In a big development for the Chainlink community, the oracle service provider has collaborated with the World Economic Forum (WEF) to establish new Industry Oracle Standards connecting blockchain and legacy systems.
Today, the need to connect legacy systems with blockchain platforms is much higher than ever before. Chainlink, the decentralized oracle network provides an easy-to-use abstraction layer that can connect traditional digital infrastructure with blockchain environments.
Thus, Chainlink facilitates developers to connect any blockchain platforms with high-quality data services while introducing a fairer model of smart contracts. The joint paper published by WEF and Chainlink proposes an open-source framework that connects legacy systems with distributed Ledger Technology (DLT) using Chianlink’s decentralized oracle networks.
Dubbed as the “Bridging the Governance Gap: Interoperability for Blockchain and Legacy Systems”, the paper seeks to establish an industry standard for the use of Oracles. Sheila Warren, Head of Data, Blockchain and Digital Assets at WEF said:
“Organizations have long recognized the importance of connecting blockchain systems to legacy infrastructure and data sources. This framework is an important step in providing concrete guidance to ensure that stakeholders can effectively evaluate opportunities, challenges, and potential actions to facilitate much-needed interoperability that can help unlock the benefits of distributed ledger technologies.”
A Marriage Between Blockchain and Legacy Systems
While blockchain technology is making faster inroads in almost every industry, overnight switching isn’t possible. Also. some legacy systems developed by big corporations and government institutions have a robust infrastructure. The better way is to bring the two systems together.
The paper recommends large businesses and the government IT to integrate with decentralized oracle networks. These decentralized oracles will take care of security, data integrity, as well as data delivery from legacy systems to blockchain platforms. Chainlink Co-founder Sergey Nazarov said:
“The paper highlights some of the key considerations for both financial institutions and government IT initiatives, demonstrating their ability to become “blockchain-enabled” using their existing IT infrastructure with the help of a blockchain oracle such as Chainlink. The ability to provide hyper-reliability in the connection between existing systems and next-generation smart contracts is what Chainlink has already been doing for some of the world’s leading enterprises for many years now”.
Due to its unique services, Chainlink’s popularity has skyrocketed over the last year. Its native cryptocurrency LINK has climbed up the ranks to become the seventh most-valued cryptocurrency today with a market cap of $4.9 billion. Currently, at $12.44, the price of the LINK token has surged 600% year-to-date.
Chainlink oracles find a major application use in the rapidly emerging decentralized finance (DeFi) markets, the decentralized gaming ecosystems, as well as the decentralized insurance sector.