In a pivotal move aimed at strengthening the robustness and security of the Chainlink blockchain oracle network, Coinbase Cloud has announced its collaboration as a fresh node operator. The alliance, coming from one of the leading U.S.-based cryptocurrency exchanges, is set to bolster the decentralization of the rapidly evolving Web3 ecosystem.
Having established its global infrastructure servicing a multitude of leading blockchains including Ethereum, Solana, Algorand, and Aptos, Coinbase Cloud’s foray into operating as a node in Chainlink’s network is an exciting development. This venture is critical as Chainlink node operators play an instrumental role in linking smart contracts on varying blockchains to data and systems.
Chainlink, acting as a conduit between Web2 and Web3, sources, formats, and delivers data to smart contracts. A clear illustration of this function is Chainlink’s decentralized price feeds, securing an impressive estimated value of $22 billion locked in various decentralized finance (DeFi) protocols such as Synthetix, Aave, Compound, and dYdX.
Coinbase Cloud group product manager, Kai Zhao, emphasized the significance of node operators in the cryptocurrency ecosystem, particularly in enhancing the reliability and security of smart contracts. "By building decentralized Oracles, we are helping to create a more decentralized and trustworthy future for blockchain technology. We believe on-chain is the next online, and we look forward to working with Chainlink to further this future," Zhao remarked.
William Reilly, Chainlink Labs' Global Head of Centralized Finance, Sales, and Strategy, echoed these sentiments, asserting that Coinbase Cloud’s participation would bring added experience and a sturdy infrastructure to the oracle network. This would positively impact a broad spectrum of Web3 products, services, and applications.
In 2021, Coinbase signaled its determination to become an integral part of the broader Web3 ecosystem. Surojit Chatterjee, Coinbase's Chief Product Officer, outlined the firm's ambition to emulate the success of Amazon Web Services in the crypto industry.
Coinbase Cloud, following Coinbase’s acquisition of blockchain infrastructure provider Bison Trails in early 2021, is at the heart of this ambition. The service's suite of products already powers numerous services across the ecosystem. Its Node platform allows users to create and manage Web3 applications. The company also launched its Ethereum layer-2 network, called Base, in February 2022, cementing its commitment to revolutionizing the crypto landscape.
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