Chainlink has unveiled a new whitepaper that could revolutionize the decentralized finance (DeFi) industry.
Oracle Networks for Computation
The primary vision of the Chainlink 2.0
whitepaper is to enable anyone to initiate an arbitrary executable on its network.
The whitepaper was released on Thursday.
The comprehensive report captures how the company intends to delve into creating oracle networks for computation.
However, the new whitepaper will enable Chainlink to transform its oracle network into a decentralized Oracle Networks meta-layer.
More importantly, the new arrangement provides opportunities for several use cases given that Chainlink’s services will be extended to the off-chain computation of data.
Instructively, the computational oracles are designed to produce a set of hybrid smart contracts in which parts of the logic could be offloaded to the oracles.
Furthermore, Chainlink's co-founder Sergev Nazarov
explains that the emerging oracle networks will carry out functions that blockchains and layer-two networks are incapable of performing.
He referred to the
Chainlink Verifiable Randomness Function (VRF), which offers unique functions for any on-chain lottery that requires a trusted source of randomness.
Nazarov asserted that the unique functions rendered by the apps make them synonymous with hybrid smart contracts.
He also emphasized that Chainlink will not relent in extending and generalizing its existing computational capabilities.
While Nazarov maintains that
Chainlink is not aimed at replacing existing blockchains and layer-two solutions, he said that its flexibility, customizable solution to compute data, and scaling existing decentralized apps would make it outstanding.
Interestingly, Chainlink will provide the choice of consensus mechanism and nodes to every user of the network.
A Major Decider Of DeFi’s Future
With Chainlink's preparation to launch its decentralized oracle networks, many believe it could impact the continued success of the
DeFi space.
Chainlink has been relentless in the evolution of hybrid smart contracts. Nazarov once explained that the hybrid smart contract is a synthesis of blockchain smart contract applications and the off-chain world’s proof of data.
Besides DeFi being the focal point, other compatible applications to be run on the oracle network
include non-fungible tokens (NFTs) and
stablecoins.
In less than four years, Chainlink’s token (
LINK) has
been on a bullish run, breaking into the list of top twenty cryptocurrencies by market size, currently sitting in the 11th spot just ahead of Bitcoin Cash (
BCH).
Before now,
more than 400 projects have been integrated into Chainlink’s technology
to connect blockchains to real-world data.
The company maintains that oracle networks and hybrid smart contracts will be cutting-edge in the blockchain industry.
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bitcoinexchangeguide.com
16 April 2021 09:23, UTC