As DeFi applications continue their reign in the cryptocurrency market, the need for a stage-by-stage upgrade, crucial for the advancement of these applications cannot be overemphasized. In this regard, Chainlink, which self-defines as an “oracle network for powering universally connected smart contracts, enabling any blockchain to access to real-world data” has successfully launched its Oracle network upgrade, known as the Off-Chain Reporting (OCR).
What is Off-Chain Reporting (OCR)?
The OCR upgrade is a major milestone as far as scalability on the Chainlink network is concerned. After over a year of backstage work from the network’s team, the OCR’s launch on the mainnet will have a crucial impact on the efficiency of data computing on the network. Operating costs will significantly drop by 90%. This will allow all smart contracts connected to the network to enjoy an unparalleled speed of development.
The benefits of the upgrade was highlighted via an official blogpost, excerpts of which reads ;
“While the Chainlink Network has already been rapidly increasing the amount of data it provides on-chain through the continual rollout of Price Feeds, Proof of Reserve, verifiable randomness (VRF), and more, OCR’s scalability improvements will massively accelerate that trend.”
However, DeFi users have a more impressive reason to celebrate. With the launch of the upgrade comes a 10 times increase in the number of real-world data accessible to smart contract applications. As explained in the blog post, “the most immediate benefit to DeFi and its users will be a 10x increase in the amount of real-world data that can be made available to smart contracts l applications.”
The next wave of DeFi domination is here
Since Ethereum’s introduction of DeFi to the crypto-community, applications built on the network have been in high demand. DeFi tokens have also surged significantly in price value, with leading assets like LINK recording tremendous growth and outperforming other Altcoins, in less than three years of its arrival.
It is safe to say that the first wave of DeFi applications reflects the unimaginable potential that Decentralized financial applications bring to the crypto-space. But with the arrival of the OCR, the DeFi craze is about to shake the industry some more. With the significant increase in on-chain data made available to smart contract developers, there will be a wider range of finance products that will storm the market.
“With OCR, smart contract developers will have greater access to external data across a more diverse set of assets, real-world events, and blockchains, allowing them to service new industries and unique use cases.”
Sectors like decentralized insurance and blockchain-gaming to name a few could record increased advancement in innovation. The future of Chainlink signals a path as promising as many other DeFi applications. It is left to be seen how this industry’s potential is harnessed.