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Whitepaper 2.0

Chainlink Whitepaper 2.0

Abstract

In this whitepaper, we articulate a vision for the evolution of Chainlink beyond its initial conception in the original Chainlink whitepaper. We foresee an increasingly expansive role for oracle networks, one in which they complement and enhance existing and new blockchains by providing fast, reliable, and confidentiality-preserving universal connectivity and off-chain computation for smart contracts.

The foundation of our plan is what we call Decentralized Oracle Networks, or DONs for short. A DON is a network maintained by a committee of Chainlink nodes. It supports any of an unlimited range of oracle functions chosen for
deployment by the committee. A DON thus acts as a powerful abstraction layer, offering interfaces for smart contracts to extensive off-chain resources and highly efficient yet decentralized off-chain computing resources within the DON itself.

With DONs as a springboard, Chainlink plans to focus on advances in seven key areas:

• Hybrid smart contracts: Offering a powerful, general framework for augmenting existing smart contract capabilities by securely composing on-chain and off-chain computing resources into what we call hybrid smart contracts.

• Abstracting away complexity: Presenting developers and users with simple functionality eliminates the need for familiarity with complex underlying protocols and system boundaries.

• Scaling: Ensuring that oracle services achieve the latencies and throughputs demanded by high-performance decentralized systems.

• Confidentiality: Enabling next-generation systems that combine blockchains’ innate transparency with strong new confidentiality protections for sensitive data.

• Order-fairness for transactions: Supporting transaction sequencing in ways that are fair for end users and prevent front-running and other attacks by bots and exploitative miners.

• Trust-minimization: Creating a highly trustworthy layer of support for smart contracts and other oracle-dependent systems by means of decentralization, strong anchoring in high-security blockchains, cryptographic techniques, and cryptoeconomic guarantees.

• Incentive-based (cryptoeconomic) security: Rigorously designing and robustly deploying mechanisms that ensure nodes in DONs have strong economic incentives to behave reliably and correctly, even in the face of wellresourced adversaries.

We present preliminary and ongoing innovations by the Chainlink community in each of these areas, providing a picture of the broadening and increasingly
powerful capabilities planned for the Chainlink network

Download Chainlink Whitepaper 2.0!

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