The Missing Link: How Chainlinks Pallet Aims to Deliver Greater Informational Access

Thursday 08 April 2021, 1:54 PM AEST - 1 week ago

The Missing Link: How Chainlinks Pallet Aims to Deliver Greater Informational Access

As demand for smart contracts climbs, Chainlinks modular oracle for the Substrate framework aims to power developers and defi applications with trusted off-chain information and pricing data needed to attract projects to Polkadot and Kusama.

Blistering Growth in Defi and Smart Contracts Beckon New Layer of Trust

As the smart contract revolution continues to gain traction, the fissures and flaws in existing infrastructure that supports these transactional protocols are becoming more apparent. Among the chief issues facing smart contracts, costs and security are the main factors in the spotlight.

To continue growing and scaling these unique protocols while not only addressing the accompanying shortcomings, smart contracts will effectively need to be smarter. Yet, given blockchains validation constraints, which are intended to preserve stability and security, there is a barrier to off-chain information by design.

Concerning smart contracts, satisfying contractual conditions may depend on external data (like pricing for instance), which may not be available on the corresponding blockchain hosting the contract itself. Besides creating a unique headache for developers, it corresponding restricts the use cases of smart contracts.

Chainlink stepped in with one answer among the pioneering solutions after introducing oracles to the blockchain universe. The main idea behind oracles involves connecting trusted external data sources to smart contracts, providing the missing link between the onchain and offchain worlds.

Smart Contract Adoption Depends on Data Access & Availability

Just like an API can connect two separate systems and share information, Chainlink can connect smart contracts to external data sources in the same manner. Akin to the premise that centralized sources of information can have a slant or bias, the idea behind Chainlink is to decentralize information inputs and outputs. This helps maintain a commitment to building open-source resources for developers that a single, controlling entity cant compromise.

One of the main applications of Chainlink is pricing information, especially in the realm of decentralized finance (defi) applications. Borrowing and lending pr ...

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