This article was first published on Chainlink
Since its launch in 2017, the Chainlink Network has emerged as an essential bridge for feeding reliable, high quality data to and from blockchain networks, now securing over $4 billion in value for DeFi smart contracts and supporting a growing ecosystem of over 300 integrations. In his SmartCon keynote last month, Chainlink Co-Founder Sergey Nazarov explained in-depth how decentralized oracle networks are both accelerating innovation in decentralized finance and offering traditional institutions an abstraction layer for easily and securely interacting with the ever-expanding ecosystem of blockchain networks.
Below are key quotes and takeaways from Sergey’s discussion “Creating Definitive Truth,” as well as a snapshot of how Chainlink’s technologies are evolving to enable a global transition to a smart contract-based economy.
Definitive Truth About Real-World Data
In simple terms, the unique innovation of blockchain technology is the creation of “definitive truth”—a tamper-proof method of coming to agreement in a way previously unimaginable in computing systems. The Bitcoin blockchain first demonstrated this new form of agreement in its creation of a cryptographically-secured, immutable record around ownership of Bitcoin.
On a blockchain like Ethereum, we start to see definitive truth around a wider range of transaction types beyond payment: token generation, token movement, voting, lending, borrowing, and more. Whereas the Bitcoin blockchain reaches definitive truth about the state of address balances, a highly programmable blockchain like Ethereum achieves definitive truth about the state of smart contracts. The question is, what happens when we can build smart contracts not just about token movements and ownership, but about real-world data and events? This profound opportunity has been the central focus of Chainlink.
Because of their extremely secure architecture, blockchains by design are not built to digest real-world, “off-chain” data. This disconnect—between the promise of decentralized computation and the pervasion of our modern data and API ...
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