Integrating Chainlink’s Widely Used Oracles into Nervos to Secure Off-Chain Connectivity
Public blockchains aren’t meant to operate in silos, so off-chain connectivity is often one of the most important aspects of a decentralized network. However, integrating with third-party data feeds and sources often creates a myriad of challenges that can negatively impact network security and reliability, neither of which Nervos is willing to compromise.
That’s why we’re excited to announce that we are integrating with Chainlink to bring its leading decentralized oracle solutions to the Nervos Network!
By leveraging Chainlink’s large collection of independent secure node operators and high-quality data resources, Nervos developers can start constructing next-generation decentralized applications (dApps) that are connected to real-world data and traditional systems without compromising security and reliability.
This integration will unlock a variety of new use cases on Nervos, including DeFi financial contracts triggered by real-time market data, insurance products connected to IoT networks, gaming applications dependent on verifiable randomness, and more.
The Importance of Decentralized Oracles
Oracles play an integral role in executing smart contracts on decentralized networks like Nervos. Because blockchains don’t provide native access to external data, third-party sources — or oracles — are needed to supply this information and ensure the execution of smart contracts.
On the Nervos layer 2, one of the key protocols for building advanced computational applications is oracles. Many smart contracts will need access to data resources existing on other blockchains or in non-blockchain infrastructure. As such, these smart contracts require secure and reliable oracles to retrieve and deliver data to the application and validate the trustworthiness of the data using decentralization and/or crypto-economic proofs.
Through Nervos’ integration with Chainlink — a highly generalized framework for building and running any kind of decentralized oracle networks — developers can join existing oracle networks or build their own customized designs. Some of the features available include:
- A large collection of independent, Sybil-resistant node operators that can be aggregated in unique ways to ensure no one oracle node is a single point of failure.
- 35+ existing decentralized oracle networks for accessing pricing data of digital assets, FX rates, commodities, indices, and more. Chainlink’s Price Reference Data is mutually supported by multiple different DeFi applications, creating a public good model that lowers the costs for each individual user as more projects join
- External adapters that can be written in any programming language to give the oracle read/write capabilities with any API. Nodes can use external adapters to handle password credentials, opening up a massive amount of off-chain resources like premium APIs, enterprise backends, traditional payment systems, private blockchains, IoT networks, and more.
- Chainlink’s Verifiable Random Function to obtain a fair and unbiased source of on-chain randomness that is verifiable on-chain by smart contracts. This allows developers to use provable randomness in their smart contract applications such as within blockchain games to seed rare NFTs and augment in-game scenarios.
Nervos will become a more data-rich environment by onboarding Chainlink’s decentralized network of oracles. It gives our developers another core building block to create next-generation blockchain applications using a variety of layer 2 protocols on top of our layer 1 Nervos CKB.
Chainlink Co-Founder Sergey Nazarov talked about the exciting possibilities of the Nervos and Chainlink integration.
“We’re excited to help integrate Chainlink’s secure and reliable oracles into Nervos, opening up a wide array of next-generation data-driven applications built on Nervos’s innovative layer-1 architecture. By making off-chain data resources available on-chain, Nervos can now offer more value to both its developers and users, leading to additional use cases in DeFi, Gaming, Insurance, and more.”
Nervos co-founder Terry Tai believes oracles play a critical role in building protocols like advanced smart contract applications.
“Chainlink not only greatly expands the amount of data our developers can use when building on Nervos, but it gives them the tools to secure this new surface in a highly secure and reliable manner. We’re excited to see a plethora of new products built on Nervos using real-world data and off-chain connectivity.”
We look forward to releasing more documentation and updates as we move further along in the integration.
To stay updated on all things Nervos:
If you’re a developer and want to quickly get your application connected to Chainlink Price Reference Data, visit the developer documentation and join the technical discussion in Discord. If you want to schedule a call to discuss the integration more in-depth, reach out here.
Chainlink is an open-source blockchain abstraction layer for building and running decentralized oracle networks that give your smart contract access to secure and reliable data inputs and outputs. It provides oracles to leading DeFi applications like Synthetix, Aave, and Kyber Network; numerous blockchains such as Ethereum, Polkadot, and Tezos; as well as large enterprises including Google, Oracle, and SWIFT.
Note: chainlinkecosystem.com does not claim any ownership of this content, all credit to Nervos Network, view official announcement.