Parachains on the Polkadot network can now access Chainlink’s “wide range of high-quality, time-tested on-chain price feeds.”
“Chainlink Price Feeds are now available as an oracle pallet to all Substrate, Polkadot, & Kusama chains. This gives teams building across the Polkadot ecosystem a standardized, easy-to-integrate, & time-tested oracle solution to support their DeFi apps,” said the developers.
#Chainlink Price Feeds are now available as an oracle pallet to all #Substrate, #Polkadot, & #Kusama chains. This gives teams building across the Polkadot ecosystem a standardized, easy-to-integrate, & time-tested oracle solution to support their DeFi appshttps://t.co/Ak1vqQxlYk
— Chainlink – Official Channel (@chainlink) April 2, 2021
In the crypto world, price oracles are special applications that provide external data—such as current prices of various digital assets—to other blockchain projects. For example, such information is crucial for decentralized finance (DeFi) lending platforms.
The new service was launched in the form of a module (or “pallet”) for the Substrate blockchain framework which includes Polkadot, Kusama, and other independent blockchains built on it. As a result, various parachains now can integrate Chainlink’s price oracles using a simple library.
“Chainlink Price Feeds will allow smart contract applications across the Polkadot ecosystem to access accurate, up-to-date and tamper-proof price reference data for powering new products and markets,” the announcement added.
Notably, parachain developers can choose whether to integrate the oracles’ data feed on a case-by-case basis. This is in contrast to Ethereum, where Chainlink nodes are just constantly adding price data to each block. This way, Substrate-based parachains will be able to save some block space if they don’t actually need the oracles’ data.
Among the main advantages of Chainlink Price Feeds, the developers highlighted the quality of its data, decentralized infrastructure, strong security, and cost-efficiency.
“By [releasing Chainlink Price Feeds pallet], we can rapidly accelerate DeFi development within the Polkadot ecosystem, while maintaining the highest security and data quality requirements to ensure its growing suite of DeFi projects run in a precise, tamperproof and hyper-reliable manner,” Daniel Kochis, head of business development at Chainlink, concluded.