In an ambitious move aimed at bolstering smart contract security, Coinbase Cloud is set to run a node on Chainlink, a decentralized finance (DeFi) oracle provider. Notably, Coinbase Cloud already operates nodes on prominent networks such as Aptos, Ethereum, Flow, and Solana.
Established on Ethereum in 2019, Chainlink works as a bridge, transferring off-chain data to various blockchains including BNB Chain, Avalanche, and Polygon. Oracles like Chainlink serve as the gateway for DeFi protocols to access the essential data that enables smart contract execution. Given the more than $74 billion in total value locked in DeFi, the role of oracles is absolutely vital.
Coinbase, in a public statement, stressed the importance of "timely, reliable and accurate data" for the realization of Web3 as the new norm. The company is also uniquely equipped to run a Chainlink oracle node, leveraging its "multi-cloud" and "multi-region" infrastructure to support competitive uptime and seamless data request handling.
Kai Zhao, Group Product Manager at Coinbase, underlined the company's commitment to the security and reliability of smart contracts through its involvement with Chainlink's Decentralized Oracle Network. He emphasized, "We believe on-chain is the next online, and we look forward to working with Chainlink to further this future."
The San Francisco-based crypto exchange now joins the ranks of other notable Chainlink node operators, including Amazon Web Services and T-Systems Multimedia Solutions, a Deutsche Telekom subsidiary.
Coinbase has also just unveiled its zero trading fee subscription service, Coinbase One, adding to an exciting week of developments for the company.
