Chainlink: Beyond Price Feeds and Data Delivery

  • Price Feeds — Chainlink’s pre-built decentralized price feeds provide DeFi applications a real-time stream of financial market data, including exchange rates for cryptocurrencies, stablecoins, commodities, indices, stocks, fiat currencies, and other key financial datasets.
  • Any Web API — Chainlink oracles are able to connect smart contracts to any open or authenticated API, opening up access to IoT data, bank payments, web APIs, enterprise systems, other blockchains, and virtually any off-chain resource used to create smart contract markets in insurance, supply chain, digital marketing, and various other new industries.
  • Verifiable RNG — Chainlink VRF (Verifiable Randomness Function) generates a secure source of on-chain randomness that users can independently verify as fair, unbiased, and tamperproof, leading to gaming applications, NFTs, blockchain lotteries, layer-2 protocols, and more that can reliably secure large amounts of value with RNG inputs.
  • Off-chain Computation — Chainlink oracles can perform more advanced off-chain computations, leading to an expansion in oracle services such as scalable Solidity computation, blockchain transaction privacy, oracle data privacy/integrity, transaction order fairness, and more.
  • Blockchain Abstraction Layer — Chainlink’s continued integration across all the leading blockchains that exist now and in the future, provides enterprises, governments, and data providers with a single integration gateway to connect applications and sell data to every blockchain network, reducing development costs and preventing vendor lock-in.

A Framework for Building Heterogeneous Oracle Networks

Taken from a recent Chainlink Node Operator article, it shows how each oracle network operates completely separate from each other oracle network.
  • Who and how many independent oracles are involved
  • Where oracles source data from and what computation the oracle network performs
  • How data is secured and the frequency at which it’s provided on-chain
  • And various other important parameters.

The Progression of Oracle Services Enabled by Chainlink

Price Reference Data Feeds

Chainlink’s widely used ETH/USD price feed oracle network

Any Web API

Any input, any output, on any blockchain
  • Weather data
  • IoT sensors
  • Sport scores
  • Gaming results
  • Credit ratings
  • AML/KYC info
  • Election results
  • Traditional payment rails
  • Interbank transfers
  • Enterprise ERP/CRM backends
  • Smart locks for rentals
  • Transactions on other blockchain networks

Verifiable Randomness

Additional Off-chain Computations

From Chainlink’s blog on Fair Sequencing Services: Enabling a Provably Fair DeFi Ecosystem: “Fair Sequencing Service with mempool monitoring. Users send two transactions, T1, followed by T2, to the contract SCON. The oracle network observes the two transactions, orders them by time of arrival in the mempool, and forwards them to SCON.”
  • Fair Sequencing Services (FSS) — Order blockchain transactions fairly before they are mined as blocks, effectively leveraging Chainlink oracles to mitigate frontrunning and Miner-Extractable Value (MEV) issues on blockchains, also resulting in lower gas costs.
  • Arbitrum RollupsOperate as validators for layer 2 Rollup chains, allowing Chainlink oracles to execute solidity smart contracts off-chain in a scalable and trust-minimized manner via fraud proofs and staking.
  • Mixicles — Create on-chain privacy by monitoring the execution of a smart contract and triggering its settlement on a mixer based on that input, effectively using Chainlink oracles to decorrelate the contract's inputs from its outputs.
  • DECO — Generate zero-knowledge proofs (ZKPs) on off-chain data, enabling users to prove sensitive facts about TLS web sessions to Chainlink oracles without revealing the data or requiring server-side modifications.
  • Town Crier — Utilize a trusted execution environment (Intel SGX) to process data in a black box computing environment, providing Chainlink oracles with the ability to offer a wide variety of secure, high-throughput, and confidential computations (even to the oracle itself).

Blockchain Abstraction Layer

Conclusion

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Breaking down the information asymmetry on Chainlink, smart contracts, and the cryptocurrency ecosystem. Founded by The_Crypto_Oracle and ChainLinkGod

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