Bessie Liu

The beta introduction of Chainlink Functions enables developers to use a single oracle network for data configuration and computation.



This means that developers can use any data source of their choice, ingest it into Functions, and then define the code they wish to compute the data source with, Chainlink co-founder Sergey Nazarov told Blockworks in an interview.



Historically, on <a href="https://blockworks.co/tag/chainlink">Chainlink</a>, developers could create multiple networks that were focused on specific tasks.



“Developers have to define what a network does. It couldn’t do just data configuration or computation, it could just do one or the other,” Nazarov said. “With Functions, you no longer need to make these two networks. Both these things can now work together in a network and you can build it in an hour instead of days.”



Chainlink Functions is part of a broader plan to create a decentralized computing marketplace, where developers can combine various functionalities to create a verifiable application.&nbsp;



Other available tools include Chainlink Automation and its data streaming service.



Similar to how on Amazon Web Services, where there are low code environments and specialized tools, Chainlink Functions will be an easier-to-use environment, whereas Chainlink Automation and data streaming are specialized tools.&nbsp;



“Data streams is a very efficient specialized tool for derivatives,” Nazarov explains. “That&#8217;s basically low latency data. And that&#8217;s something that has now gone live on to production with the first big user of data streams, GMX.”



Chainlink Automation, on the other hand, is a tool primarily focused on triggering things on-chain. A developer could use Chainlink Automation to trigger a smart contract every two hours, for example.



This means that gas costs can be significantly reduced, Nazarov said, as developers now can customize logic.&nbsp;



“This is like a big unlock, in my opinion, for what people can build, that’s what we want to do,” Nazarov said. “We don’t make any end-user applications, we just make the infrastructure.”



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Chainlink moves a step closer to creating a decentralized computing marketplace

Bart Hillerich

<hr class="wp-block-separator has-alpha-channel-opacity"/>



Key takeaways



<ul>
<li>Calling on its experience at Maker and collaborating with <a href="https://centrifuge.io/" target="_blank" rel="noreferrer noopener">Centrifuge</a>, Chronicle Labs is exploring solutions for providing reliable, accurate, and tamper-proof information on real-world assets (RWAs) to blockchains, ensuring data security, regulatory compliance, and fostering trust in the DeFi sector.</li>



<li>Chronicle Labs&#8217; Scribe promises heightened security and efficient data transfer. Its innovative approach has led to over a 60% reduction in gas usage during testing, making it a pivotal advancement in the Oracle domain and bringing the cost of Oracle operations down considerably.</li>
</ul>



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Oracles are crucial in transmitting data on-chain, underpinning the <a href="https://blockworks.co/category/defi">decentralized finance (DeFi)</a> revolution. Yet, despite their importance in DeFi, the growth in Oracle technology has remained relatively static.



The efficiency of on-chain Oracles, particularly on platforms like <a href="https://blockworks.co/tag/ethereum">Ethereum</a>, is constrained. This limitation impacts DeFi&#8217;s potential. Many Oracles are not easily accessible, often hampered by costs or the protocol team’s availability, and also tend to be lacking in true transparency and decentralization, both core to DeFi principles. <a href="https://chroniclelabs.org/" target="_blank" rel="noreferrer noopener">Chronicle Protocol</a>, in this context, presents a novel solution to these prevalent on-chain issues.


<div class="wp-block-image">
<figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="2560" height="1344" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Hero-image-with-Logo-2-scaled.jpg?w=1024&amp;h=1024" alt="" class="wp-image-74308" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Hero-image-with-Logo-2-scaled.jpg?w=2560 2560w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Hero-image-with-Logo-2-scaled.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Hero-image-with-Logo-2-scaled.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Hero-image-with-Logo-2-scaled.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Hero-image-with-Logo-2-scaled.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Hero-image-with-Logo-2-scaled.jpg?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Hero-image-with-Logo-2-scaled.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Hero-image-with-Logo-2-scaled.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Hero-image-with-Logo-2-scaled.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Hero-image-with-Logo-2-scaled.jpg?w=80 80w" sizes="(max-width: 2560px) 100vw, 2560px" /><figcaption class="wp-element-caption">An artistic interpretation of Chronicle Protocol | Source: <a href="https://chroniclelabs.org/" target="_blank" rel="noreferrer noopener">Chronicle Labs</a></figcaption></figure></div>


In this investor’s guide, we’ll dive into what Oracles are, as well as the history of Chonicle Protocol and how it’s looking to spark the next generation of DeFi growth with its launch.



<h2 class="wp-block-heading">First things first—what are Oracles?</h2>



Blockchain Oracles function as secured passageways, linking blockchains to the external world and different blockchains to each other. They transfer data, ensuring its validity before letting it pass through. While Oracles don’t generate the data, they act as intermediaries, confirming its authenticity and moving it from its origin to the end-user. This data might encompass price details, voting outcomes, or sports event results.



Without these on-chain Oracles, blockchain applications would be akin to secluded islands, restricted to data from their own network. Such limitations would constrict the potential applications of blockchain technology. Hence, on-chain Oracles play a crucial role in the Web3 framework, acting as enablers for all the wonderfully creative ideas this industry has.


<div class="wp-block-image">
<figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="2320" height="2320" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Decentralized-Connected.jpg?w=1024&amp;h=1024" alt="" class="wp-image-74307" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Decentralized-Connected.jpg?w=2320 2320w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Decentralized-Connected.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Decentralized-Connected.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Decentralized-Connected.jpg?w=150 150w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Decentralized-Connected.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Decentralized-Connected.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Decentralized-Connected.jpg?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Decentralized-Connected.jpg?w=257 257w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Decentralized-Connected.jpg?w=261 261w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Decentralized-Connected.jpg?w=219 219w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Decentralized-Connected.jpg?w=80 80w" sizes="(max-width: 2320px) 100vw, 2320px" /><figcaption class="wp-element-caption">An illustration of Ancient Greek Oracle Temples connected by a network | Source: <a href="https://chroniclelabs.org/" target="_blank" rel="noreferrer noopener">Chronicle Labs</a></figcaption></figure></div>


In the context of blockchain and DeFi, RWA (“Real-World Assets”) Oracles are a type of Oracle that provides information about real-world assets (like real estate, stocks, commodities, etc.) to the blockchain. They ensure there&#8217;s a reliable, accurate, and tamper-proof way to reflect the value and status of real-world assets in the blockchain environment. The data they provide can be used for various purposes, including loan collateralization, asset tokenization, or any other DeFi applications that involve real-world assets.



Chronicle Labs is currently exploring an institutional-grade infrastructure layer for RWAs with <a href="https://twitter.com/centrifuge" target="_blank" rel="noreferrer noopener">Centrifuge</a>, a leader in real-world asset tokenization. The cost-efficiency, security, and verifiability upgrades of Chronicle Oracles uniquely position Chronicle to develop the infrastructure needed to effectively connect RWAs to on-chain capital and vice versa.



<h2 class="wp-block-heading">The value-driven Oracle of MakerDAO</h2>



Chronicle Protocol aspires to become the premier open and authentic data chronicler. Its foundations rest on verifiability, accessibility, and affordability. Along with its inherent scalability, integration, and security, these values drive the protocol forward.



Chronicle, having its roots in <a href="https://makerdao.com/en/" target="_blank" rel="noreferrer noopener">MakerDAO&#8217;s</a> Oracle team, invented the first Oracle on Ethereum to facilitate the introduction of SAI in 2017. Four years later, with MakerDAO&#8217;s backing, the team branched out to establish a fresh brand on a mission to make the protocol accessible to a wider audience: thus, Chronicle Protocol was established.



While Chronicle Oracles have safeguarded over $10B for Maker since 2017, their innovative tech was only available to Maker and its ecosystem—until now.&nbsp;



<h2 class="wp-block-heading">Chronicle Labs unveils the future of Oracles: Meet Scribe</h2>



Chronicle Protocol was developed to be blockchain agnostic, implementable on any chain, and accessed through its on-chain interface, which is plug-and-play with users that have previously used Chainlink or Maker Oracles. For the first time, Chronicle not only supports MakerDAO but is also extending its protocol to the expansive blockchain ecosystem, starting with Polygon zkEVM via a collaboration with <a href="https://polygon.technology/" target="_blank" rel="noreferrer noopener">Polygon Labs</a>.



This has been accomplished by Chronicle Labs developing Scribe, a proprietary next-gen Oracle cryptographic primitive, to address the high costs of on-chain computations for Oracle updates.&nbsp;



Initial tests suggest that Scribe will reduce gas consumption by over 60% compared to an earlier iteration, and an even higher gas saving versus Chainlink, positioning it as a potential game-changer for the industry.


<div class="wp-block-image">
<figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="2560" height="1400" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Data-scaled.jpg?w=1024&amp;h=1024" alt="" class="wp-image-74311" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Data-scaled.jpg?w=2560 2560w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Data-scaled.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Data-scaled.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Data-scaled.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Data-scaled.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Data-scaled.jpg?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Data-scaled.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Data-scaled.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Data-scaled.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Data-scaled.jpg?w=80 80w" sizes="(max-width: 2560px) 100vw, 2560px" /><figcaption class="wp-element-caption">An illustration of Herodotus, the ‘Father of History | Source: <a href="https://chroniclelabs.org/" target="_blank" rel="noreferrer noopener">Chronicle Labs</a></figcaption></figure></div>


To bring about cost-efficient Oracles, Chronicle Labs focused on calldata on L1 blockchains, which is economical; however, L2s introduced a new challenge with affordable computations but pricier calldata. Crafting unique solutions for L1 and L2 might have minimized costs, but it would have added complexity. Aiming for a unified approach suitable for both platforms resulted in Scribe and its optimistic-schnorr hybrid design.



This hybrid system allows multiple parties to co-sign a message, enhancing security while compressing calldata. They adopted an optimistic model on L1, where a proposed price, if undisputed for a certain period, becomes final. In a decentralized fashion, Scribe’s framework allows any relay to submit data to the Oracle contract. If validated, the data, including the optimistic price, is stored.&nbsp;



If a price update seems dubious, a fraud proof can be triggered which verifies the signatures and, if found fraudulent, removes the price and bans the erring Feed. The caller of the fraud proof will also receive all of the Oracle’s ETH as a reward, opening up a new MEV opportunity for searchers, and ensuring an efficient and resilient response to malicious acts.


<div class="wp-block-image">
<figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1927" height="1365" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-The-Chronicle-dashboard-1.png?w=1024&amp;h=1024" alt="" class="wp-image-74310" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-The-Chronicle-dashboard-1.png?w=1927 1927w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-The-Chronicle-dashboard-1.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-The-Chronicle-dashboard-1.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-The-Chronicle-dashboard-1.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-The-Chronicle-dashboard-1.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-The-Chronicle-dashboard-1.png?w=363 363w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-The-Chronicle-dashboard-1.png?w=368 368w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-The-Chronicle-dashboard-1.png?w=309 309w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-The-Chronicle-dashboard-1.png?w=80 80w" sizes="(max-width: 1927px) 100vw, 1927px" /><figcaption class="wp-element-caption">Chronicle Labs’ Dashboard, The Chronicle | Source: <a href="https://chroniclelabs.org/" target="_blank" rel="noreferrer noopener">Chronicle Labs</a></figcaption></figure></div>


Scribe is powering Chronicle’s competitive advantage, but the team hasn’t neglected the user experience; they’re reshaping how DeFi interacts with reliable and verifiable data. Users will be free to swiftly subscribe and unsubscribe to Oracles based on needs, complete with on-chain payment and subscription functionalities. They can easily request the latest data in the DeFi sphere, trace data back to its source &amp; verify its validity, and integrate effortlessly with any blockchain, all via a decentralized on-chain dashboard called The Chronicle.



<h2 class="wp-block-heading">Charting the Future: Chronicle Labs&#8217; Definitive Impact on DeFi</h2>



In the rapidly evolving landscape of decentralized finance (DeFi), Chronicle Protocol emerges as a beacon of innovation, addressing long-standing challenges with on-chain Oracles. By intertwining verifiability, scalability, and adaptability, Chronicle Labs is not just presenting solutions but is actively shaping the future of DeFi. With groundbreaking initiatives like Scribe, Chronicle is establishing new standards in how we approach and utilize on-chain data, bringing down many of the current barriers that exist for on-chain Dapps and protocols. 


<div class="wp-block-image">
<figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="2560" height="1706" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Chronicle-Labs-Team-2-scaled.jpg?w=1024&amp;h=1024" alt="" class="wp-image-74309" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Chronicle-Labs-Team-2-scaled.jpg?w=2560 2560w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Chronicle-Labs-Team-2-scaled.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Chronicle-Labs-Team-2-scaled.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Chronicle-Labs-Team-2-scaled.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Chronicle-Labs-Team-2-scaled.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Chronicle-Labs-Team-2-scaled.jpg?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Chronicle-Labs-Team-2-scaled.jpg?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Chronicle-Labs-Team-2-scaled.jpg?w=392 392w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Chronicle-Labs-Team-2-scaled.jpg?w=329 329w, https://blockworks-co.imgix.net/wp-content/uploads/2023/11/Copy-of-Chronicle-Labs-Team-2-scaled.jpg?w=80 80w" sizes="(max-width: 2560px) 100vw, 2560px" /><figcaption class="wp-element-caption">Team Chronicle Labs | Source: <a href="https://chroniclelabs.org/" target="_blank" rel="noreferrer noopener">Chronicle Labs</a></figcaption></figure></div>


As we stand at the precipice of a decentralized revolution, Chronicle Labs showcases the transformative power of technology, vision, and collaboration. It&#8217;s clear that the strides made by Chronicle today will resonate in the DeFi community for years to come.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



To explore The Chronicle and gain first-hand insight into how Oracles work, try <a href="https://chroniclelabs.org/dashboard" target="_blank" rel="noreferrer noopener">verifying some price data for yourself!</a> Stay up to date with the team’s journey by following them on <a href="https://twitter.com/ChronicleLabs" target="_blank" rel="noreferrer noopener">X</a> and joining the project’s <a href="https://discord.gg/CjgvJ9EspJ" target="_blank" rel="noreferrer noopener">Discord community</a>.



This content is sponsored by <a href="https://chroniclelabs.org/" target="_blank" rel="noreferrer noopener">Chronicle Labs</a>.



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DeFi’s next growth catalyst: The Oracle breakthrough

Michael Bodley

Chronicle, the oracle specialist on MakerDAO, has launched a standalone protocol in a bid to bring about transparency on the oracles that connect different blockchains.&nbsp;



Several years in the making, the effort is intended to build on Chronicle’s presence as an oracle provider, having $5 billion of assets at its disposal on Maker — marking Chronicle as the second-largest provider of oracles, behind Chainlink.&nbsp;



Chronicle’s total value locked (TVL) in its oracles stood at around 21% of the total asset pool on Friday, with Chainlink controlling approximately 48%.&nbsp;



The team, according to Kunkel, has been setting up instantaneous oracle data feeds that track precise pricing and trading. Kunkel was an early member of <a href="https://blockworks.co/tag/makerdao">MakerDAO</a> and has been working with another alumnus on his new project. 



According to Kunkel, who launched the first oracles on <a href="https://blockworks.co/tag/ethereum">Ethereum</a> in 2017, oracles have for too long operated as “black boxes,” spitting out data with varying degrees of accuracy. In doing so, they publicly offer, by design, little insight into how that data was generated — absent someone having the technical skills taking the time to compile it themselves. 



One central initiative behind Chronicle, he said, is to demystify those data sets, tracking them on more granular levels and also providing free, easy to access dashboards that allow users to tap into the oracles’ collective computing power in new ways.&nbsp;



“The crypto ecosystem developed incredibly quickly,” Kunkel said. “We spent all of this money and time and blood, sweat and tears to build these decentralized and transparent blockchains, and then we spent all of this money and blood, sweat and tears on building these decentralized protocols.”



For some reason, when it came to infrastructure, we just cut all of the corners, and all this infrastructure in crypto is just like a black box — particularly for oracles,” Kunkel continued. “No one understands how they work under the hood. And they’re just fortune tellers that serve up data or prices and are accepted at face value, because [people] trust the brand, and that’s really antithetical to the entire ethos of, ‘Don’t trust, verify.’”&nbsp;



Kunkel’s first oracle was designed to support SAI, which preceded Maker’s <a href="https://blockworks.co/price/dai">DAI</a> stablecoin. The oracles built to sustain <a href="https://blockworks.co/price/sei">SAI</a> are still functioning, he said. 



Chronicle Protocol is <a href="https://blockworks.co/news/polygon-zkevm-live-on-ethereum">launching on Polygon zkEVM, the layer-2 scaling solution for Ethereum that launched in March.</a> It also plans to use zkEVM technology, which allows for smart contract proof and execution without revealing transaction details on Ethereum’s mainnet, to partner with Spark Protocol.&nbsp;



Read more: <a href="https://blockworks.co/news/makers-spark-protocol-dai">Maker to spark ‘new explosion of DAI’ with custom lending market</a>



The protocol’s dashboard, dubbed the Chronicle, “allows anyone to intuitively and provably track the origin of every element of data, end-to-end: creating a high integrity censorship-resistant layer for data transmission,” a statement said.&nbsp;



It’s powered by a consensus network consisting of 22 node operators, including those running on Infura, Etherscan, Gnosis, MakerDAO and <a href="https://blockworks.co/tag/dydx">dYdX</a>. 



The project has been touting cost savings from its oracles, which Kunkel said are the least-expensive on the market. He attributes that to its primitive, Scribe, which he said is “hyper-scalable,” as well as “completely transparent and verifiable.”



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Chronicle Protocol aims to break the ‘black box’ oracle problem

API3, an oracle data feed provider, is moving into a new phase of an ongoing tech rollout.



API3’s first phase brought a self-funded decentralized application programming interface, or dAPI. This was automated oracle infrastructure from a single source data feed, according to Ugur Mersinlioglu, a product owner at API3.



The second phase of dAPI is the release <a href="https://medium.com/api3/introducing-phase-2-managed-dapis-b204670d2545">of managed aggregated data feeds</a>. This new phase enables users to select specifications, such as deviation and time. The team behind the project <a href="https://twitter.com/API3DAO/status/1691804516549902425">announced</a> the second phase on Wednesday.&nbsp;



Oracles are commonly used in Web3 to bring off-chain data onto the blockchain to enable smart contract functionality. They’re a key plank in how information reaches decentralized protocols.&nbsp;



Typically, in Web3, oracle providers have a decentralized middle layer where various different data sources feed the price of the Oracle, according to Mersinlioglu.



The problem, Mersinlioglu explains, is that this doesn&#8217;t guarantee that all these data sources are completely different.



“You could still have a middle layer of 30 people, but they all use one data source and that is not decentralization,” Mersinlioglu said. “We don’t want &#8216;some rando in the middle&#8217; running this oracle node. We want to get data directly from the API so we don’t have to trust another layer.”



For this reason, API3 ensures that all their oracle nodes are operated by the API directly.&nbsp;



“These companies, it is their core business model to sell data, and if they put the wrong data onchain with us, it’s visible, their reputation is on the line,” Mersinlioglu said.



<h2 class="wp-block-heading">The four phases to achieve decentralized APIs</h2>



According to Mersinlioglu, there are currently around three to four hundred active self-funded APIs.



This type of infrastructure is designed like a pay phone and can be used by people who might need price notifications.



The newly-announced second phase builds on that initial stage of work.&nbsp;



“You basically buy a subscription, where we will cover the gas costs and maintain this together with the API providers of oracle nodes on the respective chain that you want to consume it on,” Mersinlioglu said.



In a forthcoming phase three, API3 will introduce an auction function built on top of oracles that will enable anyone to come in and make a bid, receive tamper-proof signed data from providers, and update the price on-chain.



This is possible because there are times when there are values in updates that are not defined by managed parameters.



“They don’t need to essentially wait. They can force an update by paying for it,” Mersinlioglu said.



The final phase for API3, according to Mersinlioglu, would be to create a Nexus Mutual for oracles, referring to the decentralized insurance alternative platform.



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API3 wants to make oracle data more transparent

Sebastian Sinclair

Chainlink (<a href="https://blockworks.co/price/link">LINK</a>) has notched its biggest single-day rally in more than two years following the release of its Cross Chain Interoperability Protocol (CCIP) to developers.



LINK jumped up to 22% on Thursday — from $6.92 to $8.43. It had retraced slightly to $8.36 by the end of the day and now hovers at $8.15, a three-month high. Bitcoin (<a href="https://blockworks.co/price/btc">BTC</a>) and ether (<a href="https://blockworks.co/price/eth">ETH</a>) ended up flat.



As the blockchain ecosystem grows, there’s mounting need for these networks to talk to each other. CCIP aims to <a href="https://blockworks.co/news/chainlink-ccip-launch" target="_blank" rel="noreferrer noopener">enhance communication and data transfer</a> between various protocols.&nbsp;



To celebrate CCIP, Chainlink co-founder Sergey Nazarov explained that Chainlink aims to extend the efforts of Bitcoin, which many consider directly inspired by the 2008 global financial crisis. Nazarov <a href="https://twitter.com/SergeyNazarov/status/1682137527673577472" target="_blank" rel="noreferrer noopener">tweeted</a>:



&#8220;The 2008 financial crisis led to the creation of Bitcoin because toxic assets were created by a poorly managed financial system that left society with the costs. We have an opportunity to build a better financial system that is cryptographically guaranteed, transparent, and gives control of risk over to the parties that it affects most.&#8221; 



Nazarov said Chainlink and CCIP push to &#8220;accelerate the speed at which this world happens on-chain.&#8221; The goal is a &#8220;fair, transparent and largely derisked global financial system.&#8221;



&#8220;As CCIP becomes the most widely used connectivity standard, we will initially see two largely separate on-chain networks of value: one for institutional/bank chains and the existing public blockchain DeFi ecosystem,&#8221; he said.



Nazarov&#8217;s hope is that CCIP can morph those two networks into one that&#8217;s entirely on-chain.



<figure class="wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish"><div class="wp-block-embed__wrapper">
<iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="Interactive or visual content" src="https://flo.uri.sh/visualisation/14509034/embed#?secret=LrAfnNuWjF" data-secret="LrAfnNuWjF" frameborder="0" scrolling="no" height="575" width="700"></iframe>
</div><figcaption class="wp-element-caption">Chainlink’s market cap is now almost $4.5 billion, up 60% over the year to date (chart by David Canellis)</figcaption></figure>



CCIP works by using Chainlink&#8217;s oracles (a network of data providers). Developers can create products on top of CCIP, which means smart contracts on one blockchain can send messages via Chainlink oracles to another blockchain, verifying data in the process.



With its early access mainnet release earlier this week, developers working on Polygon, Optimism, Ethereum and Avalanche can now use Chainlink&#8217;s CCIP.



Since Monday, there have been over <a href="https://dune.com/queries/2741770/4567775">514 transactions</a> using CCIP with the most popular routes being Ethereum to Avalanche or Optimism, per Blockworks Research.



To date, CCIP has generated more than $12,000 in LINK revenue over the past four days, according to a <a href="https://dune.com/ericwallach/chainlink-ccip-revenue">Dune dashboard</a>. Users who pay for CCIP transaction charges using LINK are offered a reduced rate. This, in turn, aims to enhance the value for token holders.



“It will be interesting to track Chainlink’s protocol revenue as more projects establish CCIP integrations,” Blockworks Research analysts wrote in a Thursday <a href="https://blockworks.co/newsletter/issue/32127952">note</a>.



Updated Jul. 21, 2023 at 9:23 am ET: Added context.



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Chainlink rallies hardest since May 2021 after CCIP release

Decentralized liquidity protocol Curve is looking at reducing its reliance on third-party protocols.



Using its lending-liquidating automated market maker algorithm (<a href="https://blockworks.co/news/curve-deploys-stablecoin-smart-contract">LLAMMA</a>) — an algorithm that combines both a traditional lending pool with an automated market maker (AMM), Curve has made it possible for collateral to be gradually liquidated over a price range — rather than simply at one price.



LLAMMA currently relies on an external oracle by Chainlink to operate its lending pools. When the collateral price is higher, all of the user&#8217;s deposits will remain secured within the deposited collateral. However, when the collateral value drops below a certain threshold, the user&#8217;s deposits will be subject to liquidation.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">AMMs are at the root of everything elegant and useful in DeFi. That&#39;s why <a href="https://twitter.com/CurveFinance?ref_src=twsrc%5Etfw">@CurveFinance</a> put LLAMMA at the center of its lending protocol.<a href="https://twitter.com/smyyguy?ref_src=twsrc%5Etfw">@smyyguy</a> breaks down this novel mechanism👇&mdash; Blockworks Research (@blockworksres) <a href="https://twitter.com/blockworksres/status/1661797596497862656?ref_src=twsrc%5Etfw">May 25, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



“Pretty much everything relies on Chainlink, but recently Curve governance passed a proposal to basically permit new types of pools that have their own internal oracal,” <a href="https://www.blockworksresearch.com">Blockworks Research</a> Senior Analyst <a href="https://twitter.com/smyyguy">Dan Smith</a> explained. 



This means that these liquidity pools can keep track of an exponential moving average of the traded price, taking an average based on trading size and time, similar to what an oracle does. 



Unlike Chainlink, which aggregates the prices of an asset from multiple different sources, Curve would be looking at a price based on a single liquidity source, making it inherently more risky.&nbsp;



It is important, therefore, that there is deep liquidity in these pools to ensure that the pool is not subject to price manipulation.



“If you have a deep enough pool, such as the stETH pool with billions of dollars in staked ETH liquidity, the price will be difficult to manipulate. Even if someone came in and started dumping into it, they can’t just move billions of dollars of liquidity around,” Smith said.



The community is currently determining whether or not these solid price oracles should be implemented in select pools with deep liquidity.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Gauge for stETH pool with a solid price oracle is in and has votes! Enjoy <a href="https://t.co/jc02CtOQCy">pic.twitter.com/jc02CtOQCy</a>&mdash; Curve Finance (@CurveFinance) <a href="https://twitter.com/CurveFinance/status/1661524731378401280?ref_src=twsrc%5Etfw">May 25, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



“This is what DeFi was intended to be, getting away from the reliance on something other than your own protocol,” Smith said.



If you want to learn more about Curve and its different lending pools, please check out Blockworks Research&#8217;s <a href="https://www.blockworksresearch.com/research/curve-stablecoin-and-lending-market">latest report</a>.



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Curve May No Longer Need to Rely on External Oracles

James Cirrone

Chainlink, which launched on Ethereum in 2019 as a decentralized finance (DeFi) oracle provider, essentially transports off-chain data to a <a href="https://docs.chain.link/chainlink-automation/supported-networks">number</a> of blockchains, including BNB Chain, Avalanche and Polygon.&nbsp;



Oracles like Chainlink are the way that DeFi protocols get access to data that allow them to execute smart contracts. With DeFi controlling over $74 billion in total value locked, the functionality of oracles is crucial.&nbsp;



In a public <a href="https://www.coinbase.com/cloud/discover/protocol-guides/guide-to-chainlink">statement</a>, Coinbase explained that “timely, reliable and accurate data&#8221; is essential for Web3 to become the standard. Coinbase is also in a “strong” position to run a Chainlink oracle node because of its “multi-cloud” and “multi-region” infrastructure.



Coinbase said that it is able “to support competitive uptime, ensuring our oracle nodes remain live and handling data requests without skipping a beat.”



Plus, the San Francisco-based crypto exchange already runs nodes on networks such as Aptos, Solana, Ethereum, Algorand and Flow.



Kai Zhao, Coinbase’s Group Product Manager, said he believes Web3 is the future and with this move, Coinbase wants to get closer to that future.&nbsp;



“Our participation in Chainlink’s Decentralized Oracle Network is a statement of our commitment to the security and reliability of smart contracts. We believe on-chain is the next online, and we look forward to working with Chainlink to further this future,” Zhao said.&nbsp;



Other high-profile Chainlink node operators include Amazon Web Services and T-Systems Multimedia Solutions, a subsidiary of telecommunications giant Deutsche Telekom.



Blockworks reported Thursday that <a href="https://blockworks.co/news/coinbase-one-launches-zero-fees">Coinbase launched</a> its zero trading fee subscription service called Coinbase One.



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Coinbase Cloud Will Run Chainlink Node in Bid to Improve Smart Contract Security

Macauley Peterson

<div id="highlights-block_634655ddb3f28" class="highlights">
 <ul>
 <li>Mango is currently investigating an exploit of the oracle price feeds for its own governance token</li>
 <li>The hacker responsible is asking DAO members to vote on a proposal that would return a portion of the stolen funds</li>
 </ul>
 
</div>



Mango Markets, a decentralized finance trading platform on the Solana blockchain, said Tuesday it was investigating a hack worth approximately $112 million in digital assets.



Mango said the hacker was able to drain funds from its platform utilizing a technique known as oracle price manipulation — a form of economic attack that has hit other DeFi protocols before.



The actor managed to withdraw various digital assets — mostly stablecoins, including $53.7 million in USD Coin (USDC) and $3.2 million in tether (USDT) — but also solana (SOL).



In an unusual twist, they’re <a href="https://app.realms.today/dao/DPiH3H3c7t47BMxqTxLsuPQpEC6Kne8GA9VXbxpnZxFE/proposal/3WZ5DpZXDvNAK4JwPS1HDPzSinEJUGpBC4XXx9vPtnVS" target="_blank" rel="noreferrer noopener">proposing to return</a> a portion of the stolen funds, namely Marinade-staked solana (MSOL), native SOL and the platform’s own MNGO governance token. The rest the culprit claims as a “bounty.”



That is, of course, if Mango’s DAO community votes yes on the thief&#8217;s proposal.



<blockquote class="wp-block-quote">“By voting for this proposal, mango token holders agree to pay this bounty and pay off the bad debt with the treasury, and waive any potential claims against accounts with bad debt, and will not pursue any criminal investigations or freezing of funds once the tokens are sent back as described above,” <a href="https://app.realms.today/dao/DPiH3H3c7t47BMxqTxLsuPQpEC6Kne8GA9VXbxpnZxFE/proposal/3WZ5DpZXDvNAK4JwPS1HDPzSinEJUGpBC4XXx9vPtnVS" target="_blank" rel="noreferrer noopener">the attacker wrote</a> on the protocol’s governance forum.</blockquote>



The hacker is requesting Mango use its treasury stash of 70 million USDC to repay “bad debt.” This debt derives from an <a href="https://cms.blockworks.co/solana-lending-protocol-faces-governance-conundrum/" target="_blank" rel="noreferrer noopener">incident</a> in June when the Mango community <a href="https://twitter.com/dadadadaffy/status/1539219965492047874" target="_blank" rel="noreferrer noopener">teamed up</a> with another Solana-based lending and borrowing protocol, Solend, to deal with a systemic risk caused by a single large borrower, at risk of liquidation, that put the entire Solana DeFi ecosystem in jeopardy.



The Mango DAO, or stewards of the protocol, should also not pursue any criminal investigations or freeze the attacker’s funds — via centralized stablecoins such as USDC and USDT — once the cryptoassets are returned.



But not all the assets will be returned; while a definitive amount for the bounty was not given, it can be assumed from the tokens omitted from the initial hack that the attacker is requesting to keep well over half of what they stole — substantially more than most “white hat” hackers or <a href="https://cms.blockworks.co/?s=bounty" target="_blank" rel="noreferrer noopener">bug bounty hunters</a> typically receive.



Still, Mango DAO members have so far voted in favor of the hacker’s proposal, with a 99.9% &#8220;yes&#8221; rate from roughly 33 million MNGO tokens — although just a single wallet address is responsible for the lion’s share of the vote. As DAOs go, this one is extremely centralized, with most governance votes being decided by just a handful of addresses.


<div class="wp-block-image">
<figure class="aligncenter is-resized"><img decoding="async" loading="lazy" src="https://lh4.googleusercontent.com/trU04t8jB7XWOD5WPANIn0V_WPQT9lauwb9qncu5j5DiqXFcACTG5GnxwVX3aFRxjwWcmRqTw-RJNNqsciFHU-Ycmi9pB30ehCiUrNjW1T8QOx2lWDsJ2FpZsuV601NVd5CGhPTavLBePiORAbewOcsAbqK2anQML0oV2M7H27yoxDpbwXPjOwkf3Q" alt="" width="800" height="276"/><figcaption>The top voters holding the bulk of MNGO tokens | Source: <a href="https://app.realms.today/dao/DPiH3H3c7t47BMxqTxLsuPQpEC6Kne8GA9VXbxpnZxFE/proposal/3WZ5DpZXDvNAK4JwPS1HDPzSinEJUGpBC4XXx9vPtnVS/explore" target="_blank" rel="noreferrer noopener">Mango governance vote</a></figcaption></figure></div>


A further 67 million yes votes are required for the proposal to pass a quorum threshold during the three-day voting period.



<h3 class="wp-block-heading">Price oracle manipulation</h3>



While the consultation and investigation continue, the platform’s stewards have requested users to cease depositing assets until the situation becomes clearer.



Dapps such as Mango rely on oracles to pull on-chain data for specific tokens. Manipulation occurs when protocols such as data feeds are corrupted, allowing transactions that were not intended.



In the case of Mango, the attacker was able to manipulate their collateral value via the platform before taking out “massive loans” totaling $112,199,876 from Mango’s treasury, security auditing firm <a href="https://twitter.com/osec_io/status/1579969927020412929" target="_blank" rel="noreferrer noopener">OtterSec reported</a> on Twitter.



OtterSec founder Robert Chen confirmed the figure to Blockworks who said the price manipulation was suspected to have occurred on centralized exchanges which Mango used to reference the value of the collateral.



MNGO’s price briefly spiked about 300% to $0.15 in the space of 10 minutes on the FTX exchange, then dropped 88% to under $0.02 following the attack.


<div class="wp-block-image">
<figure class="aligncenter is-resized"><img decoding="async" loading="lazy" src="https://lh3.googleusercontent.com/Ex0Qf7G_cCBVpkcvRInuxhu6D3qAr4Ujh6pQ5uwR_z0s6DxDKHHtistpPfC_lSxNUiHbLG26TMBk51UqyxFtY-glvT72k50Y4emXTJeVPLovBlZN5HHwiBkaWtMjmiHZJpi_SxABEv5w_bQ9b8Sb3L5q2u1yChE0dwG2926O21huIBRc2IJCzQ2mfg" alt="" width="800" height="500"/><figcaption>The MNGO/USD market on FTX, 1-minute time frame | Source: TradingView</figcaption></figure></div>


Solana developer Tom Geshury was credited with being the first to bring the hack to the security auditing firm’s attention.



Geshury told Blockworks the hacker used $10 million to self-trade Mango perpetual contracts and then an estimated $3 million to pump the price of MNGO and execute the plan, before market participants got wind of the scheme and began dumping their tokens.



Mango Markets is <a href="https://docs.mango.markets/tutorials/trading-on-mango" target="_blank" rel="noreferrer noopener">an interface to margin trade</a> on the Serum DEX, which is backed by the crypto arm of trading giant Jump Capital. Jump Crypto’s president Kanav Kariya also confirmed the mechanism at play in the exploit.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Jesus, the attacker pumped and dumped the mango token, which is a thinly traded token. Oracles just report the price. Pyth/Switchboard accurately reported the prevailing prices on exchanges&mdash; Kanav Kariya (@KanavKariya) <a href="https://twitter.com/KanavKariya/status/1579986625060573184?ref_src=twsrc%5Etfw">October 12, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Mango has released a <a href="https://twitter.com/mangomarkets/status/1579979342423396352?s=20&amp;t=UHiIdt-zGgX-qsdd8kfG6w" target="_blank" rel="noreferrer noopener">statement</a> saying it is taking steps to have third parties freeze funds in flight.



<blockquote class="wp-block-quote">“We will be disabling deposits on the front end as a precaution and will keep you updated as the situation evolves,” the group <a href="https://twitter.com/mangomarkets/status/1579979342423396352" target="_blank" rel="noreferrer noopener">said via Twitter</a>.</blockquote>



Blockworks attempted to contact several admins on the Mango Discord channel but was unsuccessful.



A number of protocols have been hit by such attacks this year alone, including DeFi platform Inverse Finance for <a href="https://halborn.com/explained-the-inverse-finance-hack-june-2022/" target="_blank" rel="noreferrer noopener">$5.8 million</a> in June and stablecoin lending platform Fortress Protocol for <a href="https://www.stealthlabs.com/news/fortress-protocol-lost-usd-3-mn-in-oracle-price-manipulation-attack/" target="_blank" rel="noreferrer noopener">$3 million</a> in May.



The attack against Mango comes less than a week after Binance’s own network, BNB Chain, was targeted for <a href="https://cms.blockworks.co/binance-pauses-trading-of-native-token/" target="_blank" rel="noreferrer noopener">hundreds of millions of dollars</a> via a cross-chain bridge exploit. The amount stolen was <a href="https://www.bnbchain.org/en/blog/bnb-chain-a-decentralized-response/" target="_blank" rel="noreferrer noopener">contained to about $100 million</a>.



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Mango Markets Mangled by Oracle Manipulation for $112M

<div id="highlights-block_245540472118b82752189a8e66aaa978" class="highlights">
 <ul>
 <li>The solution is available on more than a dozen blockchains, with plans to expand to additional protocols in relatively short order</li>
 <li>Most random number generators actually have a limited data set, the startup told Blockworks</li>
 </ul>
 
</div>



A random number generator that relies on quantum mechanics to produce smart contract-driven data sets empowered by blockchain technology has launched on more than a dozen cryptocurrency protocols.&nbsp;



API3, in partnership with a group of researchers from the <a href="https://anuquantumoptics.org/" target="_blank" rel="noreferrer noopener">Australian National University’s Quantum Optics Group,</a> has dubbed its new product, ANU QRNG, the first “true” random number generator for smart contracts.&nbsp;



Ten of the 13 blockchains the startup is launching on don’t yet have a random number generator available, the company told Blockworks. Some of those protocols use a random number generator that doesn’t employ quantum technology — meaning their data set is limited, or a “pseudo random number,” in industry speak.&nbsp;



A truly randomized dataset, combined with blockchain technology, allows for a number grouping for the likes of crypto gambling that cannot be manipulated to serve the needs of the house. To produce random numbers now, the company said, startups use what amounts to a &#8220;random&#8221; <a href="https://blockworks.co/news/what-are-seed-phrases">seed phrase</a> that allows for the data set to be predicted — and perhaps taken advantage of — if the holder or a nefarious third party wants to do so. 



“Say we take something simple, like a coin flip, for example,” Ugur Mersinlioglu, product manager at API3, said. “If you have a conflict with a ‘pseudo’ random number, you’re going to notice, at some point, that certain patterns are going to be repetitive…Whereas, if you have a process that practically doesn’t spit out any detectable patterns, you can actually say that this is not capable of [manipulation] by anybody.”



The quantum randomness in this case stems from measuring the random fluctuations in phase and amplitude of an electromagnetic field in a vacuum, according to the <a href="https://qrng.anu.edu.au/contact/api-documentation/" target="_blank" rel="noreferrer noopener">project documentation</a>.



The service is available on blockchains including <a href="https://cms.blockworks.co/?s=Avalanche" target="_blank" rel="noreferrer noopener">Avalanche</a>, <a href="https://cms.blockworks.co/?s=Fantom" target="_blank" rel="noreferrer noopener">Fantom</a>, <a href="https://cms.blockworks.co/?s=Metis" target="_blank" rel="noreferrer noopener">Metis</a>, <a href="https://cms.blockworks.co/?s=Moonbeam" target="_blank" rel="noreferrer noopener">Moonbeam</a>, <a href="https://cms.blockworks.co/?s=Polygon" target="_blank" rel="noreferrer noopener">Polygon</a> and RSK — with plans for additional future integrations.&nbsp;



The company doesn’t make money on the random number generation, instead tapping it as a loss-leader into its other product lines, such as its oracle solutions and data integration services, including a validation pool that relies on staking its native token to function.



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Quantum Mechanics-based Random Number Generator To Enable Blockchain Gambling

Ben Strack

<div id="highlights-block_625efbaff8465" class="highlights">
 <ul>
 <li>By storing carbon credits as digital tokens, they can be more easily tracked and traded</li>
 <li>Companies using blockchains and smart contracts to advance climate change initiatives to become “industry norm,” according to Chainlink Labs</li>
 </ul>
 
</div>



Blockchain technology will play a key role in combating climate change by managing clean energy solutions and enabling enhanced automation, a report by Chainlink Labs and Tecnalia says.



<a href="https://chainlinklabs.com/" target="_blank" rel="noreferrer noopener">Chainlink Labs</a>, which offers open-source blockchain interoperability solutions, and European research institute <a href="https://www.tecnalia.com/en/" target="_blank" rel="noreferrer noopener">Tecnalia</a> posited in a <a href="https://chain.link/resources/managing-climate-change-energy-industry" target="_blank" rel="noreferrer noopener">report</a> Tuesday that the energy industry can make clean energy investments more efficient by leveraging blockchain technologies.  



By tapping blockchains, the power business can better digitize and value clean energy investments, according to the report. That would likely lead to additional capital deployed to green investment opportunities, more transparency and stronger accountability when it comes to meeting climate-friendly commitments, the two companies found.&nbsp;



The report labels “hybrid smart contracts” as the new backend framework necessary for building clean energy solutions. The framework uses blockchains to track and settle multi-party processes and smart contracts to define the rules for involved parties.



It also uses oracles — or interoperability solutions for blockchains built on smart contracts — to integrate data and non-blockchain infrastructure into the contracts.



More than 140 research projects and startups had begun studying, testing and deploying blockchain-based solutions as of 2019 to improve energy industry processes, the report says.



“As more and more companies recognize how blockchains, smart contracts and oracles can advance climate change initiatives, we’ll begin to see a trend that will only grow with time until it becomes an industry norm,” a Chainlink Labs spokesperson told Blockworks.&nbsp;



Among the use cases outlined in the report are tokenized carbon credits, which companies buy to offset emissions. By storing carbon credits as digital tokens, the thinking goes, the tokens can be more easily tracked and traded, and oracles can then issue and audit them.



Oracles can use satellite and remote sensing data to measure the carbon sequestration in a certain region to verify a project’s stated carbon offset before issuing a credit.



Hybrid smart contract system Hyphen, for example, uses Chainlink oracles to bring verified greenhouse gas data on-chain and prove stated corporate climate commitments.



“We can now supply validated real-world measurements to dynamic carbon assets,” Hyphen CEO Miles Austin said in a statement. “This gives confidence to investors, capital markets, banks [and] regulators.”



Like the tokenization of carbon credits, climate bonds and green bonds — fixed income instruments that raise money for environmental projects — can also be tokenized on blockchains.



Ethereum-based climate risk solutions platform <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=3508495-1&amp;h=1682524004&amp;u=https%3A%2F%2Fwww.arbolmarket.com%2Fenergy&amp;a=Arbol" target="_blank" rel="noreferrer noopener">Arbol</a> uses smart contracts to help energy businesses hedge power demand and revenue fluctuations around changing temperatures.



Individuals could also be incentivized to reduce emissions through rewards programs, according to the report. Consumers could be compensated with crypto or NFTs in exchange for meeting the requirements of a smart contract designed to minimize their carbon footprint.



Going forward, clean energy industry leaders must assign researchers to focus on the benefits of blockchain technology and how they can leverage smart contract and oracle technologies before competitors, the Chainlink Labs representative said.



“What they discover will motivate them to act,” the spokesperson added. “And that momentum on an industry-wide level will help facilitate the inflection point we need to realize a more sustainable future.”



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Blockchain Tech Is Key to Combating Climate Change, Report Says

<div id="highlights-block_61b0bd78067c9" class="highlights">
 <ul>
 <li>Schmidt served as Google’s CEO from 2001 to 2011, and now runs a venture firm, Schmidt Futures</li>
 <li>In a statement announcing the appointment, Schmidt praised Chainlink for “unlocking the potential of smart contract platforms and revolutionizing business and society”</li>
 </ul>
 
</div>



Oracle infrastructure provider <a href="https://chainlinklabs.com/" target="_blank" rel="noreferrer noopener">Chainlink Labs</a> has signed Eric Schmidt, the former Google CEO, as a strategic advisor.



The Chainlink Network secures oracle data feeds that are responsible for triggering and securing more than $80 billion worth of value locked, across several blockchains.&nbsp;



Chainlink co-founder Sergey Nazarov, said in a statement, “Eric’s experience and insights around building global software platforms for next-generation innovation will be invaluable as we help developers and institutions usher in a new age of economic fairness and transparency.”



Schmidt served as Google’s CEO from 2001 to 2011, and was at the helm for the company’s 2004 IPO at a valuation of $24 billion. Today the company’s ubiquitous Web2 apps like Gmail, Google Maps, Chrome, and YouTube helped generate a record <a href="https://www.statista.com/statistics/266206/googles-annual-global-revenue/" target="_blank" rel="noreferrer noopener">$181 billion in revenue</a> during 2020.



While phasing out his involvement at Google Schmidt co-founded Schmidt Futures in 2017, <a href="https://schmidtfutures.com/our-method/" target="_blank" rel="noreferrer noopener">which bills itself</a> as a venture facility for public benefit.



<blockquote class="wp-block-quote">“The launch of blockchains and smart contracts has demonstrated tremendous potential for the building of new business models, but it has become clear that one of blockchain’s greatest advantages — a lack of connection to the world outside itself — is also its biggest challenge,” said Schmidt.</blockquote>



A blockchain oracle is critical to the functioning of many smart contracts, particularly when they need to access off-chain data and systems.<a href="https://chain.link/"> </a>Chainlink aggregates such real world data and makes it available to the logic contained in blockchain-based smart contracts.



For example, Chainlink’s collaboration with <a href="https://cloud.google.com/public-datasets" target="_blank" rel="noreferrer noopener">Google Cloud’s Public Datasets Program</a> allows weather data to be directly available to emerging Web3 capital markets, according to <a href="https://medium.com/google-cloud/hedging-against-bad-weather-with-cloud-datasets-and-blockchain-oracles-7ba3e0150304" target="_blank" rel="noreferrer noopener">a blog post</a> published by Google Cloud earlier this year. Data from a National Oceanic and Atmospheric Administration (NOAA) database of weather data, can power smart contract crop insurance, and the two companies have built a proof of concept for an Ethereum testnet.



Chainlink has called itself blockchain agnostic, and <a href="https://www.prnewswire.com/news-releases/chainlink-announces-cross-chain-interoperability-protocol-ccip-301349599.html" target="_blank" rel="noreferrer noopener">announced</a> the<a href="https://urldefense.com/v3/__https://www.prnewswire.com/news-releases/chainlink-announces-cross-chain-interoperability-protocol-ccip-301349599.html__;!!PuLkPvyT3vEAvUES!RAKhHSed1ZZ-o8HhvYyCHboquOWwmcsGZyaTCVbcNVmDbo47L5cTr9ePI2hUK9he3h4$"> </a>Cross-Chain Interoperability Protocol (CCIP), to provide a universal, open standard for developers program actions across multi-blockchain ecosystem.



Schmidt’s appointment is unrelated to his prior work at Google, a Chainlink Labs representative told Blockworks.



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Ex-Google CEO Eric Schmidt Now Advising Chainlink

Sam Reynolds

<div id="highlights-block_61840945d1dea" class="highlights">
 <ul>
 <li>Market data enables DeFi and other financial use cases of the blockchain to thrive. But to get this data on-chain, you need to use an oracle like Chainlink </li>
 <li>Some of the world’s largest telecom companies are involved in Chainlink’s oracle network</li>
 </ul>
 
</div>



Seventy-five billion dollars worth of smart contracts are secured by Chainlink’s oracle pipes, the company said Thursday, marking a significant milestone for the crypto industry’s largest oracle.



Oracles like Chainlink are the way that decentralized applications on the blockchain, such as decentralized finance (DeFi) protocols, obtain data to execute contracts. As many trades are based on things such as the US dollar’s value, Chainlink is the intermediary that allows for this key piece of data to exist on the blockchain. And given that DeFi, as a sector, has over $200 billion in value locked in, there needs to be significant robustness to the network providing it with data.&nbsp;&nbsp;



“Market data in DeFi is just the first area where Chainlink is beginning to secure and trigger massive amounts of smart contract value,” said Sergey Nazarov, co-founder of Chainlink, in a statement.&nbsp;



“As more and more organizations launch Chainlink nodes, we’re seeing all sorts of datasets enter blockchains through Chainlink,” he said. “Chainlink oracles are rapidly moving beyond data delivery and into the world of off-chain computation, meaning the network can provide randomness, automation, privacy, and scalability for smart contracts, expanding what those hybrid smart contracts are able to achieve.”



As a testament to just how important these oracles are to the DeFi industry, Swisscom, one of Switzerland’s largest telecommunications companies, <a href="https://cms.blockworks.co/data-for-defi-switzerlands-swisscom-joins-chainlink-as-node-operator/" target="_blank" rel="noreferrer noopener">announced in August</a> it is joining Chainlink’s network as an oracle harnessing its vast, robust network to facilitate Chainlink’s data streams much like it does for the TradFi industry in Europe. Deutsche Telekom’s T-Systems also participates in a similar fashion. In October, the Associated Press <a href="https://www.ap.org/press-releases/2021/ap-chainlink-to-bring-trusted-data-onto-leading-blockchains" target="_blank" rel="noreferrer noopener">announced</a> that it would provide elections and sports data to Chainlink’s nodes.&nbsp;



Chainlink is the sixteenth largest digital asset by market cap, <a href="https://www.coingecko.com/en/coins/chainlink" target="_blank" rel="noreferrer noopener">according to CoinGecko data</a>, and is currently trading at $30.57, down 3% during the last 24 hours. 



This story was updated for accuracy on November 4, 2021, at 1:17 pm ET.

Chainlink Says $75B Worth of Smart Contracts Secured by Its Network

<div id="highlights-block_610b43eb663bc" class="highlights">
 <ul>
 <li>DeFi relies on real-world data for smart contracts and that’s often validated through Chainlink, one of the world’s largest oracles </li>
 <li>Oracles, data gateways between the real world and the blockchain, are computationally intensive and require secure networks. Swisscom has both. </li>
 </ul>
 
</div>



Swisscom, one of Switzerland’s largest telecommunications companies, announced today that it is joining oracle network Chainlink.&nbsp;



In the blockchain industry, oracles are third-party intermediaries that provide smart contracts and decentralized applications with real-world data that allows for contract execution. Chainlink is one of the market leaders in this space and aggregates price data from multiple oracles to produce what it calls a “consensus value”.



As manipulation of this data could lead to material changes on smart contracts, Chainlink requires a secure network in order to maintain data validity.&nbsp;



In an interview with Blockworks, Sergey Nazarov, the co-founder of Chainlink, explained that for Swisscom this is an <a href="https://cms.blockworks.co/webinars/what-defi-means-for-crypto-market-structure/">infrastructure</a> play to get exposure to the decentralized finance (<a href="https://cms.blockworks.co/the-investors-guide-to-defi/">DeFi</a>) space and broader blockchain industry without having to purchase mining equipment.



After all, Chainlink rewards network participants that can operate at scale and maintain a high level of uptime — something that Swisscom can do by virtue of being a telecom.



“Chainlink is a system that rewards highly reliable node operators,” Nazarov said.&nbsp; “[It allows telecoms to be a] winner doing the things they already do, which is providing high uptime and high security for infrastructure. That&#8217;s the distinction because our system doesn&#8217;t compensate people based on ownership of mining equipment or ownership of tokens.”



T-Systems, a subsidiary of Deutsche Telekom, parent of T-Mobile, also runs Chainlink nodes. Both Swisscom and T-Systems are already large IT service providers for the financial industry in Switzerland and Europe.



Effectively, for the companies, this is the beginning of a shift to the era of decentralized finance by simply replicating what they offer to the traditional finance space.&nbsp;&nbsp;



Swisscom’s digital asset team sees no end in sight to the growth of decentralized financial applications, the company said in a statement.&nbsp;



Nazarov explained that this is a good matchup for telecoms as the Chainlink system doesn’t “compensate people based on ownership of mining equipment or ownership of tokens,” but rather creates a “virtuous cycle” of rewards for data that’s delivered securely.



“If you&#8217;re great at delivering reliable infrastructure, that&#8217;s the model if you want to participate in,” he said.  Chainlink, the twelfth biggest token by market cap, is currently trading at $23.04 down 4.1%, <a href="https://www.coingecko.com/en/coins/chainlink">according to CoinGecko</a>.



Want more investor-focused content on digital assets? <a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Join us</a> September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket. <a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Buy it now</a>.