Why ChainLink is NOT the oracle of the future

What is ChainLink?

ChainLink is an oracle service that is currently operating on the Ethereum blockchain but is designed to be agnostic. Its mission is to provide an ecosystem where information from the outside world can be inputted into smart contracts on the blockchain in a decentralised way.

Use ChainLink in AlphaWallet iOS and Android

The problems with ChainLink

This leads me into the next section of the article. ChainLink has some big issues in fulfilling its vision to be an oracle for the blockchain ecosystem and they are explained below.

ChainLink inputs cannot be verified without trust

The inputs that come back from ChainLink nodes cannot be verified in a trust-less manner.

ChainLink has a large attack surface

Recently ChainLink was attacked by someone who spammed the network with requests. These requests also tricked the ChainLink nodes into paying exorbitant gas fees by minting Chi tokens. All up the attack cost ChainLink nodes 700 ETH in gas fees.

ChainLink’s reward and punishment model are decoupled

As explained above, ChainLink nodes provide inputs into the system upon request and provide collateral to compensate requestors for inaccurate information.

The alternative — the NEST protocol

The NEST protocol is a truly decentralised oracle that provides information for pricing pairs without the risk of manipulation from a third party.

You can use NEST in AlphaWallet

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store