blockworks.co
Chainlink, which launched on Ethereum in 2019 as a decentralized finance (DeFi) oracle provider, essentially transports off-chain data to a number of blockchains, including BNB Chain, Avalanche and Polygon.
Oracles like Chainlink are the way that DeFi protocols get access to data that allow them to execute smart contracts. With DeFi controlling over $74 billion in total value locked, the functionality of oracles is crucial.
In a public statement, Coinbase explained that “timely, reliable and accurate data” is essential for Web3 to become the standard. Coinbase is also in a “strong” position to run a Chainlink oracle node because of its “multi-cloud” and “multi-region” infrastructure.
Coinbase said that it is able “to support competitive uptime, ensuring our oracle nodes remain live and handling data requests without skipping a beat.”
Plus, the San Francisco-based crypto exchange already runs nodes on networks such as Aptos, Solana, Ethereum, Algorand and Flow.
Kai Zhao, Coinbase’s Group Product Manager, said he believes Web3 is the future and with this move, Coinbase wants to get closer to that future.
“Our participation in Chainlink’s Decentralized Oracle Network is a statement of our commitment to the security and reliability of smart contracts. We believe on-chain is the next online, and we look forward to working with Chainlink to further this future,” Zhao said.
Other high-profile Chainlink node operators include Amazon Web Services and T-Systems Multimedia Solutions, a subsidiary of telecommunications giant Deutsche Telekom.
Blockworks reported Thursday that Coinbase launched its zero trading fee subscription service called Coinbase One.