- Polkadot has integrated Chainlink’s oracle technology in a proof of concept within the web application framework Substrate.
- Chainlink will become the primary oracle provider for all Substrate based blockchains and the Polkadot network.
Polkadot, one of the most hyped projects from the Initial Coin Offering (ICO) phase in 2017, will integrate Chainlink‘s oracle technology. This makes Polkadot the first non-Ethereum-based blockchain project to integrate Chainlink. Although Polkadot has not yet launched its mainnet, the project, founded by Ethereum co-founder and Solidity inventor Gavin Wood, is one of the most promising projects on the market with the promise of blockchain interoperability and a decentralized Web 3.0.
As described in the Polkadot blog post, Chainlink was integrated into the web application framework Substrate, a tool for building distributed or decentralized systems. It will be the first oracle-based solution and thus, according to the blog post, “primary oracle provider for all Substrate-based chains and eventually the entire Polkadot network”. The first step in this process was the integration of Chainlink into a Substrate-based blockchain:
Chainlink has completed an initial integration with a Substrate-based blockchain, marking a major milestone in the mission to bring Chainlink’s market-leading network of decentralized oracles to the Substrate chain ecosystem and Polkadot.
Although the mainnet is not yet operational, it is currently possible to develop blockchains with Substrates that can connect to Polkadot with the launch. According to Polkadot, the first integration into Substrate will open a way to integrate Chainlink with a special parachain after the launch of mainnet. Before the launch of the parachain in Polkadot, Chainlink will provide a parachain on Kusama.
Parachains are independent shards within a blockchain that, together with other parachains in an interoperable network, are able to read data from the Chainlink shard to run distributed applications (dApps). Applications and smart contracts based on the Polkadot protocol will thus be able to access Chainlink’s oracles to access “virtually any external real resource”:
Oracles solve this problem for smart contracts by fetching inputs from outside the blockchain (via external data feeds and APIs) and triggering outputs on external systems by signing claims about the state of the off-chain world, effectively making smart contracts externally aware and connected.
To accelerate development, Parity Technologies, the lead development team for Polkadot and Substrates, has “contributed significant code to Chainlink’s open source repository at Github to accelerate integration”. According to Polkadot, the integration from Chainlink’s oracles will greatly expand Polkadot’s use cases:
For example, a parachain optimized for self-sovereign identity would be able to reliably query off-chain data such as identity-based digital signatures or verifiable claims using Chainlink’s oracles.
Another use case is described by the blog post concerning Polkadot-based decentralized financial (DeFi) applications:
Similarly, a decentralized payments network built with Substrate on a Polkadot parachain could securely access real-world payment settlements and invoicing data via Chainlink’s oracle network. On a Polkadot parachain optimized for decentralized finance (DeFi), smart contracts and DApps would be able to leverage decentralized pricing feeds for crypto-native derivatives, real-world data for decentralized prediction markets, or stock market price feeds for tokenized equities trading.
The teams currently working on the proof of concept will now prepare the launch of Chainlink’s parachain, first in the Kusama network and then in the Polkadot network.
Last Updated on 26 February, 2020
Chainlink will become the primary oracle provider for all Substrate based […]