Coinbase Cloud Joins Chainlink Network as Node Operator

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Coinbase Cloud, which provides blockchain infrastructure for crypto companies, is joining decentralized oracle network provider Chainlink as a node operator as it seeks to help improve the industries underlying the technology.

Infrastructure provider linked to US crypto exchange Coinbase is the latest of several top names to become node operators, including T-Systems Multimedia Solutions, a subsidiary of T-Mobiles parent Deutsche Telekom. Coinbase Clouds’ contributions as a node operator will strengthen the technology, according to Kai Zhao, the group product manager at Coinbase Cloud.

Our participation in Chainlinks Decentralized Oracle Network is a statement of our commitment to the security and reliability of smart contracts, Zhao said in a statement. We believe the online chain is next in line, and we look forward to working with Chainlink to drive that future forward.

Over the past two years, Chainlink has extended its dominance in the crypto industry with high-level integrations across networks, services, and with organizations such as the National Basketball Association, which uses the technology for its dynamic NFTs. .

Chainlink, as the name suggests, is a link between the blockchain and data from the outside world, which is often used to create robust smart contracts that deal with everything from crypto loans to insurance.

Smart contracts by themselves cannot access data outside of the blockchain, so Chainlink helps by gathering data from multiple off-chain sources, called oracles, and returning it to the blockchain. In theory, it’s safer than if only one oracle was called for the data, because they would control everything. If a smart contract requires accurate prices of a cryptocurrency, for example, Chainlink allows its decentralized network of price oracles to find consensus on the current price, which it reports.

But to gather data from these off-chain oracles, Chainlink requires nodes run by individuals or companies to agree on the accuracy of the data before providing it for use by smart contracts.

By joining as a node operator, Coinbase helps improve the underlying infrastructure of blockchain technologies, according to Johann Eid, vice president of Go-To-Market at Chainlink Labs, the company that helps support Chainlinks technology. .

How do you expand the space? You develop the infrastructure, Eid told Fortune. That’s what they’ve been doing for years.

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