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Key takeaways
Calling on its experience at Maker and collaborating with Centrifuge, Chronicle Labs is exploring solutions for providing reliable, accurate, and tamper-proof information on real-world assets (RWAs) to blockchains, ensuring data security, regulatory compliance, and fostering trust in the DeFi sector.
Chronicle Labs’ Scribe promises heightened security and efficient data transfer. Its innovative approach has led to over a 60% reduction in gas usage during testing, making it a pivotal advancement in the Oracle domain and bringing the cost of Oracle operations down considerably.
Oracles are crucial in transmitting data on-chain, underpinning the decentralized finance (DeFi) revolution. Yet, despite their importance in DeFi, the growth in Oracle technology has remained relatively static.
The efficiency of on-chain Oracles, particularly on platforms like Ethereum, is constrained. This limitation impacts DeFi’s potential. Many Oracles are not easily accessible, often hampered by costs or the protocol team’s availability, and also tend to be lacking in true transparency and decentralization, both core to DeFi principles. Chronicle Protocol, in this context, presents a novel solution to these prevalent on-chain issues.
An artistic interpretation of Chronicle Protocol Source: Chronicle Labs
In this investor’s guide, we’ll dive into what Oracles are, as well as the history of Chonicle Protocol and how it’s looking to spark the next generation of DeFi growth with its launch.
Blockchain Oracles function as secured passageways, linking blockchains to the external world and different blockchains to each other. They transfer data, ensuring its validity before letting it pass through. While Oracles don’t generate the data, they act as intermediaries, confirming its authenticity and moving it from its origin to the end-user. This data might encompass price details, voting outcomes, or sports event results.
Without these on-chain Oracles, blockchain applications would be akin to secluded islands, restricted to data from their own network. Such limitations would constrict the potential applications of blockchain technology. Hence, on-chain Oracles play a crucial role in the Web3 framework, acting as enablers for all the wonderfully creative ideas this industry has.
An illustration of Ancient Greek Oracle Temples connected by a network
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