Chainlink, the decentralized live price feed oracle token, is live on Arbitrum, beginning with Chainlink Price Feeds for DeFi developers.
The Latest Data Feed Ecosystem Development
The company is developing a new oracle network to support the demand for more accurate price data since DeFi’s Total locked value exceeds $35B.
For the uninitiated, Chainlink is a decentralized oracle network that allows public blockchains and smart contract platforms to bring external, off-chain data sources to on-chain operations with minimal trust in third parties.
It is a noteworthy project tackling the oracle problem — the ongoing challenge of bridging real-world data such as market stats, event outcomes, and even the weather to the blockchain without relying wholly on centralized data providers.
Smart contracts are one of the most creative uses of blockchain technology today. However, they face a significant issue – scalability. Also, Ethereum smart contracts are usually slow. Arbitrum is configured to scale up smart contracts on Ethereum.
Arbitrum tech lowers operational costs providing more scaling with zero security risks. Developers don’t have to rewrite their applications before they can run on the Arbitrum chain.
Thus, its scalability solutions offer smart contracts with better performance, more computation, the ability to accommodate more users, etc. It merely entails moving the entire mechanism off-chain and giving them a much-needed speed boost.
Chainlink is the most widely-used decentralized oracle network. It is an accepted standard in the blockchain space, with platforms like Fetch.ai and Blockstack merging with it. The decentralized oracle networks are presently securing billions of dollars in value for live apps across several different blockchains and now support a wide variety of use cases.
Chainlink isn’t a single oracle network but rather a complete ecosystem consisting of many decentralized oracle networks that run simultaneously or parallel. Chainlink’s development team explained that each oracle network could offer many types of oracle services without cross dependencies’ on other oracle networks.
Chainlink has made a recovery from the downswing in February. The drop from the all-time high of $37 managed to secure and embrace support at $20. A rebound came into the picture and has been persistent despite the resistance at $31. If LINK breaks above this crucial resistance, a massive breakout will likely occur above the record highs.