In order to decrease network latency, Chainlink, a blockchain data oracle supplier, has introduced “Data Streams,” a new offering.According to a news statement issued by the company on Monday, the product has officially reached early access on layer 2 platform Arbitrum.Chainlink Data Streams mixes automated execution with low latency market data “to unlock a new generation of ultra-fast and user-friendly derivatives products,” according to the business.When referring to financial market data that is transmitted instantly, we use the term low latency market data.
According to the press announcement, the system uses a “pull-based” data oracle approach in which “high frequency market data is continuously made available off-chain.” Users can retrieve Oracle reports off-chain, validate them with their on-chain transaction, and then re-access them because they are generated every block. This contrasts with the push-based model, in which oracles automatically and periodically provide data to smart contracts.
The latency of updates is decreased by using a pull-based approach, which shortens the time it takes for a data packet to move between two points.Since messages must be propagated to nodes in distributed networks, latency is a prevalent issue that frequently results in delays in transaction synchronization and finalization.
“Data Streams not only enables DeFi (decentralized finance) protocols to support execution speeds and a user experience that rival centralized exchanges, but to do so without compromising on the core Web3 value of fair, transparent, and decentralized infrastructure,” Chainlink co-founder Sergey Nazarov said in the release.
Additionally on Monday, the business unveiled new decentralized computing capabilities on the primary network with Functions Beta and Automation 2.0.Developers will be able to connect decentralized applications to any application programming interface (API), a middle layer that handles data exchanges between systems, using Chainlink Functions.According to Chainlink’s press release, Chainlink Functions enables high-value operations to be automated at a tenth of the cost, saving up to 90% on petrol.
“With all these new updates, we are creating a standard for how all developers can connect heterogenous Web3 components with any existing system they can think about, move data and value seamlessly across multiple chain ecosystem, and create new verifiable applications,” Kemal El Moujahid, chief product officer at Chainlink Labs, said in a statement provided by a spokesperson. Chainlink Labs is the primary developer contributing to Chainlink.