We are excited to announce that Chainlink data feeds are now live on the Zilliqa network.
Chainlink data feeds provide pricing data that is aggregated from many data sources by a decentralised set of independent node operators. These data feeds act as price oracles, allowing builders on the Zilliqa network to access reliable pricing data for tokens from external sources. Chainlink secures around 30% of all DeFi TVL across all the blockchains tracked by DeFillama.
Currently, both the Zilliqa mainnet and testnet now include Chainlink data feeds for ZIL-USD and USDT-USD trading pairs.
The introduction of these data feeds is immensely useful as it enables builders to both create more robust dApps (decentralised applications) as well as port over popular dApps from other EVM networks that are not currently available on Zilliqa.
By adding Chainlink price feeds to Zilliqa, we hope to see more developers building new applications which were not previously possible to deploy on the Zilliqa EVM network.
We encourage developers to check out our tutorial on integrating Chainlink into their dApps and to reach out to the Zilliqa team for additional support on building applications that integrate Chainlink price feeds.
How Chainlink bridges the Zilliqa network to real-world data
Chainlink acts as a bridge between the Zilliqa network and real-world information, allowing smart contracts running on the blockchain to access accurate and trustworthy information from the outside world.
Smart contracts are self-executing programs which run autonomously on the blockchain. They automatically execute when certain conditions are met, and these conditions can be based on data gained from Chainlink data feeds, such as the price change for a specific token.
As smart contracts can natively only read information published on the blockchain, Chainlink offers a way for these programs to access real-world information such as external token prices, weather reports, or even sports scores. You can think of Chainlink as going out into the real world to find this information and make it accessible to smart contracts running on the Zilliqa network.
To do this, Chainlink uses “oracles” – trusted messengers that bring real-world data back to smart contracts running on the blockchain. They ensure that the data they supply is reliable and cannot be tampered with.
In simple terms, Chainlink is a tool that helps smart contracts in the cryptocurrency world get accurate information from the real world through trusted oracles. This is important because many smart contracts depend on real-world data to work correctly, and Chainlink helps ensure they get the right information.
Having Chainlink available on Zilliqa is important for several key reasons:
- Data reliability: Chainlink provides a reliable way to access real-world data. In the world of blockchain and cryptocurrencies, accurate and trustworthy data is crucial. Without Chainlink, smart contracts on a blockchain might rely on potentially inaccurate or manipulated data sources, which could lead to incorrect outcomes or financial losses.
- Decentralisation: Chainlink is designed to be a decentralised oracle network. This means that data is not controlled by a single entity but comes from multiple independent sources (node operators). This decentralisation reduces the risk of a single point of failure or manipulation.
- Versatility: Different blockchain applications require access to various types of data, such as financial market data, weather information, sports scores, and more. Chainlink's flexibility allows it to connect to a wide range of data sources, making it suitable for various use cases.
- Smart contract functionality: Many smart contracts depend on real-world events or conditions to execute. For instance, insurance contracts might pay out based on weather conditions, or financial contracts might depend on the price of a specific asset. Chainlink enables these smart contracts to function as intended by providing them with the necessary data inputs.
- Interoperability: Chainlink can be integrated with different blockchains, not just a single one. This interoperability allows data and smart contracts to move between different blockchain networks, fostering collaboration and expanding capabilities.
- Security: Chainlink's design includes mechanisms for ensuring data security and integrity. It uses cryptographic techniques to verify data authenticity and protect against tampering.
Now that Chainlink price feeds are available to smart contracts on the Zilliqa mainnet and testnet, developers can take advantage of this reliable stream of information to build new and exciting applications that interact with real-world data and changes in token prices beyond assets on the Zilliqa blockchain.
Find out more about Chainlink and how to integrate these features into your decentralised application in our tutorial on the Zilliqa Developer Portal.