Kadena is collaborating with Chainlink to deliver hybrid blockchain oracle Integration. They will deploy Chainlink’s oracles for tamper-proof on-chain data feeds on Kadena’s proof-of-work public blockchain. Chainlink’s network of independent and verified node operators will perform decentralised computations to improve the accuracy of external data before it is committed to Kadena’s blockchain.
Kadena will leverage its scalability and low fees to increase the frequency and accuracy of external data available on the network. The desired outcome will be a cost-efficient and high-quality platform for DeFi and other decentralised applications.
“We’re excited to augment the value created through Kadena’s unique hybrid blockchain by bringing secure and reliable data feeds on-chain via Chainlink decentralized oracle networks. With this access to high-quality credential API data via Chainlink oracles, the Kadena ecosystem can begin developing next-generation smart contracts that depend on real-world data,” said Sergey Nazarov, Chainlink Co-Founder.
The Kadena / Chainlink collaboration
Chainlink and Kadena are working together to integrate:
- Chainlink’s decentralised oracle network
- Kadena’s scalable layer-1 proof-of-work public blockchain.
According to both companies, this will be an industry first in deploying oracles to a public/private hybrid blockchain platform. Enterprises and entrepreneurs in the Kadena ecosystem will be able to use Chainlink oracles to create end-to-end Pact smart contracts using Chainlink’s large collection of pre-made inputs and outputs.
For example, Kadena developers will benefit from Chainlink’s quality data by:
- building Price Reference Contracts for market prices
- leveraging external adapter technology for off-chain access to credentialed APIs and legacy systems.
In addition, Chainlink provides strong security and reliability guarantees via decentralisation. Multiple independent oracles and data sources can aggregate to:
- protect against single points of failure
- act as a sole arbiter of truth.
“When Sergey and I met to talk through the integration between Chainlink and Kadena, we were both immediately excited about what we can accomplish together,” said Stuart Popejoy, Kadena Co-Founder.
“Kadena’s Pact smart contract language is becoming the standard with its powerful features such as allowing for multi-sig transactions and formal verification. Combined with the Kadena public blockchain’s scalability, throughput, and low gas costs, we’re enabling high-quality financial market data in a way previously unseen on crypto platforms. Chainlink’s decentralized oracle network adds further security and value to developing and executing smart contracts. In choosing Chainlink, we are collaborating with a project that is an industry leader for their oracle expertise.”
What Chainlink brings to Kadena
Kadena completed its mainnet launch early in 2020. Now Kadena sees value in adding Chainlink oracles for production-ready smart contracts. All parties involved will obtain greater security and reliability because they can exploit smart contract transactions which consume accurate, real-time data feeds.
Chainlink has extensive expertise in developing oracle solutions, evidenced by its ongoing work with several technology leaders (including Google, Oracle and Polkadot). At the same time, Kadena has an agreement with Web3 Foundation to examine how to implement Kadena’s Pact smart contract language on Polkadot.
Kadena has already identified use cases where the live data accuracy of Chainlink’s oracles will service key functionality for on-chain applications. The initial implementation will likely be a KDA price oracle feed, available to dApp developers and exchanges. When Kadena’s KDA token receives a major listing, currently projected for 2Q or 3Q 2020, reliable fiat-denominated price feeds for KDA will be important for enterprises wanting to pay in traditional currencies.
Dependable and instantaneous market data will also be a requirement for launching many decentralised and traditional finance applications, such as with Kadena’s ongoing collaboration with $3 billion asset manager USCF. Furthermore, Kadena offer a tool for addressing the COVID-19 pandemic. This would use Chainlink oracles to validate coronavirus testing kits and test results.
“Terminals provide an essential service in asset management with real-time market data. As USCF works with Kadena to identify opportunities to leverage blockchain for investments, we see merit in having credible oracles provide consolidated data feeds on-chain.
“Kadena’s latest news is another step forward in showing the full value of hybrid blockchain.” – Nicholas Gerber, CEO of Concierge (USCF’s parent company).
Enterprise Times: what does this mean
Chainlink is a decentralised oracle network: it enables smart contracts securely to access off-chain data feeds, web APIs and traditional bank payments. Among its users are Google, Oracle and SWIFT plus smart contract developers like Polkadot/Substrate, Synthetix, Loopring, Aave, OpenLaw, and Conflux.
Kadena provides a hybrid blockchain platform which it claims addresses the scaling challenges of Bitcoin and the security issues of Ethereum. Kadena’s founders created JP Morgan’s first blockchain and worked at the US Securities and Exchange Commission. In Kadena’s view, for blockchain technology to go mainstream, credible projects must commit to cooperating on interoperability between ecosystems.
The technologies are complementary, which explains the collaboration. With deployment of oracles to a public/private hybrid blockchain platform, both companies envisage a significant acceleration of decentralised finance/on-chain trading:
- Chainlink’s LINK token provides incentives to data sources
- Kadena delivers scalability and on-chain processes that are multi-sig.
With Chainlink, Kadena enables a multi-provider ecosystem providing resilient market-data. If one provider goes down, the entire system is not at risk (which has happened multiple times on Ethereum). And Chainlink adds to other partner successes (Celsius Network, QANplatform).
Yet the most compelling summary came from Will Martino, the co-founder of Kadena. When discussing the Kadena/Chainlink combination with Enterprise Times, he put it like this: “Chainlink brings its deep understanding of financial data and its robust data oracle to Kadena’s scalable public blockchain. People have been asking for this for years. Now they can have it.”