Chainlink oracles go live on Layer-2 Ethereum scaling solution Optimism

Layer-2 Ethereum scaling solution Optimism has announced that Chainlink oracles are running live on Optimistic Ethereum.

The integration will enable developers on Optimism to build DeFi apps using Chainlink’s low-cost Price Feeds with minimal changes to code.

Chainlink Price Feeds will provide dApps built on Optimism with high-quality, tamper-proof data feeds on-chain for various asset types like cryptocurrencies, stablecoins, FX rates, commodities and more.

On Optimism, the feeds are native to OΞ (Optimistic Ethereum), meaning they run at the underlying speed and cost of OΞ.  This enables developers to better scale their projects using inexpensive, low latency price updates in near real-time which, according to Optimism, will unlock “a whole new class of advanced smart contract applications on Optimism’s L2 that were previously impossible on L1″.

DeFi platforms Synthetix and Uniswap, which are currently in the alpha version on Optimism, have already integrated Chainlink Price Feeds on Optimism.

Optimism is a Layer-2 rollup solution, which handles transactions “off chain” on an external Layer-2 network – in this case Optimism – and then posts the transaction data on a Layer-1 network like the Ethereum mainnet. Often referred to as ‘optimistic rollups’, layer-2 solutions like Optimism work under the assumption that transactions are “honest” and do not require further input to prove their validity.

Decentralised bots

Alongside Price Feeds, Optimism intends to use the full array of Chainlink services in the future, including Chainlink Verifiable Random Function (VRF) to provide on-chain gaming dApps and NFTs provably fair random numbers and Chainlink Keepers. It also includes decentralised bots that can automate smart contract functions and retrieve external data and off-chain computation from any API.

 

Through the integration of the price feeds, Optimism believes the development will lead to an influx of projects building on the network, saying “we envision that this combination of scalability, security, and external connectivity will unlock a massive wave of new and innovative applications on Optimism”.

Jing Wang – co-founder and CEO of Optimism – also believes the integration will lead to more developers moving their projects to the Layer-2 solution due to the minimal changes required.

“Chainlink Price Feeds provide Optimistic developers with a seamless plug-n-play solution for getting high-quality data and time-tested oracles within their DeFi applications,” said Wang.

“Combined with our scalable infrastructure, developers can launch scalable, externally connected dApps with minimal changes to their L1 code and without having to sacrifice the robust underlying security of Ethereum L1.”

Chainlink also provides price feeds for rival Layer 2 solution Arbitrum, which launched on August 31.

Additionally, Chainlink provides the price feeds for many Layer-1 solutions looking to rival Ethereum, including Solana, Fantom and Avalanche alongside an array of leading DeFi platforms including Aave and SushiSwap.

Chainlink now currently has more than 750 integrations and remains an integral part of the burgeoning DeFi and blockchain ecosystems.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.