Dipper Network to Integrate Chainlink as its Recommended Oracle Solution to Support the Next Generation of High-Scalability Open-Finance Protocols
We are glad to announce that the Dipper Network will natively integrate Chainlink, the market-leading decentralized oracle network, as our recommended blockchain oracle solution. Chainlink will provide price feeds to our decentralized exchange DIPSwap, our synthetic asset protocol DIPSYN, and various other financial products being built on the Dipper Network.
Chainlink is the most widely-used and trusted oracle network in the blockchain field, securing over $4B in assets for many proven DeFi projects such as Ampleforth, Aave, Synthetix, and Loopring. Chainlink has established itself as the de-facto standard oracle solution for DeFi and beyond by providing superior technology that delivers highly accurate data in a highly secure and reliable manner to DeFi protocols.
Why Blockchains Need Oracles
Blockchains are state machines that change state when submitted transactions are validated by a decentralized network of independent blockchain nodes. In order to achieve deterministic execution, the blockchain’s consensus mechanism relies solely on data stored inside the blockchain and the nodes’ shared context of the signed transaction. The result is a highly deterministic computing environment, but one that cannot actively obtain external data. The lack of external data limits the application scope of smart contracts, hence why most initial use cases were around token creation.
Blockchain oracles are middleware that obtain off-chain data on behalf of the smart contract by calling external APIs and then delivering that data on-chain. However, a single oracle presents an unavoidable single point of failure risk, which has been proven though numerous oracle attacks that it’s not a secure or reliable method of triggering a smart contract. Even if the smart contract code is flawless, the data that triggers the contract can completely undermine its outcome. The blockchain oracle must be as secure as the underlying blockchain for smart contracts to retain the same security guarantees.
Chainlink is a decentralized oracle network that uses a security model similar to a blockchain and makes full use of economic incentives to ensure security and reliability of services. Chainlink utilizes decentralization of data sourcing and data delivery by using multiple Sybil-resistant oracle node operators and multiple independent high-quality data sources to provide an highly available, accurate, and tamper-resistant decentralized price feed directly available on-chain. This method effectively avoids any single points of failure.
Chainlink, The Recommended Oracle for Dipper Network
Founded in 2019 by Captain Huang, former Chief Researcher at GXChain, the Dipper Network’s goal is to solve the problems that hinder open finance development. These problems include the connection between blockchains, value capture at layer one, DeFi protocol scalability, and more through diversified cross-chain technology, state rent mechanisms, and perfect basic financial agreements.
Initially, we plan to release two DeFi protocols: the decentralized exchange DIPSwap and the synthetic asset protocol DIPSYN. Both of these protocols will provide users and developers with new financial opportunities, and both need to securely access various prices for cryptocurrency, commodities, and stock prices.
The above protocols, along with the subsequent planning of a decentralized loan platform called DIPBank, a binary options protocol called DIPDER, an insurance platform called DIPInsure, and various other protocols on the Dipper Network and Cosmos ecosystem will be able to access the safe and reliable oracle data of Chainlink through our integration.
We are also exploring how to use Chainlink’s Trusted Execution Environment (TEE)-based oracle TownCrier and privacy-preserving oracle technology DECO to unlock multiple confidential, open finance use cases on the Dipper Network. For example, a personal loan program based on off-chain reputation can use TownCrier or DECO to handle users’ personal data securely and confidentially to facilitate unsecured loans on-chain. Correspondingly, small and medium-sized enterprise financing can adopt the above schemes to access and process encrypted government data or enterprise data to simplify financing processes.
Dipper Network is also planning to be an interchain resource for Chainlink oracles across the Cosmos ecosystem. Based on the Cosmos’s IBC protocol, users can send transactions directly to the Dipper Network to obtain Chainlink oracle data. By building basic financial protocols, Dipper Network is committed to becoming a safe and complete open financial hub for accessing stable coins, decentralized exchanges, lending protocols, synthetic assets, and more. Third-party developers and Cosmos ecosystem participants can leverage our Chainlink integration to build more advanced DeFi dApps connected to real-world data.
“In the field of open finance, data security and reliability are extremely important. After detailed investigation and evaluation, we decided on Chainlink as the preferred oracle solution for Dipper Network. Chainlink’s decentralized design prevents Sybil and mirroring attacks, and the diversification of oracles and data sources used within its decentralized infrastructure effectively disperses the risk of data distortion and network downtime,” said Captain Huang, Dipper Network CEO. “We believe that Chainlink oracles will bring secure and easy-to-integrate oracles to the DeFi dApps and third party developers building on Dipper network, which also helps us better serve the Cosmos ecosystem and other heterogeneous networks. “
How to use Chainlink on Dipper Network
The “Oracle” module being built by the Dipper Network’s development team includes a series of contracts, an External Adapter, and External Initiator. Since we are fully compatible with EVM, it reduces the difficulty of migrating Chainlink’s smart contracts. Different from the use of Chainlink oracles in Ethereum, the transaction sent by the user through the consumer contract is triggered by the external initiator in the form of an event, and then calls the Dipper chain node to provide data services. The service returns the obtained data to the contract through the Dipper external adapter. Chainlink oracles can be registered and adapted as a trusted chain data service provider on the Dipper network.
The LINK token (ERC677 with ERC20 functionality) will be transferred to the Dipper network through the “Dimension Gate” cross-chain tool to allow users to pay for oracle services natively on Dipper Network, as well as have Chainlink nodes servicing Dipper Network to stake LINK on-chain in its future staking release.
About Dipper Network
Dipper Network is a decentralized financial network that will use basic financial protocols and cross-chain technology to build a cross-chain, ecological, and generalized financial service facility. It adopts Tendermint’s high-performance consensus algorithm and a secure random number scheme to provide high-throughput services. It redesigned the economic mode to associate DIP with storage and combine the staking mechanism, requiring users to pay for the time cost of occupying the state in order to improve system security and ease high state requirements. It adopts a variety of cross-chain methods to connect various public chains and provides a complete basic financial agreement, from synthetic assets and liquidity to value-added services.
Learn more by joining Dipper’s Twitter or Telegram. Developer documentation can be found on the Dipper docs. Lastly, we encourage you to apply to the Dipper Ambassador Program to get more deeply involved in the community through technical development and community growth of Dipper globally.
Chainlink is the most widely used and secure way to power universal smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.