Orcfax and Chainlink Oracles
Last updated
Last updated
This article is centered on two Cardano oracles namely, Orcfax and Chainlink. What do these oracles do? How do they work? Let’s find it.
A Blockchain oracle is a third-party service built to provide external information for smart contracts. Oracles serve as a bridge between different blockchains and the outside world. Since blockchain networks and smart contracts cannot access off-chain data (data that is outside of the network) they rely on oracles to enable them provide a link between off-chain and on-chain data.
It is necessary to know that oracles are not the data source instead, they act as a layer that queries, verifies, and authenticates external data sources. That brings us to .
Orcfax implements the open-source Cardano Open Oracle Protocol (COOP) and provides Cardano developers with well-structured tools and schemas to consume trustworthy off-chain data in their smart contracts. The goal of this oracle is to collect real-world data from various sources for each data point and is working on the principle of a distributed network of validator nodes to deliver truly decentralized oracle feeds.
With orcfax, all data are archived forever, they are stored on decentralized, lasting storage medium using a standards-compliant archival packaging format that gives permanent access and re-use of this data.
Orcfax is thoroughly auditable, it allows for permanent audit trails (in human readable format) for all data feed activity.
Orcfax was built to easily fetch triangulated data without hurdles, all feed data collected from multiple primary sources. Additionally, Orcfax created and implements the Cardano Open Oracle Protocol as an open standard designed to support and enhance eUTXO publication and also reduce on-chain fees.
The Orcfax oracle is fine-tuned to boost and help Cardano developers as they deliver authentic and accurate oracle data on-chain. Thanks to the Orcfax utility token that enable their members join governance conversations, oracle data publications, and for rewarding node validators.
Chainlink is also a decentralized network of nodes deployed to provide data and information from off-blockchain sources to on-blockchain smart contracts via oracles. Chainlink’s blockchain is hosted on the Ethereum platform, it leverages the proof-of-stake operating protocol. Additionally, it is also an open-source blockchain project, that means anyone can view the project’s code and contribute anywhere around the world.
Chainlink was designed to support decentralized data feeds, meaning it securely collects and process data from many sources for hybrid smart contracts.
Applications such as games that require cryptographically secured randomness can make use of Chainlink. The chainlink smart contract can as well automate critical functions and event-driven tasks for enterprises.
Chainlink was designed to support cross-blockchain interoperability, because that is one of the major problems in the industry. When using chainlink, users can connect blockchain platforms to support the exchange of messages, tokens, and specific actions.
Just so you know, LINk token is the native cryptocurrency of the Chainlink network used to incentivize node operators so they can provide data to smart contracts and pay for the network’s oracle services. LINK can also be bought and sold on cryptocurrency exchanges like other cryptocurrencies.
How Does ChainLink Work?
The Chainlink oracle network comprises of multiple Node operators trustworthy for providing data to smart contracts.
Chainlink oracle is controlled by “Node operators.” These node operators are rewarded with the LINK tokens for providing data to smart contracts. If they keep providing more accurate and reliable data, the node operators will earn more LINK. To this effect, node operators are incentivized to offer high-quality data and help ensure the network’s security and reliability.
In other for smart contract developers and users to access the network’s oracle services, they will need to pay a small fee in LINK. The fees generated is used by Chainlink to compensate the node operators for providing the data and to cover the costs of maintaining the network.
One major advantage of using chainlink is that it undergoes regular security audits, several security measures are also carried out to make sure there’s a smooth flow of communication between blockchains, this protects against hackers and malicious attacks. Another interesting reason why I should root for Chainlink is because it handles many requests from smart contracts, providing fast and reliable responses, making it suitable for high-frequency trading.