Leading data oracle provider Chainlink has announced its successful launch on Arbitrum One — the beta mainnet deployment of layer-two Ethereum scaling solution, Arbitrum.
Announced August 12, the launch will allow developers building on Arbitrum One to access financial market data directly on-chain, providing enhanced functionality to decentralized exchanges, algorithmic stablecoins and other advanced DeFi products on the Arbitrum One network.
Chainlink is now live on @Arbitrum One, providing hundreds of smart contract applications direct access to #Chainlink‘s decentralized services, starting with high speed, low-cost Price Feeds and expanding to more off-chain computations.
— Chainlink – Official Channel (@chainlink) August 12, 2021
Many leading DeFi protocols have already expressed an intention to use Chainlink’s data oracles for their Arbitrum deployments, including Aave, MCDEX, and Tracer DAO. Ed Felten, co-founder of Offchain Labs — the team behind Arbitrum, stated:
“Providing smart contract developers on Arbitrum One with native access to Chainlink’s oracle networks was crucial to ensure all of the smart contract use cases that exist on the Ethereum blockchain can be seamlessly ported over to Arbitrum with next to zero changes.”
While only Chainlink’s USD-denominated price feeds are live currently, the team plans to quickly launch new price and data pairings, noting growing demand for “hybrid on-chain/off-chain smart contracts” in the sporting, gaming and nonfungible token sectors.
Chainlink also plans to launch its Verifiable Random Function on Arbitrum One, enabling provably fair random number creation for games and other applications. Chainlink’s Proof of Reserve service will also launch on Arbitrum One, allowing collateralized assets to be audited and any web API to be called.
Offchain Labs launched Arbitrum One in late May, marking a major milestone in the growth of Ethereum’s layer-two ecosystem. The network has since attracted many leading teams building on Ethereum, including Reddit, Uniswap, and SushiSwap — which this week described Arbitrum as a “credibly neutral” solution unlike rival rollups solutio Optimism, which refused to whitelist the exchange.
Optimism has also made significant recent progress, with Synthetix enabling trading on the layer-two scaling solution two weeks ago.
Ray Schuetz received a Masters Degree in computer science from The University of Texas (Austin). Ray has been working as a full-time blockchain consultant for the past 3 years. In his spare time, Ray enjoys writing for EthereumCryptocurrency.com and other crypto news publications.