Ethereum Classic Labs is excited to announce our collaboration with Chainlink to bring decentralized oracles to Ethereum Classic.
Ethereum Classic & Ethereum do not natively interact with off-chain services due to the underlying consensus mechanisms that maintain specific behavior in the network, particularly determinism. In this regard, blockchains can only process transactions in a deterministic manner using on-chain data.
While this leads to heightened levels of security, it comes with certain limitations, such as not being able to connect with other blockchains or non-blockchain infrastructure. Thus, developers are unable to connect their smart contract applications with market data for DeFi, IoT data for insurance, traditional payment systems for settlement, and more.
Oracles solve this problem by creating a bridge between blockchains and the outside world. Oracles enable this off-chain connectivity for the smart contract by reformatting external connection points (APIs) so that two different software applications are compatible for data exchange. The oracles can then pull data into the smart contract and/or execute actions on external systems based on pre-defined instructions.
Chainlink can give smart contracts access to data providers, web APIs, enterprise systems, cloud providers, IoT devices, payment systems, and other blockchains. Importantly, Chainlink is a proven decentralized oracle network, which allows Ethereum Classic smart contracts to interact with off-chain resources with the same security guarantees as the underlying blockchain. This is critical because smart contracts are only as secure as their weakest component, meaning that a fully decentralized smart contract is potentially insecure if it’s triggered by a centralized oracle.
Chainlink alleviates these concerns by bringing decentralization to both the data source and the data retrieval process. Developers can decentralize the data source by fetching ...