- Drawing on his experience at Maker and collaborating with CentrifugeChronicle Labs is exploring solutions to provide reliable, accurate and tamper-proof information about real-world assets (RWA) to blockchains, ensuring data security, regulatory compliance and fostering trust in the DeFi sector.
- Scribe from Chronicle Labs promises increased security and efficient data transfer. Its innovative approach led to over 60% reduction in gas consumption during testing, making it a crucial advancement in the Oracle domain and significantly reducing the cost of Oracle’s operations.
Oracles play a crucial role in on-chain data transmission, underpinning the decentralized finance (DeFi) revolution. Yet despite their importance in DeFi, the growth of Oracle technology has remained relatively static.
The effectiveness of on-chain Oracles, especially on platforms like Ethereum, is constrained. This limitation impacts the potential of DeFi. Many Oracles are not easily accessible, often hampered by cost or protocol team availability, and also tend to lack true transparency and decentralization, two essential elements of DeFi principles. Chronicle Protocolin this context, presents a new solution to these widespread chain problems.
In this investor’s guide, we’ll cover what Oracles are, as well as the history of the Chonique protocol and how it seeks to spark the next generation of DeFi growth with its launch.
First of all, what are Oracles?
Blockchain Oracles function as secure gateways, connecting blockchains to the outside world and different blockchains to each other. They transfer the data, ensuring its validity before letting it pass. Although Oracles do not generate the data, they act as intermediaries, confirming its authenticity and passing it from its origin to the end user. This data may include details about prizes, voting results or sporting event results.
Without these on-chain Oracles, blockchain applications would become isolated islands, limited to data from their own network. Such limitations would restrict the potential applications of blockchain technology. Therefore, on-chain Oracles play a crucial role in the Web3 framework, acting as a catalyst for all the wonderfully creative ideas in this industry.
In the context of blockchain and DeFi, Real-World Assets (“RWA”) oracles are a type of Oracle that provides information about real-world assets (like real estate, stocks, commodities , etc.) to the blockchain. They ensure that there is a reliable, accurate and tamper-proof way to reflect the value and status of real-world assets in the blockchain environment. The data they provide can be used for a variety of purposes, including loan guarantees, asset tokenization, or any other DeFi applications involving real-world assets.
Chronicle Labs is currently exploring an institutional-grade infrastructure layer for RWAs with Centrifuge, a leader in the tokenization of real-world assets. Chronicle Oracles’ profitability, security and auditability upgrades uniquely position Chronicle to develop the infrastructure needed to effectively connect RWA to on-chain capital and vice versa.
The Value-Driven Oracle of MakerDAO
Chronicle Protocol aspires to become the first open and authentic data chronicler. Its foundations are verifiability, accessibility and affordability. Along with its inherent scalability, integration, and security, these values drive the protocol forward.
Chronic, having its roots in MakerDAO The Oracle team invented the first Oracle on Ethereum to facilitate the introduction of SAI in 2017. Four years later, with the support of MakerDAO, the team branched out to create a new brand with a mission to make the protocol accessible to a wider audience: thus, a chronicle protocol has been established.
While Chronicle Oracles has saved over $10 billion for Maker since 2017, their innovative technology has until now only been available to Maker and its ecosystem.
Chronicle Labs reveals the future of Oracles: meet Scribe
Chronicle Protocol was developed to be blockchain agnostic, implementable on any chain, and accessible through its on-chain interface, which is plug-and-play with users who have previously used Chainlink or Maker Oracles. For the first time, Chronicle not only supports MakerDAO, but also extends its protocol to the broader blockchain ecosystem, starting with Polygon zkEVM through a collaboration with Polygon Labs.
This was accomplished by Chronicle Labs developing Scribe, a next-generation proprietary Oracle cryptographic primitive, to address the high costs of on-chain calculations for Oracle updates.
Early testing suggests that Scribe will reduce gas consumption by over 60% compared to a previous iteration, and an even greater gas savings compared to Chainlink, positioning it as a potential game-changer for the industry.
To create cost-effective Oracles, Chronicle Labs focused on call data on L1 blockchains, which is cost-effective; however, L2s introduced a new challenge with affordable computations but more expensive call data. Developing single solutions for L1 and L2 could have minimized costs, but it would have added complexity. The search for a unified approach suitable for both platforms resulted in Scribe and its optimistic-schnorr hybrid design.
This hybrid system allows multiple parties to co-sign a message, improving security while compressing call data. They adopted an optimistic model on L1, in which a proposed price, if not contested for a certain period, becomes final. In a decentralized way, the Scribe framework allows any relay to submit data to the Oracle contract. If validated, the data, including the optimistic price, is stored.
If a price update seems questionable, a fraud proof can be triggered which checks the signatures and, if found fraudulent, removes the price and bans the erroneous feed. The caller of the fraud proof will also receive all Oracle ETH as a reward, opening a new MEV opportunity for researchers and ensuring an effective and resilient response to malicious acts.
Scribe strengthens Chronicle’s competitive advantage, but the team hasn’t neglected user experience; they are reshaping how DeFi interacts with trusted and verifiable data. Users will be free to quickly subscribe and unsubscribe to Oracles as needed, with on-chain payment and subscription features. They can easily query the latest data in the DeFi sphere, trace data back to its source, verify its validity, and effortlessly integrate with any blockchain, all through a decentralized on-chain dashboard called The Chronicle .
Charting the Future: Chronicle Labs’ Definitive Impact on DeFi
In the rapidly evolving landscape of decentralized finance (DeFi), Chronicle Protocol is emerging as a beacon of innovation, addressing long-standing challenges related to on-chain Oracles. By combining verifiability, scalability, and adaptability, Chronicle Labs is not only showcasing solutions, but actively shaping the future of DeFi. With groundbreaking initiatives like Scribe, Chronicle is setting new standards in how we approach and use on-chain data, breaking down many of the current barriers that exist for Dapps and on-chain protocols.
As we stand on the precipice of a decentralized revolution, Chronicle Labs showcases the transformative power of technology, vision and collaboration. It’s clear that the progress Chronicle makes today will resonate with the DeFi community for years to come.
To explore The Chronicle and get a first-hand look at how Oracles work, try check some price data for yourself! Stay up to date with the team’s journey by following them on X and join the project Community Discord.
This content is sponsored by Chronicle Laboratories
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