As inferred from the report, oracles enable smart contracts to interact with data and systems from outside their native blockchain (off-chain). This interaction allows interchain communication and gives smart contracts the enablement to interact with traditional non-blockchain systems.
But as for centralized oracles, there are more open avenues for failure. Icon pointed out that it found ChainLink feat for the task while to bring off-chain connectivity to ICON DApps, with the highest security standards.
ChainLink is a well-known decentralized oracle network that gives room for developers to customize how their smart contracts interact with anything off-chain by adopting different levels of decentralization, oracle selection, and data aggregation.
Once this integration is complete, anybody will have the ability to bring real-world data into their blockchain with the help of a secure and decentralized oracle network made available by ChainLink.
According to ICON, this integration with ChainLink promises great benefits to the ICON ecosystem. Below are what to expect once the process of integration is complete;
- ChainLink could simply serve to bring real-world professional sports into NTFs that represent sports players.
- ChainLink could be used to bring pricing from traditional markets into decentralized financial products.
- ChainLink could be used to include data from other blockchains in the users’ ICON app.
According to the report, the initial implementation of the ICON will be an ICX/USD pricing oracle that is applicable in any ICON DApp.
The integration is also expected to allow ICON DApps to build financial products and market places based on the USD equivalent of ICX.
The capability of any decentralized application leveraging off-chain data and systems knows no bound. ICON concluded by inviting people to build using the two great technologies, ICON and ChainLink.