Blockchain, Cryptocurrency, News & Updates

Chainlink Oracles joined by Nervos Network for off-chain Connectivity

August 18, 2020

The open-source, public blockchain ecosystem and collection of protocols, Nervos Network, announced its incorporation with reorganized oracle provider Chainlink earlier.

The efforts would see Nervos use Chainlink’s services as a data provider for dApps built on the former’s platform, the firm said in a blog post.

It would see Nervos use Chainlink’s services as a data provider for dApps built on the former’s platform, the firm said in a blog post.

dApp’s development helped by Chainlink

According to Nervos, off-chain Connectivity forms one of the most important aspects of a decentralized network. However, integrating with third-party data feeds and sources generates a myriad of trials that can negatively impact network safety and dependability, none of which Nervos is eager to compromise.

To counter the issues, the firm combined Chainlink for its decentralized oracles answer. The latter procures data from “outside” a blockchain to within, guaranteeing verifiability and data legitimacy. This is essential as blockchains, by design, can only store data and not validate the contents.

Nervos explains how Chainlink oracles will be deployed. Image: Nervos

With the incorporation, developers interested in dApp development and testing on the Nervos platform can consume Chainlink’s data. This is sourced from a large, independent pool of node operators and other high-quality data resources.

This integration would help “unlock a variety of new use cases on Nervos, including DeFi financial contracts triggered by real-time market data, insurance products connected to IoT networks, gaming applications dependent on verifiable randomness,” said Nervos.

Meanwhile, Sergey Nazarov, the Chainlink co-founder, said of the development:

“We’re excited to help integrate Chainlink’s secure and reliable oracles into Nervos, opening up a wide array of next-generation data-driven applications built on Nervos’s innovative layer-1 architecture.”

He included that making off-chain data resources presented on-chain would allow Nervos to provide more value to “both its developers and users, leading to additional use cases in DeFi, Gaming, Insurance, and more.”

Oracle usage

Nervos said creators could join existing oracle networks or build their customized designs. It listed some of these features as below:

1. An extensive collection of mechanical, Sybil-resistant node operators can be accumulated in unique ways to ensure no one oracle node is a single point of a letdown.

2. 35+ existing reorganized oracle networks for opening pricing data of digital assets, FX rates, commodities, indices, and more. Chainlink’s Price Reference Data is jointly maintained by numerous different DeFi applications, creating an excellent public model that lowers the costs for each user as more projects join.

3. Chainlink’s Verifiable Random Function to acquire a fair and unbiased source of on-chain randomness that is confirmable on-chain by smart contracts. This allows creators to use certain unpredictability in their smart contract applications, such as within blockchain games, to seed rare NFTs and augment in-game scenarios.

Terry Tai, the Nervos co-founder, believes that oracles play a critical role in building protocols like progressive, smart contract applications.

“Chainlink not only greatly expands the amount of data our developers can use when building on Nervos, but it gives them the tools to secure this new surface in a highly secure and reliable manner.”

Both Nervos Network and Chainlink are portions of China’s ambitious Blockchain Service Network that aim to build an “internet of blockchain” and power dApps, projects, and private or public applications part of the project.

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