Chronicle, a major oracle provider safeguarding more than $5 billion for MakerDAO and its ecosystem, has announced its expansion into other networks with the launch of the Chronicle Protocol. This new protocol will make oracles accessible across various networks, starting with Polygon zkEVM to serve its rapidly growing ecosystem. Additionally, this move sets the stage for integrating another key partner, Spark Protocol.
The Chronicle Protocol is designed to offer a significant advantage in terms of gas fees, estimated to be 60% lower than those charged by other providers. This is a crucial aspect, as low fees play a pivotal role in encouraging platform usage. Oracles represent one of the largest cost center’s for blockchain networks and DeFi (Decentralized Finance) protocols.
The Role of Oracles in Blockchain
Oracles, in the blockchain context, are services that fetch data from sources outside the blockchain itself. While blockchains are excellent for storing data immutably, they can’t independently verify the authenticity of external data. This is where Oracle networks come into play, as they aggregate data from multiple sources to provide reliable information for various blockchain-based services and products.
One standout feature of Chronicle is its transparency-focused approach. The users will have access to a dashboard that allows them to trace the source of any required data on-chain, enhancing data transparency. Chronicle will rely on data supplied by more than 22 node operators, including well-known entities such as Infura, Etherscan, Gnosis, Gitcoin, Argent, MakerDAO, and dYdX.
The Significance of Verifiable Oracles
Chronicle’s founder, Niklas Kunkel, emphasized the importance of verifiable oracles in the DeFi sector, stating, “Verifiable Oracles at scale are a critical innovation to ensure the integrity of DeFi.” Kunkel, who co-developed Ethereum’s first oracle in 2017 for creating SAI (the precursor to the U.S. dollar-pegged DAI stablecoins), highlighted Chronicle’s commitment to delivering secure, cost-efficient, and verifiable oracles. This move positions the Chronicle as a significant challenger in a space traditionally dominated by a single provider.
The Chronicle Protocol’s expansion beyond the MakerDAO ecosystem signifies a significant step forward in making reliable oracle services more accessible and cost-effective across various blockchain networks. This development opens up new possibilities for blockchain projects and DeFi platforms seeking efficient and transparent data solutions.