Chainlink became the first primary oracle provider by completing the initial integration with a substrate blockchain and, thus, creating a significant milestone to bring Chainlink’s decentralized oracles to the Substrate and Polkadot Ecosystem.
Substrate Parachains can only be formed when Substrate-based chains are integrated with the Polkadot or Kusama ecosystem.
In this article, we will explain Chainlink integration using Substrate and how it impacts the Polkadot Ecosystem –
What is Polkadot?
Polkadot is the first protocol to provide a secure ecosystem for the cross-chain composability of protocols and applications across numerous shards.
In 2016, Polkadot was created by Gavin Wood, Co-founder of Ethereum and creator of Solidity.
Polkadot solves the vital scalability issues in blockchain development by parallelizing the transactions. Polkadot introduces a high governance system that can grow any network rapidly compared to legacy networks. Applications from the decentralized zone, like Games, Finance, and Communications, will flourish in the Polkadot ecosystem.
Kusama is known as a Wild Cousin of the Polkadot Ecosystem. Kusama works as a lower barrier-to-entry network where developers can try any new features or updates of the Polkadot before launching it to the Polkadot ecosystem.
What is Chainlink?
Chainlink is a decentralized oracle network that powers smart contracts as security to access off-chain APIs, data feeds, and bank payments. Gartner, an independent research firm, has consistently selected Chainlink as the leading blockchain technology. Chainlink is known for providing decentralized oracles which are secure and reliable to large enterprises such as Google, SWIFT, and Oracle. And major smart contract teams such as Synthetix, Polkadot/Substrate, Conflux, OpenLaw, Etherisc, Aave, Loopring, and many others.
What is Substrate?
Parity Technologies have created the framework of Substrate for blockchain development. The Substrate provides the maximum flexibility, ease of development, and modular architecture for blockchain development.
The projects can access advanced blockchain technology using Substrate like forkless upgrades and lockable consensus. Moreover, Substrate-based chains can connect with the Polkadot ecosystem for interoperability and security. The projects can start building on the Substrate to decrease expense and development time now and in the future.
Chainlink Integration using Substrate –
The substrate blockchain will be the first blockchain that Chainlink will support outside of Ethereum. The Oracle provider by Chainlink will be for all substrate-based chains and the Polkadot ecosystem.
Polkadot developers can use Chainlink’s decentralized oracle to run their smart contracts securely and reliably for their inputs and outputs and avoid significant pitfalls for running their own oracles. The major pitfalls like additional expenses, long-time delays, and security flaws.
The problem with blockchain-based smart contracts is their limited ability to integrate real-world data to trigger blockchain transactions. With Oracle’s help, the smart contracts’ limited ability can be solved by fetching inputs via APIs and external data feeds outside the blockchain. The outputs are triggered on external systems of the off-chain world.
Availability of Oracle Pallet by Chainlink –
The Polkadot ecosystem is rolling out new essential features for the ease of developers, like Substrate pallets, consensus mechanism, and networking layers which will help to create customizable blockchain applications for the Polkadot.
Since the Chainlink integration, there have been vast developments in the Polkadot ecosystem. Because of the Chainlink integration, Chainlink is building extensive collections of on-chains Price Feeds, which will be available as a Substrate Oracle Pallet.
The smart contracts applications across the Polkadot ecosystem can access Chainlink’s Price Feeds, which will provide accurate and up-to-date data for powering new markets and products.
Blockchain infrastructure company like Zeeve can help with the Polkadot ecosystem.
Other Pallets integrated with parachains can also access Chainlink’s Price Feeds which open up new functionality for the parachain teams.
Chainlink Integration with Moonbeam –
Chainlink, a decentralized oracle network integrated with the Moonbeam, i.e., a smart contract parachain on Polkadot for one of its services named – Chainlink Price Feeds, will provide data to the developers.
The data will help Decentralized Finance (DeFi) developers to access price information compiled from different exchanges, which will bring price accuracy to the Decentralized Applications (DApps)
As per Derek Yoo, the founder of Moonbeam, accessing off-chain pricing holds many benefits to Decentralized Finance (DeFi) and can help developers within their platform.
