Chainlink has announced its plans to upgrade to a groundbreaking network that’s fast, reliable and efficient. This technology is known as Off-Chain Reporting (OCR) that is said to collect on-chain data 10 times faster than its predecessor. This will help to advance DeFi product transactions and services provided. Though the OCR was just recently announced, it has been running for quite some time now.
OCR Supplies 10 times Data
Since Chainlink began operations in 2019, it has been making efforts towards becoming a better service provider.
Chainlink Co-Founder, Sergey Nazarov stated that the “DeFi Summer” – a current rise in total values entrenched in the DeFi app that begins in July 2020 – links strongly with Chainlink and supplies more information. This is because most of these DeFi protocols are greatly reliant on external data. However, the availability of such data is also greatly reliant on Chainlink.
Nazarov highlighted the fact that since most DeFi apps are dependent on the services of Chainlink, it is important for them to upgrade the technologies behind these services so as to better serve their clients.
OCR enables the mode of data collection from various sources on the Oracle Network to be slightly different as it seeks to minimize the cost of gas while also ensuring maximal returns.
What Makes OCR Better?
Formerly, the collection of values from a singular signal was performed along a chain. The confirmed data values from smart-contracts of Ethereum and other blockchains are then presented through the Chainlink nodes. While this approach is actually very reliable, its major demerit is the high cost of gas involved as each node must channel resources to put out information.
The new design, however, substitutes chain aggregation for consensus circles outside the chain. This causes the aggregated data to flow into the blockchain. The smart contract then verifies if that version of the data is approved by the quorum nodes.