Access to high-quality, decentralized and reliable market data will allow developers to build a variety of applications on Linea.
Linea is excited to announce that Chainlink Data Feeds, a decentralized data solution for decentralized finance (DeFi) and beyond, are now live on the Layer 2 network. Developers can now build highly secure applications on Linea using decentralized, hyper-reliable market data, as well as other data types. This will help more users access a feature-rich application ecosystem.
Chainlink is a decentralized computing platform that enables blockchains to connect with external data resources such as weather events, economic data, outcomes of sports events, and market data such as forex, commodities, and cryptocurrencies.
Specifically, the native integration of Chainlink Data Feeds on Linea helps ecosystem developers leverage the scalability inherent to Linea’s Ethereum-based zk-rollup to create high-throughput web3 protocols underpinned by Chainlink’s industry-leading oracle security and reliability.
Chainlink Data Feeds are on-chain reference contracts powered by multiple independent decentralized oracle networks (DONs). Think of Data Feeds as online reference books that source data from multiple independent data providers. Each DON is Sybil-resistant, and is run by a group of high-quality node operators.
For Chainlink Price Feeds (the largest subset of Chainlink Data Feeds), each individual DON sources data from high-quality data aggregators to generate accurate market prices. Chainlink Data Feeds feature wide market coverage, premium data, and secure and reliable infrastructure. Due to their proven design and multiple layers of security, Chainlink Data Feeds have helped secure tens of billions of dollars in on-chain value across DeFi to date.
Through the use of Chainlink Data Feeds on Linea, developers can create advanced applications that offer users the security guarantees to confidently use web3 applications. In turn, as more users onboard and deploy capital, the applications can scale seamlessly for the long term as their total value locked (TVL) grows.
High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s gathered from hundreds of exchanges, weighted by liquidity depth, and cleaned from outliers and suspicious volumes.
Reliable Nodes — Chainlink Data Feeds are secured by a large collection of independent, security-reviewed oracle nodes run by leading enterprises, data providers, and DevOps teams who have a strong on-chain history of performance even during extreme network congestion.
Decentralized Infrastructure — Chainlink Data Feeds are decentralized at the data source, oracle node, and network levels, eliminating any central point of failure in the sourcing and delivery of external data.
Transparent Performance — Chainlink Data Feeds can be monitored by anyone in real-time. This allows users to verify the data triggering their contract.
Economy of Scale—Chainlink Data Feeds benefit from an economy of scale effect, where increasing adoption allows multiple projects to collectively use and fund shared oracle networks to fetch commonly required datasets. For Chainlink Price Feeds, this helps DeFi projects get premium data quality and robust oracle security for a lower total cost.
“It’s abundantly clear that secure and reliable access to offchain data is key to unlocking a rich application ecosystem for any blockchain, which is why we chose to integrate Chainlink Data Feeds,” stated Simon Morris, Chief Strategy Officer at Consensys. “Chainlink Data Feeds are the most adopted data solution in web3, and we’re excited to see what Linea developers can build with seamless access to secure and accurate offchain data.”
The Chainlink Data Feeds provide ultra-reliable information by utilizing three layers of aggregation:
First, premium data providers aggregate raw price data from many centralized and decentralized exchanges. This data is organized to account for factors such as time, volume, and any outliers.
Next, independent Chainlink nodes fetch market price data from various data providers and combine the results into an aggregated value.
Lastly, multiple Chainlink nodes aggregate their results together off-chain to generate a tamper-resistant oracle report, which is made available to smart contracts.
DeFi – Developers can use the high-quality market data from Chainlink Data Feeds to inform various DeFi applications on Linea including those providing lending & borrowing services, stablecoins, and derivatives. The ultra-secure and reliable information provided by Chainlink Data Feeds ensure that all financial calculations made are accurate.
Gaming and NFTs – Chainlink Data Feeds help create a fair marketplace for NFTs, and it can also help gamers have an enhanced experience by creating a more transparent valuation mechanism for in-game assets.
Tokenization of Assets – Developers can use Chainlink Data Feeds to track prices of real-world assets on Linea, and thus tokenize those assets on blockchain. This helps gain access to real-world assets and the liquidity that they bring, without the need to interact with intermediaries such as banks, brokers, asset managers etc.
Start building with Chainlink Data Feeds on Linea today!