Klaytn Partners with Chainlink Oracles for Real-World Connectivity
We are partnering with Chainlink, the decentralized oracle network. Chainlink can support Klaytn’s smart contracts to connect with resources outside the blockchain (off-chain), enabling applications that are integrated with the real-world data and systems.
Blockchains are decentralized infrastructure for processing multi-party transactions with a high degree of integrity. Blockchain transactions, referred to as smart contracts, have basic design logic that stipulates “if x event happens, execute y action.”
The problem is that the blockchain can only compute smart contracts using data already stored in the blockchain (on-chain) and much the data about real-world events is stored outside the blockchain (off-chain).
An “oracle” is a piece of middleware that allows the blockchain to know what’s happening off-chain in the real world. Oracles attest to the occurrence of events, translate the event data into a readable format, and relay that information to the smart contract on the blockchain. The smart contract then uses the data to execute more advanced actions, such as paying out a crop insurance contract when it rains or settling a financial contract based on the current price of an asset.
Since the oracle is an extension of the smart contract, the oracle must be as secure as the underlying blockchain to maintain end-to-end security. Chainlink is a general-purpose framework for building decentralized oracle networks to ensure the integrity of both the data and its delivery to the smart contract.
Chainlink can open up a variety of new use cases on Klatyn across a variety of markets.
- Decentralized Finance (DeFi) — Financial products built on the blockchain need access to market data, such as exchange rates, asset prices, interest rates, and more. Chainlink is able to supply market data to DeFi applications, which can automate the execution of financial products or help provide on-chain audit trails of centralized financial operations.
- Non Fungible Tokens (NFT) — Developers can use Chainlink to build dynamic NFTs for unique digital items that connect and respond to real-world data. For example, a company could launch an advertising campaign where they mint limited-edition prizes as NFTs based on the results of a competition, such as the first user to scan QR codes from all the sponsored locations unlocks the NFT prize.
- Insurance — Chainlink can provide developers with access to web APIs and IoT networks, empowering smart contracts for parametric insurance — an agreement that automatically pays out based on a pre-defined event. For example, crop insurance that pays out for certain weather conditions or flight insurance that settles based on flight schedules.
- Gaming — Blockchain games can augment in-game actions based on real-world data. For instance, Chainlink can connect IoT data, such as a Fitbit, which provides in-game privileges if a user hits a certain exercise threshold. It also provides verifiable randomness as an input to spawn unique in-game items.
- Global Trade — Global trade requires the tracking of goods, the release of payments, and government compliance. Chainlink can provide a trusted mechanism for feeding the contract data about each event along the trade route: GPS (shipment arrival), customs approval (regulatory approval), IoT (quality control), and payment networks (settlement).
“We look forward to providing the Klaytn ecosystem with secure and reliable oracles to enable the development of next-generation decentralized applications. Klaytn can accelerate towards its goal of blockchain mass adoption with the addition of real-world connectivity made possible by Chainlink oracles.” — Sergey Nazarov, the Co-Founder of Chainlink
Klaytn is a global public blockchain platform developed by Ground X, the blockchain affiliate of the leading South Korean Internet company, Kakao. Klaytn is a service-centric blockchain platform providing intuitive development environment and friendly end-user experience. It is built upon solid reliability and significant stability with substantial service development for mass adoption. The platform allows real world applications of large scale to be produced right away so that our end-users can make full use of services without much expertise in blockchain or cryptocurrency.