Orchid collaborates with Chainlink to build USD bandwidth-pricing oraclesJun 16, 2020
Orchid is collaborating with Chainlink, a network of decentralized oracles, on two new tools that make it easier for Orchid users to determine the price of VPN bandwidth. Chainlink is widely considered the market leader in decentralized oracles, providing trusted price feeds to many leading DeFi applications such as Synthetix, Aave, and Nexus Mutual. Chainlink oracles allow blockchains to access information outside their networks (off-chain) in a highly secure manner, providing more meaningful data to on-chain applications while retaining their end-to-end security.
The first oracle -- already up and running -- is a OXT/USD price feed, giving users the ability to price VPN bandwidth in U.S. dollars. Chainlink's decentralized price oracle will help limit the distorting effect of short-term pricing volatility by smoothing moment-to-moment price fluctuations. This provides a more consistent and accurate understanding of the price of OXT than sampling the spot price at a given instant.
The second oracle -- currently in development -- aggregates information from Orchid providers to give users a better estimate of the cost of bandwidth. It will act as a "secret shopper" that samples bandwidth pricing from all the providers on Orchid, synthesizing the data into generalized pricing information for users. This will make it easier for people to estimate the price of services on the network.
Combined, the two oracles serve a joint function of letting people estimate the approximate cost of bandwidth on Orchid, both in OXT and U.S. dollars. The OXT/USD oracle allows people to understand OXT price movements relative to USD, while the second allows users to estimate how much their bandwidth is likely to cost. Together, they can be used to project how much service a given amount of USD is likely to purchase.
Chainlink oracle networks are powered by an aggregation of numerous independent node operators that source data from multiple independent data sources. This decentralized framework provides manipulation-resistant data with strong market coverage of all relevant sources.
"Chainlink's oracles provide valuable information that make the crypto space more accessible and easier to use," said Orchid Co-Founder and CEO Dr. Steven Waterhouse. "We're excited to collaborate on these two great projects, which improve the experience for Orchid users and help us bring Internet privacy to more people."
"We're excited to use Chainlink oracles to provide key off-chain data that helps ease the use of Orchid Network," states Daniel Kochis, Head of Business Development on Chainlink. "By aggregating data using a decentralized oracle network, Chainlink is able to provide robust market coverage for pricing bandwidth in a manipulation resistant manner."
Orchid takes a new approach to digital privacy with the first peer-to-peer, incentivized privacy network. On the network, anyone can buy and sell bandwidth using the Orchid digital currency (OXT). Users can browse privately and access content without being limited by their geography. With its decentralized design, multi-hop architecture, and Open Source ethos, Orchid offers users unprecedented digital privacy in a trustless context.
Chainlink is a decentralized oracle network that helps resolve connectivity issues with smart contracts, enabling users to build blockchain-based smart contracts that securely access off-chain data feeds, web APIs, and traditional bank payments. By doing so, Chainlink transforms the role that smart contracts can play in a vast number of sectors, including financial services, insurance and supply chain. Chainlink provides highly secure and reliable oracles to large enterprises Google, Oracle, and SWIFT) and leading smart contract development teams such as Polkadot/Substrate, Synthetix, Loopring, Aave, OpenLaw, Conflux, and many others. Learn more by visiting the Chainlink website or follow us on Twitter or Reddit.
If you enjoyed this blog, subscribe here for privacy news, commentary, and product updates from Orchid.