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Chainlink: A new privacy-preserving oracle protocol, SNZ Holding as a node operator and Poseidon Network integration

Biweekly update 3d September — 17th September

Development

Github metrics
Developer activity (from Coinlib.io)

DECO is a privacy-preserving oracle protocol. Using cryptographic techniques, it lets users prove facts about their web (TLS) sessions to oracles while hiding privacy-sensitive data. With DECO a user can, for instance, prove to an oracle that:

  • She’s over 18, according to her online U.S. State Department account…without revealing her account password or birthdate (or even her name!) to the oracle.
  • She’s won a bet against another user in a smart contract…without revealing what the bet was.
  • She walked 10,000 steps a day for the past month according to the data on her fitness tracker website…without revealing any other health or personal data.

DECO is the first protocol that supports such uses and also:

  • works with modern TLS versions
  • requires no trusted hardware
  • requires no server-side modifications

Today, vast quantities of private data are locked up in websites, inaccessible by services on the outside. DECO liberates private web data for use in otherwise unachievable applications.

Applications

DECO can make private and public web data accessible to a rich spectrum of applications, for blockchains and traditional (non-blockchain) systems. These include:

  • Decentralized identity, e.g., credential creation from legacy data.
  • Decentralized finance (DeFi), with privacy-preserving smart contracts.
  • Privacy-preserving medical research, in which users relay electronic-health-record data to researchers in a trustworthy but private way.

and many more.

What’s next?

  • Chainlink plans to do an initial PoC of DECO, with a focus on decentralized finance applications such as Mixicles.
  • It plans to release the source code in the near future.

DECO paper

F. Zhang, S. K. D. Maram, H. Malvai, S. Goldfeder, and A. Juels. DECO: Liberating Web Data Using Decentralized Oracles for TLS. 2019. In submission.

Social encounters

Watch @HuxtableJonny’s presentation from the @Chainlink OracleNode at the Web3 Summit in Berlin, where LinkPool staking and recently launched Market was covered.

Mixicles allow DeFi smart contracts to achieve a new level of privacy, giving them much wider usability.

Notably, the company (@chainlink) cooperates with the global interbank data transfer and payment system SWIFT, used by most banks across the world.

As blockchain continues to grow, Oracle Building is excited to work with pioneers like Chainlink to stay ahead and push innovation forward OracleStartup.

Chainlink’s Sergei Nazarov tells how its DeFi solution to privacy Mixicles is breaking new ground in enabling the uptake of public blockchains by the enterprise.

Sergey talks about what he thinks Chainlink is getting right. He says his company’s advantage is in providing flexibility for users to create a custom oracle network that matches specific needs and having a 25-person team focused only on oracles.

Upcoming events:

One of the largest International, high-level and content-based blockchain events that gathering industry vanguards to discuss hot issues.

Date And Time: Mon, Sep 16, 2019, 9:00 AM — Wed, Sep 18, 2019, 5:30 PM CST

Location: W Shanghai-The Bund Shanghai Shanghai, SH 200000 China

Finance

Token holders and the number of transactions (information from Etherscan.io)

Roadmap

Source

Partnerships and team members

About SNZPool

SNZ Holding is a crypto assets capital fund, consulting service, and community builder. SNZPool under SNZ Holding is committed to maintaining the security and stability of each network, offering professional POS services and strongly supporting and contributing to projects and their communities. With profound knowledge, rich experience, and all-encompassing ecosystem resources, SNZ Pool is a professional and reliable POS validator for 20+ projects.

Architecture

SNZ Holding operates most of its servers from the AWS private cloud and combine VPC, load balancing, consistent monitoring, firewall, and other security measures to ensure smooth, secure operation of ChainLink nodes. Below is detailed information on its architecture.

Why Chainlink

SNZ Holding envisions blockchain as a way to restore the original spirits of the Internet and an opportunity to build a better future with protected privacy, validated information, distributed supercomputing, digitized assets and beyond. However, the vision cannot come true until smart contracts realize their full potential and blockchain achieves wide adoption. One of the greatest barriers is the lack of ability to connect with off-chain data. Blockchain is a deterministic system that offers limited factors to trigger smart contract execution. Smart contracts inherently don’t have the ability to get financial asset pricing, IoT, GPS, weather, and other real-life data that is not on the blockchain but necessary for a variety of use cases. To overcome the barrier, oracles are needed.

Oracles bring off-chain data onto the blockchain to trigger smart contracts and allow external systems to get on-chain data. However, using traditional centralized oracles presents a single point of failure. Even if the rest of a smart contract is decentralized on the blockchain, having a single oracle node is subject to the same security and failure risks present in non-blockchain agreements. Therefore, a decentralized oracle system is needed to provide the same level of security and reliability found in a traditional blockchain.

ChainLink has unique strengths. It offers:

Fabrx is launching a Chainlink Node for “If This, Then That” triggers and events.

Chainlink is a decentralized oracle network that enables smart contracts to securely access off-chain data feeds, web APIs, and traditional bank payments. Chainlink is consistently selected as one of the top blockchain technologies by leading independent research firms such as Gartner. It is well known for providing highly secure and reliable oracles to large enterprises (Google, Oracle, and SWIFT) and leading smart contract development teams.

Fabrx is a cloud platform for blockchain and consists of a tribe of builders, entrepreneurs, and growth hackers. They envision the digital future to be open to all and view developers as a crucial player in driving mainstream adoption of Web3 applications. The Fabrx Developer Platform is comprised of many cloud-based functions including enriched API access layers, point-and-click solutions, cross-chain cloud functions, and automated triggers and analysis.

Launching the Chainlink Node enables the Fabrx Team to develop an “If This, Then That” platform devoted to the network. The platform is set up to drive engagement and action through triggers set by users while delivering a varying array of functions to developers (a select few milestones are listed below).

  1. Builders will be able to call smart contract functions through an API call to the Fabrx LINK Node, most likely in the form of a GET request to retrieve information or executable payloads.
  2. Interoperability between smart contracts without having to deploy your own contracts. Developers will have the ability to listen for contract events from the Fabrx LINK Node and execute a receiving payload for other contract events.
  3. Capability to run off-chain functions through the Fabrx LINK Node that will respond to on-chain events. An example would be if the DAI Interest Rate is greater than the USDC Interest Rate, conduct an exchange of USDC to DAI with the lowest fees.

Poseidon Network will use Chainlink’s decentralized oracle network to enable smart contracts secure access to Poseidon’s off-chain computing platform. Chainlink oracles will verify data processed on the Poseidon Network and use it to trigger smart contracts that pay those nodes providing computing resources. Establishing this connection between on-chain and off-chain networks is foundational to the future of smart contracts.

Poseidon Network

Poseidon Network provides decentralized edge solutions aimed to create a worldwide P2P infrastructure, including decentralized CDN, storage, and computing. Users can provide their unused bandwidth and storage from their devices, such as NAS, computers, mobile devices, etc. Poseidon’s platform network collects and re-allocates these resources to users who need them. It utilizes idle resources and allows users to share those resources in exchange for rewards.

The team consists mostly of R&D, IT, and Internet industry members. Our Founder & CEO, Light Lin, established a company called Wretch, which he eventually sold to Yahoo.

During the development process of our decentralized edge product, it was discovered that the combination of a token economy and decentralized architecture could facilitate a more complete and healthy ecosystem.

Why use Chainlink?

Decentralized oracles verify data more securely and efficiently, which helps foster trusted and reliable communication of data between on-chain and off-chain environments. Additionally, their development of threshold signatures reduces the costs of using decentralized oracles at scale.

In addition to confirming the status of network transactions, Ethereum can also handle coded logic in the form of smart contracts.

Take for example:

  • If X occurs, then execute Y.
  • When both X and Y data are stored on the blockchain (i.e., in smart contracts), the contract can be easily executed.
  • However, once X and/or Y reside off-chain, execution gets more complicated.
  • For example, a smart contract that uses node performance data (X) stored on the Poseidon Network to trigger a smart contract (Y) that distributes payment rewards.
  • In this example, the node data (X) is a resource that exists outside the Ethereum blockchain, which increases the difficulty of integrating this data source.

Why is it important to have these features?

QEdge — nodes on the Poseidon Network process data in real-time, which causes several problems. If all these nodes are processing data on-chain using the current blockchain framework, the costs will be extremely high and it will lack efficiency.

Alternatively, if a centralized database will be established as a verification method, it’s also time-consuming and security and efficiency become serious issues.

The best way to solve the above problem is to have a decentralized, secure, and cost-effective data validation service that allows Poseidon data to be computed off-chain but then relayed back on-chain to make payments via API connected oracles.

How will Poseidon Network benefit from using Chainlink?

Chainlink is essential for connecting off-chain data with an on-chain smart contract.

  1. Network users send QQQ (the Poseidon token) to the smart contract to pay for computing power for their applications.
  2. A node on the Poseidon Network sends a request to the smart contract to be paid for services rendered.
  3. The smart contract uses a Chainlink oracle to retrieve and validate work done by the node.
  4. The smart contract receives the data from the oracles confirming valid work.
  5. The smart contract executes and distributes the correct amount of QQQ rewards to the node.

It’s easier and more secure to rely on third-party applications to complete the connection between on and off-chain given the smart contract (solidity) cannot natively support off-chain functionality. The best solution is to use Chainlink — — the leading distributed oracle solution, to leverage existing API infrastructure.

On Sep 10, 2019, aelf will be integrating Chainlink, a decentralized oracle network that provides tamper-proof data for complex smart contracts. The integration uses Chainlink technology to build an oracle for the aelf blockchain (an oracle is a tool that feeds the on-chain smart contracts with “off-chain” data outside its native blockchain). Chainlink oracles will ensure the security and reliability of any data that enters and exits the aelf blockchain — reinforcing what is often considered the ‘weakest’ link when adopting blockchain into an existing network. This will not only allow the smart contracts on aelf to securely connect to data sources and APIs around the world, but also provide connectivity to other networks in the Chainlink ecosystem, such as Ethereum, Google Cloud, Zilliqa and many more.

aelf is a multi-chain network and smart contract platform pioneering blockchain in business. aelf’s blockchain will enable businesses to operate their applications on the public chain domain, or their own private chains, without the hassle of building their own. Within the aelf ecosystem, each application will have its own resources to secure high performance. aelf’s token (ELF) was recently selected by Huobi’s HB10 fund as one of the top 10 most reliable investments based on its well-founded platform. aelf recently announced the results of its initial testnet, which achieved 15,000 transactions per second (TPS). For more information, visit aelf.io

Rumors

No updates.

Social media metrics

Social media activity

The graph above illustrates changes in the number of Chainlink Reddit subscribers and Twitter followers. The information is taken from Coingecko.com.

This report is not financial advice.

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