products and markets, he added.

OCR was developed by Chainlink’s chief scientist Ari Juels. Head of Research and Development, Lorenz Breidenbach; Ben Chan, formerly from BitGo, and a new face, Christian Cachinwho previously headed IBM research. Trust is minimized, which means that participants’ vulnerability to one another and the potential of outsiders for harmful behavior is reduced. It also has additional benefits such as: B. increased decentralization.

Beyond price data

So far, Chainlink has mainly focused on rapidly increasing the amount of data it provides in the chain via its price feeds – and continuously expanding it.

However, there are already other services that Chainlink offers that benefit from OCR, such as: “Proof of reserve” A mechanism that enables oracles to update and provide on-demand data on reserve funds, such as those held by Stable coins. These can then be used by other DeFi applications on Ethereum, and Proof of Reserve is already in use by the tUSD Stablecoin and Crypto Custodian BitGo.

Chainlink uses graphicsChainlink’s data feeds and calculation services have many uses. Image: Chainlink Labs

Other services that Chainlink provides through OCR include weather data for insurance purposes; Low-confidence computation for applications such as “verifiable randomness” for games; “Fair Sequencing” to Combat Front Running and Keepers, a Chainlink application that manages smart contracts.

These will only grow, said Nazarov. However, developers also get access to a multitude of resources: data on real-life events from marketplaces like the AP news agency and Google’s big question;; Data from other blockchains, such as Tezos and Speckle– as well as data from common financial applications. This will give them the infrastructure they need to serve new industries and exciting use cases, Nazarov said.

“People think of the Chainlink network as pricing data, but that’s because we’re so focused right now on making this possible,” he said. First of all, the goal is for OCR to increase the volume of data that the oracle provider puts on the chain, leading to more DeFi use cases. As a result, explained Nazarov, the Chainlink network will expand “to more and more data and more and more services”.

The upgrade promises smart contract development – a sector Nazarov has focused on for 12 years (he registered the domain on October 25, 2008, six days before the Bitcoin whitepaper was published).

For Nazarov, the most exciting thing is that Chainlink is an essential infrastructure for maintaining smart contracts. “The faster we can enable people to build,” he said, “the faster our industry can get there.”

Comments are closed.