The cryptocurrency market’s leading decentralized oracles and Layer 2 arbitrums have formed another important partnership for the blockchain industry. The result was the release of Chainlink Automation on Arbitrum One. But what benefits does this bring to the cryptocurrency market?
First, we need to understand what Chainlink Automation is. This solution is designed to allow Web3 developers to automate key smart his contract functions in a decentralized way.
So you can make your contract more attractive while saving time and resources spent on development. Another notable difference is increased scaling speed.
With a focus on scalability, chainlink automation enables rapid identification and confirmation of transactions, even when the network is congested.
In addition to being on the market-leading altcoin blockchains, Chainlink Automation is on BNB Chain, Polygon, Avalanche, Fantom and recently arrived on Arbitrum. Highlights of this latest collaboration are the subject of this article.
chain link and arbitrum
As pointed out by Niki Ariyasinghe, Head of Blockchain Partnerships at Chainlink Labs, Arbitrum developers will be able to create highly scalable and low-cost smart contract applications in a decentralized way.
This is a big milestone for the altcoin as Arbitrum has been one of the fastest growing Layer 2 in recent months. As an example, major crypto market projects such as SushiSwap and Curve are already using the technology for scalability solutions.
Additionally, Arbitrum stood out during the collapse of FTX. TVL increased by 7.6% on December 15th.
These developments are done in Arbitrum as it is an Optimistic Rollups technology. This Layer 2 protocol is designed to scale the throughput associated with the Ethereum (ETH) base layer. This allows scaling smart contracts on the ETH network.
By combining Chainlink’s smart contract automation solution with Arbitrum, developers can create decentralized applications (dApps) with more functionality at lower cost.
This partnership is another great new feature that decentralized oracles bring to their holders with the advent of staking LINK tokens.
During 2022, Chainlink was one of the blockchain projects with the most partnerships, and should continue this trajectory next year. As an example, at the end of November, Oracle made 12 integrations of his 5 Chainlink services on 4 different networks (BNB Chain, Ethereum, Optimism and Polygon).
The partnership between Chainlink and interbank messaging system SWIFT was a positive milestone for Chainlink in 2022. This collaboration will allow decentralized oracles to work together with proofs of concept to help businesses transact on the blockchain.
Since smart contracts by themselves cannot retrieve data from outside the chain, a decentralized oracle is required, making Chainlink the primary name for this solution.
LINK could be a major highlight of 2023, as reported by U.Today. This is because there is more real data entering the blockchain and a lot of demand for tokenization by companies in this sector.
Meanwhile, rollup solutions like Arbitrum are showing investor interest. This is because there is a great need for cheaper, more efficient and faster blockchain development, a virtue not yet seen in Ethereum.
Ethereum 2.0 is not yet on the market, but there is a growing movement for greater scalability without losing the security of the main network of smart contracts.
Arbitrum is designed to enhance ETH’s smart contract functionality for efficiency and cost savings, as well as adding privacy features to these contracts. Investors and users of blockchain contracts therefore feel more secure in their negotiations.
U.Today also said that projects looking to grow in this space could become one of the main options for investors when the surge arrives in 2023, with Arbitrum standing out alongside Polygon (MATIC). I emphasized that it fits as an option.