Chainlink: Low-Level Infrastructure for Inter-Oracle Competition

Source
  • Define the Underlying Network Infrastructure of Chainlink
  • Identify the Differences Between Blockchain Networks and the Chainlink Network
  • Showcase How to Build any Oracle Network Design with Chainlink
  • Look at Inter-Chainlink Network Competition

The Underlying Network Infrastructure of Chainlink

Chainlink as a heterogeneous oracle network
A monolithic oracle network operates as a unified computing entity when providing oracle services, whereas a heterogeneous oracle network has many oracle network designs computing in parallel without cross dependencies on one another, outside of running the same core software; Source.
Chainlink beyond price feeds and data delivery

Blockchain Networks vs. The Chainlink Network

Public blockchains use distributed consensus, whereas Chainlink functions more as a growing set of isolated networks that each design their own consensus model; Source.
Source
A basic representation of the different parts of the Chainlink Network; Source.

Build any Oracle Network Design with Chainlink

  • Any Input — Each oracle network can be designed around what data type needs to be delivered, which data sources it’s pulled from, how many data sources are incorporated, how those data sources are aggregated together, what environment to deliver the data to, etc.
  • Any Output — Oracle networks can also be used to customize how smart contract output events are interpreted, such as initiating a crypto payment on another blockchain, triggering a fiat transaction on a traditional payment gateway, storing metadata in the cloud, updating a database entry in an enterprise backend, and more.
  • Any Blockchain — Chainlink is a blockchain agnostic oracle network that can run natively in any blockchain environment, either by porting Chainlink’s system of contracts directly onto another chain and bridging the LINK token (via a wrapped version) or simply using an external adapter to bridge data from one blockchain environment to another. Learn more in our blog post Connect To All Blockchain Environments Through A Single Chainlink Integration.
  • Any Oracle Nodes — An oracle network can consist of whatever oracle nodes the user prefers, whether that be handpicking nodes based on historical on-chain performance, using a random selection based on a specified off-chain reputation/trust score, choosing nodes based on a specific geographic location for GDPR compliance, or any other selection framework desired.
  • Any Security Framework — Users can build oracle networks using any combination of security guarantees necessary, including increasing decentralization by using many data sources/nodes, layering on privacy enhancements via zero-knowledge proofs (DECO) or trusted hardware (Town Crier), using a censorship-resistant or high-performance blockchain, requiring a certain amount of LINK staked in an on-chain service agreement, etc.
  • Any Performance Enhancement — Oracle networks can be built to satisfy a variety of performance requirements, such as choosing whether to aggregate data on-chain or off-chain, defining the update frequency of the oracle network, selecting which blockchain to run the oracle services on, using specialized hardware for performance enhancements, and more.

“Chainlink has been designed with modularity in mind. Every piece of the Chainlink system is upgradable, so that different components can be replaced as better techniques and competing implementations arise.” — Chainlink Whitepaper

Inter-Chainlink Network Competition

Node vs. Node

An example snippet of the Fiews Chainlink Node as listed on market.link

Oracle Network vs. Oracle Network

The BTC/USD Price Reference Data oracle network listed on reputation.link

Competition Between Third Party Network Services

Conclusion

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SmartContent

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