Chainlink’s (LINK) oracle service for providing real-time data to activate smart contract transactions continues to attract a growing number of external projects as partners. At this weekend’s EthDenver Ethereum conference, Chainlink revealed a collaboration with Offchain Labs and their Arbitrum protocol which is seeking an off-chain scaling and privacy solution for Ethereum, as well as working alongside the 0xproject to improve the range of use cases for decentralised exchanges (DEXs).
We’re excited to be working with @offchainlabs on Chainlink oracles now being able to run Arbitrum, providing additional security guarantees and giving developers an entirely new level of privacy, scalability and cost efficiency for their smart contracts. https://t.co/zzpazKollu
— Chainlink – Official Channel (@chainlink) February 14, 2020
We’re excited to collaborate with @0xProject to bring this new DEX functionality to users and looking forward to the novel designs this opens up for teams building at @EthereumDenver. https://t.co/Dyztsy9VM0
— Chainlink – Official Channel (@chainlink) February 13, 2020
The news follows a similar recent announcement from London-based wallet application and card platform Swipe (SXP) who enable the conversion of digital currencies to fiat on-demand.
Swipe is proud to announce that it is leveraging @chainlink to bring decentralized pricing into the Swipe Network 🤝
Read more about this relationship below 👇https://t.co/ixkEGes2EH
— Swipe (@SwipeWallet) February 12, 2020
With established ties already in place with major players like Google, emerging challengers such as Hedera Hashgraph, and the potential derivative market game-changer OpenLaw, Chainlink are positioning to be the trusted data source for the emerging blockchain-based economy.
Reasons for Growth
Blockchain smart contracts need a trigger to activate them which often entails the result of an off-chain event in either the digital markets or the physical world. Whoever provides the necessary result onto the blockchain to activate a contract must ensure the data is correct and trusted by all parties involved.
As Swipe Wallet’s Head of Marketing, Nicole Del Rosario, explained Chainlink’s decentralised structure is a suitable fit for smart contract developers because “Decentralised applications are only as strong as their weakest component. Hence, why highly secure blockchain-based smart contracts are insecure if being triggered by data about price conversions from a single, centralised oracle.”
Ed Felten, Co-founder of Offchain Labs and former White House Deputy CTO, in expanding upon his decision to partner with Chainlink provided a concise analysis of why the oracle service continues to expand its reach into the decentralised finance (DeFi) arena.
In Felten’s opinion, Chainlink “…stood out as an obvious choice given its strong technical team advised by leading academic researchers, great track record of substantially solving the oracle problem for blockchains and robust set of secure nodes/validators for securely executing off-chain computations.”
The LINK token price has mirrored the uptick in adoption and has risen from under a dollar a year ago to be currently trading at around $4.50 today.