After a hectic and frenzied year of activity, development, and frequent security audits, Chainlink finally launched its Off-Chain Reporting (OCR) on the Mainnet. OCR will greatly enhance the effectiveness of how data is aggregated across Chainlink oracles. The update will also vastly improve the efficiency of how data is delivered to smart contracts.
It is estimated that the operating costs will be reduced substantially by up to 90%, and this will allow Chainlink to provide more data to smart contracts in various industries like insurance, gaming, and NFTs, thus expanding growth across various sectors in the DEFI markets.
Developers in the future will be able to leverage newly-formed datasets to create a wider range of financial products.
The Chainlink Network uses Price Feeds, Proof of Reserve, and VRF (Verifiable Randomness) to provide a consistently increasing amount of data. With the improvements in OCR’s scalability, the present trend will grow exponentially. This is because, now, after OCR, smart contract developers will have more access to external data taken from several sources like real-world assets, and Blockchains. Developers of smart contracts will now have the opportunity to explore new industries and unique use cases with more access to data from blockchains and real-world events.
Additionally, OCR will enhance the Chainlink Network in these ways:
- More accuracy, availability, and security for Chainlink users through greater decentralization of oracle networks.
- Higher levels of data accuracy for smart contract applications through the greater frequency of on-chain oracle updates.
- More decentralized participation in oracle services on the Chainlink Network because of cost efficiencies in onboarding new nodes.
- Reducing the load that Chainlink oracle networks place on Blockchain networks, and subsequently lowering on-chain network congestion.
- Rapidly providing data to smart contracts regardless of Blockchain congestion and market volatility made possible by reduced oracle network latency
According to CEO Nazarov, Chainlink provides an essential part of the infrastructure required to service smart contracts. He believes that the faster, people are enabled to build, the faster the industry reaches its target. Chainlink-powered oracle networks will use OCR as a computation framework to process Fair Sequencing Services (FSS) and DECO with better scalability and cost-efficiency. This will allow oracles to increase the scope of oracles in the growing smart contract space by generating zero-knowledge proofs. OCR will also fast-track the scalable future of Chainlink as the world’s leading provider of “highly validated data and trust minimized off-chain computation”. The OCR upgrade is a significant one in Chainlink Network’s history. The upgrade will accelerate the launch of more oracle networks for the DeFi space.
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