Chainlink’s decentralized oracle network is now live on Arbitrum One, an optimistic rollup-based layer two scaling solution for Ethereum.
According to the announcement, the integration of Chainlink Oracles on Arbitrum One provides its users native support for numerous USD-denominated Chainlink Price Feeds.
The Chainlink feeds provide Arbitrum with high-frequency price updates in order to value various assets on-chain in real-time. Many leading DeFi protocols have already expressed an intention to utilize Chainlink’s data oracles for their Arbitrum deployments. It includes Aave, decentralized money market and largest DeFi protocol by Total Value Locked (TVL), MCDEX and Tracer DAO.
Primary Benefits provided by Chainlink Price Feeds include:
- High-Quality Data:- Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of “centralized and decentralized exchanges.”
- Secure Node Operators: Chainlink Price Feeds are secured by independent, security-reviewed, Sybil-resistant oracle nodes run by leading blockchain DevOps team data providers. Chainlink nodes have a strong track record for reliability, even during high gas prices and extreme network congestion.
- Decentralized Network:- Chainlink Price Feeds are decentralized at data source, oracle node, and oracle network levels. It generates strong protection against downtime and tampering by either the data provider or the oracle network.
- Economy of Scale:- From the economy of scale effect where increasing adoption of both. It allows various projects to collectively use and fund shared oracle networks to fetch commonly required datasets.
With only just one step of integration, Chainlink intends to offer additional services on Arbitrum One. In the future, Chainlink Verifiable Random Function to provide on-chain gaming dApps and NFTs provably fair random number. It will also offer Chainlink Proof of Reserve (PoR) to audit the collateralisation of tokenised assets, and the ability to call any web API.
Also Read: Uniswap V3 Looks Set For Layer Two Scaling On Arbitrum And Optimism
“Providing smart contract developers on Arbitrum One with native access to Chainlink’s Oracle networks was crucial to ensure all of the smart contract use cases that exist on the Ethereum blockchain can be seamlessly ported over to Arbitrum with next zero changes to their Solidity Code,” said Ed Felten, co-founder of Offchain Labs.
“Integrating Chainlink into the Arbitrum One mainnet for secure oracles was an obvious choice given its proven track record and flexible architecture that can support access to any external resource and off-chain computation.”
