SAN FRANCISCO, Aug. 12, 2021 /PRNewswire/ -- A key component of onboarding projects onto Arbitrum One—a fully-featured Optimistic Rollup layer 2 network that enables highly scalable and low cost smart contracts— is integrating critical infrastructure and tooling to power them. A common request from smart contract developers is access to Chainlink. Most notably, DeFi applications need high quality financial market data directly on-chain to power use cases like money markets, advanced DEXes, futures and options platforms, algorithmic stablecoins, and more.
We're excited to announce that the wait is over! Chainlink's industry-leading decentralized oracle network is now running live on Arbitrum One. This initial integration involves native support for the numerous USD-denominated Chainlink Price Feeds, with plans to rapidly scale support for new price pairs and other types of data feeds, matching our ecosystem's growing demand for DeFi and hybrid on-chain/off-chain smart contracts in other industries like sports, gaming, insurance, NFTs, and more.
If you are a developer and want to integrate Chainlink Price Feeds with your smart contract on Arbitrum One or the Arbitrum Rinkeby testnet, please refer to the following documentation: Arbitrum Price Feeds.
Having been battle hardened on the Arbitrum testnet for over four months and already proven to secure tens of billions of dollars in value on the Ethereum base layer, Chainlink Price Feeds give Arbitrum dApps access to accurate, decentralized, low-cost, and high-frequency price updates in order to value various assets on-chain in real time. Importantly, Arbitrum empowers developers to integrate Chainlink Price Feeds into their dApps without needing custom infrastructure or contract rewrites.
Both new and existing protocols on Arbitrum now have native access to highly reliable price data via Chainlink. Many leading DeFi applications operating on the Ethereum Mainnet today plan to use Chainlink Price Feeds within their Arbitrum deployment, including Aave, a decentralized money market and largest DeFi protocol by Total Value Locked (TVL), as well as MCDEX and Tracer DAO.
Development teams needing oracles on Arbitrum can use Chainlink and receive the same data quality and oracle reliability guarantees already demonstrated on the Ethereum baselayer, but at lower costs and higher update frequencies. Some of the 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, weighted by volume, and cleaned from outliers. Chainlink's data aggregation model generates accurate global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
- Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. 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 the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network. Each node has an on-chain performance history which can be analyzed by users, creating greater transparency.
- Economy of Scale — Chainlink Price Feeds benefit from an economy of scale effect, where increasing adoption of both Arbitrum and Chainlink allows multiple projects to collectively use and fund shared oracle networks to fetch commonly required datasets. This allows DeFi projects to get premium data quality and robust oracle security for a fraction of the total cost.
On top of Price Feeds, Chainlink intends to offer additional services on Arbitrum One in the future such as Chainlink Verifiable Random Function (VRF) to provide on-chain gaming dApps and NFTs provably fair random numbers, Chainlink Proof of Reserve (PoR) to audit the collateralization of tokenized assets, and the ability to call any web API, enabling any premium off-chain data source to be used on-chain. Chainlink Labs has played a key role in ensuring the long-term success of Arbitrum and we look forward to continuing our work together to provide smart contract developers access to all of the off-chain services they require for their unique use cases.
"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," stated 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."
"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," stated Sergey Nazarov, Co-founder of Chainlink. "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."
Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.
Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link and subscribe to the Chainlink newsletter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper. Want to discuss an integration? Talk to an expert.
Arbitrum is a scaling solution for Ethereum developed by Offchain Labs that drastically reduces costs and latency. An "Optimistic Rollup", Arbitrum instantly scales apps, reducing costs and increasing capacity, without sacrificing Ethereum's security. Porting contracts to Arbitrum requires no code changes or downloads as Arbitrum is fully compatible with most existing Ethereum developer tooling. Arbitrum has launched Arbitrum One on Ethereum mainnet and is open for developers, and the team is already working with hundreds of teams ahead of its upcoming public release this month .
SOURCE Chainlink; Arbitrum