Coinbase Cloud will use its global infrastructure and experience in managing blockchain data to strengthen the security and reliability of the Chainlink blockchain oracle network.
The United States-based cloud service cryptocurrency exchange will act as a new node operator in the Chainlink network in a partnership set to promote decentralization in the Web3 ecosystem.
The Coinbase Cloud infrastructure already serves many leading blockchains, including Ethereum, Solana, Algorand and Aptos. Chainlink node operators are essential to the network and are responsible for connecting smart contracts to different blockchains with data and systems.
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Chainlink creates a bridge between Web2 and Web3 by searching, formatting and sending data to smart contracts. A prime example is Chainlink’s provision of decentralized price feeds, securing an estimated $22 billion in value locked in decentralized finance (DeFi) protocols, including Synthetix, Aave, Compound and dYdX.
Coinbase Cloud team product manager Kai Zhao emphasized the importance of node operators throughout the cryptocurrency ecosystem, which ensure the security and reliability of smart contracts:
“By building decentralized Oracles, we are helping to create a more decentralized and trustworthy future for blockchain technology. We believe that on-chain is the next online, and we look forward to working with Chainlink to keep it coming.
Chainlink Labs global head of centralized finance, sales and strategy, William Reilly, added that the latest node operator will add experience and strong infrastructure to the oracle network, which will benefit a wide range of products, Web3 services and applications:
“Theirs [Coinbase Cloud] The participation will undoubtedly contribute to the development of decentralized applications, further pushing the blockchain industry to new heights.
Coinbase has signaled its intention to become a central pillar of the wider Web3 ecosystem by 2021, with Coinbase chief product officer Surojit Chatterjee highlighting his ambition to be the Amazon Web Services of the crypto industry.
Coinbase Cloud is at the heart of this venture, with its suite of products powering many services across the ecosystem. The service emerged from Coinbase’s acquisition of blockchain infrastructure provider Bison Trails in early 2021.
Coinbase Cloud’s Node platform allows users to create and manage Web3 applications, while the company also launched its own Ethereum layer-2 network called Base in February 2022.
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