Chainlink, a major player in the field of providing real-world data to blockchains, announced on Thursday that Coinbase Cloud will be joining its network as a node operator. This collaboration is set to strengthen its so-called oracle network by enhancing capacity and security. Node operators like Coinbase Cloud play a vital role in monitoring blockchains for data requests like stock prices and temperature data, retrieving off-chain data, and delivering it to smart contracts that issued the request.
Other notable names that serve as Chainlink node operators include Swisscom, Deutsche Telekom, and news provider Associated Press. Chainlink has been performing exceptionally well, as evidenced by its 974 data feeds and $7.8 trillion worth of transactions facilitated since the beginning of 2022. The addition of Coinbase Cloud will only further accelerate this trend, as it brings “extensive experience, robust infrastructure, and commitment to security,” said William Reilly, the Global Head of CeFi, Sales & Strategy at Chainlink Labs.
While the partnership adds significant value to Chainlink, there’s a light twist of skepticism that stems from the implications of this collaboration on centralization. With major corporations like Coinbase Cloud, Swisscom, and Deutsche Telekom serving as node operators, one might argue that these large entities have the potential to wield considerable influence over the network, deviating from the decentralized vision of blockchain.
However, it is essential to consider the benefits of bringing established, experienced companies with solid infrastructure on board. These players ensure that the security and reliability aspects of the network are met to the highest standards, which is essential for the smooth functioning of any decentralized system. It’s a balancing act between decentralization and the need for reliable infrastructure that has to be maintained.
Ultimately, the Chainlink and Coinbase Cloud partnership revolves around the question of whether enhancing the capacity and security of the oracle network could come at the cost of moving further away from the decentralized ethos of
Source: Coindesk
