Chainlink Opens Oracle Module to All Substrate, Polkadot, and Kusama Chains

To support these teams, teams in the Polkadot ecosystem continue to launch new core elements , such as network layers, consensus algorithms, and Substrate pallets (note: development modules in Substrate), enabling developers to easily create customizable blockchain applications for the Polkadot ecosystem.

Polkadot developers need powerful tools to fully exploit the full potential of the Polkadot multi-chain environment. In order to achieve a fully functional infrastructure for the Polkadot ecosystem, it is necessary to integrate reliable and flexible oracle solutions to access secure price reference data across any parachain.

Since the last update, significant development work has been completed on the Polkadot-Chainlink integration, culminating in Chainlink opening up its extensive collection of on-chain Price Feeds as a Substrate Oracle pallet. Chainlink Price Feeds will enable smart contract applications across the Polkadot ecosystem to access accurate, up-to-date, and tamper-proof price reference data, powering new products and markets. Importantly, Chainlink Price Feeds can also be accessed through other pallets integrated into specific parachains, unlocking powerful new capabilities for parachain teams.

Now, Chainlink has been directly integrated as a pallet, giving teams in the Polkadot ecosystem (especially those building parachains based on the "Substrate" framework) a direct way to access high-quality external market data. Now, non-native parachain teams and applications building projects on top of parachains can integrate the Chainlink Oracle pallet as a Runtime Module using any supported smart contract language.

By proposing an on-chain Runtime upgrade that is voted on by the community, local teams can add the Chainlink oracle pallet to the Runtime, either before it connects to the Relay Chain or after it connects as a parachain. Both methods allow developers to leverage the Chainlink Price Feed with limited technical effort. The integration supports many smart contract applications and Parachain pallets that request access to the Chainlink Price Feed in the Polkadot environment.

How Chainlink Price Feeds Help Ensure Polkadot’s Multichain Environment

Chainlink is a decentralized oracle network that securely and reliably connects smart contracts to real-world data and computation outside of their native blockchain. Billions of dollars in smart contract value are already secured by the Chainlink oracle network, and leading DeFi, Insurance, NFT, and Gaming projects rely on the chain.

While Chainlink’s flexibility will be used to access a variety of external data and off-chain computations, the initial focus will be on bringing Chainlink’s growing options for data feeds to all parachains in a standard, easy-to-integrate manner. Some of the unique benefits of these Chainlink Price Feeds include:

• High-quality data - Node operators source data from numerous high-quality data aggregators. As a result, Chainlink Price Feeds represent volume-adjusted aggregates from hundreds of exchanges, ensuring accurate price data and broad market coverage, making it resilient to API downtime or incorrect/manipulated data (e.g. protecting it from flash loans).

• Decentralized Infrastructure - Chainlink Price Feeds are decentralized at the data source and oracle node level, creating multiple layers of redundancy to ensure that only the latest, high-quality data is broadcast on-chain.

• Secure Nodes - Chainlink nodes are operated by a large number of independent professional DevOps teams, both of which have been security-vetted and have a long, on-chain verifiable history of providing high uptime under all network conditions.

• Cost Efficiency - The Chainlink Price Feed operates on a shared cost model where any number of teams can use and fund the same oracle network, meaning they can access Chainlink’s data and security at a fraction of the total cost.

Enabling scalable DeFi applications on Polkadot using Chainlink oracles

By integrating Chainlink Price Feeds as an oracle pallet available to the Polkadot ecosystem, developers can build high-performance DeFi applications on a variety of parachains using a rapidly expanding collection of on-chain datasets around cryptocurrencies, commodities, foreign exchange rates, and other asset classes.

Smart contract applications and other pallets running across any parachain can use Chainlink Price Feeds to perform a variety of functions, including:

• Deploy cross-chain DeFi contracts.

• A strong liquidation mechanism ensures the solvency of the platform and the safety of user funds.

• Confirm that various stablecoins, cross-chain assets, and tokenized assets are fully collateralized by their off-chain reserves.

• The supply mechanism is triggered based on some reference asset.

• Automatically execute on-chain execution policies based on external network conditions.

Now, externally connected smart contract application developers can build on Substrate while leveraging Chainlink Price Feeds. This integration with the Chainlink Network will be further expanded to bring a wider range of data feeds and off-chain computations to Polkadot developers in the future.

“By integrating Chainlink’s widely adopted price feeds directly as an oracle pallet, developers in the Polkadot ecosystem have access to the highly secure and reliable price reference data needed to create the next generation of high-performance decentralized applications. Chainlink provides a high-quality oracle solution by combining high-quality data with the security of a strong oracle network, which means that the parachains and dApps they support do not need to spend time building oracle infrastructure for their applications from scratch .”

— Peter Mauric, Director of Public Affairs, Parity Technologies

“We are excited to empower developers of all parachains by providing them with a standardized, easy-to-integrate oracle solution that gives them access to a wide variety of high-quality, time-tested, affordable on-chain price feeds. By doing so, 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 operate in a precise, tamper-proof, and highly reliable manner.”

— Daniel Kochis, Head of Business Development at Chainlink

About Chainlink

Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data feeds from other blockchains and real-world data. Managed by a global decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer contract model. Currently, its network has secured billions of dollars in value for smart contracts in ecosystems such as decentralized finance (DeFi), insurance, and gaming.

Hundreds of organizations trust Chainlink to deliver definitive facts through secure, reliable data feeds.