{"id":461409,"date":"2021-04-15T21:06:23","date_gmt":"2021-04-15T21:06:23","guid":{"rendered":"https:\/\/wncen.com\/?p=461409"},"modified":"2021-04-15T21:08:43","modified_gmt":"2021-04-15T21:08:43","slug":"how-chainlink-2-0-will-expand-the-reach-for-defi-and-smart-contracts","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/how-chainlink-2-0-will-expand-the-reach-for-defi-and-smart-contracts\/","title":{"rendered":"How Chainlink 2.0 Will Expand The Reach for DeFi and Smart Contracts"},"content":{"rendered":"
Chainlink the Whitepaper for its second iteration. Chainlink 2.0 has been created to allegedly take the \u201cnext steps in the evolution of decentralized oracle networks\u201d.<\/p>\n
With one of the most used applications in DeFi, these protocols need oracles to feed them with off-chain information. In the new iteration, Chainlink could go beyond, as the document claims<\/a>:<\/p>\n We foresee an increasingly expansive role for oracle networks, one in which they complement and enhance existing and new blockchains by providing fast, reliable, and confidentiality-preserving universal connectivity and off-chain computation for smart contracts.<\/p><\/blockquote>\n Chainlink 2.0 will be based on a concept called Decentralized Oracle Networks (DON). Maintained by \u201ca committee of Chainlink nodes\u201d, the platform will be able to support an \u201cunlimited\u201d number of functions.<\/p>\n The DON will be a layer to deploy smart contract interfaces with the capacity to support off-chain computing resources without the intervention of a third party. The Whitepaper says:<\/p>\n Decentralized Oracle Networks can go on to create a decentralized metalayer that enhance smart contracts with highly scalable, confidential, and secure forms of off-chain computation, in addition to the external data that Chainlink already provides today.<\/p><\/blockquote>\n With the above capacities, Chainlink\u2019s team of developers will focus on 7 core areas, as described by the document: Hybrid smart contracts, scaling, confidentiality, trust-minimization, incentive-based security, less complexity, and order fairness for transactions.<\/p>\n Focus on the goal of expanding oracle services beyond a data provider in a current environment with growing demand for oracles, Chainlink 2.0 will enhance its network to:<\/p>\n (…)offer strong trust minimization through a combination of principled cryptoeconomic mechanisms such as staking and carefully conceived guard rails and service-level enforcement on relying main chains.<\/p><\/blockquote>\n The new system will be more flexible, per the Whitepaper, cost-efficient for transactions in terms of gas with a new policy for their \u201cfair ordering\u201d. The outline vision in the document seems to aim towards a \u201cnew architecture\u201d beyond blockchain technology with DONs taking the center stage:<\/p>\n The flexibility of\u00a0 DONs will enhance existing\u00a0 Chainlink services and give rise to many additional smart contract features and applications.\u00a0 Among these is a seamless connection to a wide variety of off-chain systems, decentralized identity creation from existing data, priority channels to help ensure timely delivery of infrastructure-critical transactions, and confidentiality-preserving DeFi instruments.<\/p><\/blockquote>\n Already a strong competitor in DeFi, Chainlink 2.0 seems pegged to cause a commotion with a ripple effect felt across the DeFi sector and for the benefit of the users.<\/p>\n At the time of writing, LINK is trading<\/a> at $42,84 with a 9.2% profit in the 24-chart. In the weekly and monthly chart, LINK has 37% and 56% gains respectively.<\/p>\nWhat are Chainlink\u2019s hybrid smart contracts?<\/strong><\/h2>\n