One of the most important components when it comes to onboarding projects on Arbitrum One is to integrate tooling and critical infrastructure that can power them. One of the most common requests was the ability to access Chainlink.
Finally, Live On Arbitrum One
Arbitrum One has finally announced that Chainlink’s decentralized oracle network is live on Arbitrum One. Initially, the integration will include native support for USD-denominated Chainlink price feeds. Support for new price pairs and other data feeds will also be added to match the Arbitrum ecosystem’s demand for DeFi and hybrid on/off-chain smart contracts in industries such as gaming, sports, NFTs insurance, etc.
Access To High-Frequency Price Updates
The Chainlink Price Feeds were tested on the Arbitrum testnet for four months, with the feeds securing billions in value on Ethereum. Through the Chainlink Price Feeds, Arbitrum can access decentralized, accurate, low-cost, and high-frequency price updates, allowing it to value on-chain assets in real-time.
Arbitrum also enables developers to integrate the Chainlink Price Feeds into their decentralized applications without the need for contract rewrites or any custom infrastructure.
Price Data Accessible By Old And New Protocols
With the Chainlink integration, both old and new protocols on Arbitrum now have access to reliable price data. Leading DeFi applications such as Aave, MCDEX, and Tracer DAO plan to use the Chainlink Price Feeds within their Arbitrum deployment.
Teams that require oracles on Arbitrum can utilize Chainlink and access the same high-quality data and reliability guarantee present on the Ethereum base layer. They will also get the data at a lower cost and at a higher update frequency.
Some of the biggest benefits of the Chainlink Price feeds are
- Secure Node Operators - All of the Chainlink Price Feeds have been secured by Sybil resistant, independent, and security reviewed oracle nodes that are run by leading data providers, DevOps teams, and traditional businesses. Chainlink nodes are known for their high reliability, even during high network congestion and high gas prices.
- High-Quality Data - The Chainlink Price Feeds rely on premium data aggregators to source their data, giving them access to data that has been aggregated from both centralized and decentralized exchanges. The data aggregation model employed by Chainlink is able to generate global market prices that are accurate and resistant to data manipulation attacks, flash crash outliers, and API downtime.
- Decentralization - Chainlink Price Feeds can offer significantly stronger protection against downtime or any data manipulation or tampering by the oracle network or the data provider because the price feeds are decentralized at three levels, the data source, oracle nodes, and the oracle network level.
- Economies Of Scale - Chainlink’s Price Feeds can also benefit from increasing adoption of both Chainlink and Arbitrum allows projects to use and fund shared oracle networks, which can then fetch common datasets required.
Additional Services On Arbitrum
Chainlink will also offer additional services on Arbitrum. The services include Chainlink’s Verifiable Random Function (VRF). The VRF provides NFTs and on-chain gaming dApps provably fair random numbers.
The Chainlink Proof-of-Reserve also audits the collateralization of tokenized assets and the ability to call any web API. This allows any off-chain data source to be utilized off-chain.
The Chainlink Price Feeds going live on Arbitrum One has generated considerable excitement on both protocols. Co-Founder of Offchain Labs, Ed Felten stated,
“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 to zero changes to their Solidity code. 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.”
The Co-Founder of Chainlink, Sergey Nazarov, further stated,
“We’re excited to support Arbitrum One by providing the most secure and reliable oracle services to the hundreds of projects building highly scalable and low-cost smart contracts on the layer 2 Arbitrum network. We look forward to helping make Arbitrum One into a data-rich environment, with the native deployment of Chainlink oracles giving Arbitrum developers direct access to Chainlink’s frequently updated data feeds while maintaining an extremely high level of security to enable the creation of more advanced hybrid smart contracts.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.