- The partnership will integrate decentralized oracles into the Ethereum Classic network.
- Oracles are useful when it comes to integrating blockchain with traditional payment systems.
Ethereum Classic Labs has announced its partnership with Chainlink (LINK) to bring decentralized oracles and external data to the Ethereum Classic blockchain. According to the announcement, Ethereum Classic (ETC) and Ethereum cannot natively interact with data that exists outside of their respective blockchains. However, platforms like Chainlink allow blockchains to access external data securely. Additionally, the service acts as a decentralized oracle by relying on independent data providers and node operators.
As a result of the collaboration, the data provided by Chainlink will be accurate, reliable and free from possible interference. This is beneficial for developers on Ethereum Classic and other blockchains. Chainlink said:
Oracles facilitate off-chain connectivity for smart contracts by reforming external connection points (APIs) so that two separate software applications become compatible and can exchange data with each other. These oracles can then pull data into the smart contracts and/or execute actions on external systems based on predefined instructions.
ETC Labs has not disclosed information about the kind of applications that it will develop with Chainlink. It does, however, suggest oracles are useful when it comes to integrating blockchain with traditional payment systems, market data, and Internet of Things (IoT)-based insurance data.
James Wo, Founder of ETC Labs said:
This extended functionality to off-chain environments substantially scales the number of use cases smart contract developers can create using Ethereum Classic and ultimately makes it easier and more seamless for developers to build on Ethereum Classic.