Chainlink Introduces ‘Data Streams’ to Combat Network Latency and Enhance Decentralized Computing

Chainlink, a leading blockchain data oracle provider, has unveiled its latest product, “Data Streams,” aimed at minimizing network latency. This new offering is currently available for early access on the Arbitrum layer 2 platform, as announced in a press release on Monday.

Delving into Data Streams Chainlink’s Data Streams is engineered to amalgamate low latency market data with automated execution, paving the way for “a new generation of ultra-fast and user-friendly derivatives products.” Essentially, it ensures financial market data is delivered in real-time, without any significant delay.

The innovative product employs a “pull-based” data oracle mechanism. Here, high-frequency market data is consistently available off-chain. Oracle reports are crafted for each block, allowing users to fetch them off-chain and subsequently validate them with their on-chain transactions. This approach contrasts with the conventional push-based method where oracles actively supply data to smart contracts at varying intervals.

By leveraging the pull-based system, Chainlink effectively curtails the latency, which is the time taken for data packets to traverse between two points. This is a pivotal advancement, especially considering the latency issues that often plague distributed networks due to the time taken for message propagation to nodes, leading to transaction synchronization and finalization delays.

Chainlink’s co-founder, Sergey Nazarov, emphasized the significance of this development, stating, “Data Streams not only empowers DeFi protocols to match the execution speeds and user experience of centralized exchanges but achieves this without sacrificing the quintessential Web3 values of transparency, fairness, and decentralized infrastructure.”

Expanding the Horizons of Decentralized Computing In addition to Data Streams, Chainlink also announced the introduction of decentralized computing capabilities, including Functions Beta and Automation 2.0 on its main network.

Chainlink Functions will empower developers to seamlessly integrate decentralized applications with any application programme interface (API). This interface acts as a crucial intermediary, facilitating data transfers across diverse systems.

Furthermore, Chainlink Functions promises to automate high-value tasks at just a fraction of the usual cost, potentially leading to a whopping 90% reduction in gas expenses.

Kemal El Moujahid, the Chief Product Officer at Chainlink Labs, expressed his enthusiasm about these updates, stating, “We are setting a benchmark for developers, enabling them to effortlessly connect diverse Web3 components with any existing system, facilitate seamless data and value transfers across multiple chain ecosystems, and craft new verifiable applications.” It’s worth noting that Chainlink Labs is the primary contributor to Chainlink’s development.

In Conclusion Chainlink’s latest advancements in reducing latency and enhancing decentralized computing signify a monumental leap in the blockchain space, promising a more efficient and user-friendly experience for developers and users alike.

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