Decentralized oracle solution Chainlink reaches Bitcoin via RSK smart contract ecosystem 

  • Oracle solution Chainlink has been introduced to Bitcoin’s smart contract network RSK after teaming up with IOV Labs.
  • The decentralized finance movement is still largely geared around Ethereum, but projects like RSK are on a mission to change that.

The move paves the way for RSK developers to access external price and data feeds and to implement them into dApps such as DEXs, wallets, and lending platforms. It also extends the capabilities of Chainlink, from the Ethereum blockchain to the Bitcoin-anchored layer two networks powered by IOV Labs. As a result, applications can be built on RSK that utilize decentralized and tamper-proof oracles.

IOV Labs has been on a mission to drive greater adoption of its RSK and RIF framework through provisioning an array of tools that make it easier to deploy dApps. The introduction of the leading oracle network, Chainlink, which has now been deployed on the RSK and RIF testnet, is a major step in realizing this goal. Chainlink enables data pertaining to market prices, temperature, binary conditions, payments, and a host of other variables to be incorporated into decentralized applications, significantly extending their capabilities.

“The synergies between Chainlink and IOV Labs are extensive, and we look forward to exploring ways to enhance the utility of RSK and RIF by building upon Chainlink’s best-in-class oracle service,” said Julian Rodriguez, Head of RIF Gateways. Crypto projects including Synthetix and Loopring, and tech companies like Google make use of Chainlink’s oracle service to obtain reliable data feeds from external environments.

“The blockchain space has long wanted to build smart contracts anchored to the security of the Bitcoin blockchain,” said Daniel Kochis, Head of Chainlink Business Development. “We’re excited to collaborate with the IOV Labs team making that a reality by providing RSK with secure and reliable oracles to empower more useful smart contract applications that fully integrate with widely used data resources and systems.”

Bringing Defi to new networks

The decentralized finance movement is still largely geared around Ethereum, but projects like RSK are on a mission to change that. dApps built on RSK can enable users to lend, borrow and trade BTC, as well as to earn interest on their holdings. They can also be used for stablecoin collateralization and issuance, weighted against BTC. Because Bitcoin’s security model, liquidity, and adoption is greater than that of any other crypto network, RSK is built on solid ground. The layer two smart contract protocol adds functionality to Bitcoin, opening the door for creating dApps with the same powers as those operating on Ethereum.

To demonstrate the utility of RSK, IOV Labs has been developing consumer applications that it can integrate into Taringa, the Latin American social network it acquired last year. Through introducing crypto assets into a familiar environment, IOV Labs intends to boost mainstream adoption, and to empower social network users with financial tools for payments, saving, and lending.

Defi market passes new milestone

The total value locked into defi protocols has now exceeded $7 billion, as money and innovation flood into the industry. Token-holders are flocking to supply liquidity to decentralized trading protocols, while “yield farmers” are bootstrapping lending protocols, earning a return for locking up ETH, ERC20 tokens and stablecoins. Prying some of that business away from Ethereum and into other smart contract ecosystems, where fees are lower and settlement faster, is a challenge that IOV Labs and other layer two developers have embraced.

The amount of bitcoin locked on the Ethereum network has now passed 12,000 BTC, following an explosion in WBTC issuance. As a result, the Ethereum and Bitcoin networks have converged, with each offering features more synonymous with the other. In addition to trying to lure developers away from Ethereum to its Bitcoin smart contract network, IOV Labs has taken aim at Lightning Network with its release of Lumino Payments Network. The smart contract-equipped network facilitates cheap and fast payments at scale, making it ideal for apps and platforms that require micro payments.

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About Author

Jake Simmons

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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