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Cardano’s new project’s foray into oracles different from Chainlink’s?

Photo of: Sangeetha Golchha
by Sangeetha Golchha

Back in 2019, Cardano was ranked as the most actively developed cryptocurrency project in 2019 according to the Santiment’s 2019 market report. Much ahead of its Goguen era mentioned on its roadmap to growth, Cardano (ADA) will get into data oracles taking an approach that will be diametrically opposite to that of Chain Link.

What is the Goguen era?

The Goguen era with smart contract integration is a big step to augment the capabilities of the Cardano network. Its Shelly era decentralized the basics and the core of the entire system, this era focuses on building newer abilities for building new DApps on its foundation. Goguen era work has been running parallel with Shelly. Once the work has been completed in accordance with its regulations users from both technical and non-technical backgrounds will be able to create smart contracts on the network. The era is the brain-child of Plutus which is a purpose-built smart contract language available for testing. This will bring the benefits of functional programming to smart contract creation. 

The first oracles will be built by partnering with EMURGO which is one of the companies in the Cardano ecosystem in association with Ergo. Notably, the first two oracles are garrisoned on Ergo which will provide price feeds for the two trading pairs: ADA/USD and ERG/USD.

The New Oracle Pool model

The newly formed idea will introduce what is called the Oracle Pools which will incentivize as well as disincentivize both good and bad behavior. Ergos core developer Alexander Chepurnoy mentioned that this idea includes a lot of major players of the DeFi industry that are donating funds to the oracle pools they believe will be useful. This way the data providers get compensated with the funds from the pool itself. In the future, the model also offers the data providers to stake funds as collateral. If the data provider to the oracle is seen providing poor quality data, which can hamper the prospects of the project, then the stake of the data provider can be rightfully slashed. Compared to Chainlink which used LINK token as a gas-like payment mechanism, this new model is a cryptocurrency skeptic. 

Cardano’s rumored integration with Chainlink?

Before this announcement, rumors were erupting in the circles when in a particular tweet of Charles Hoskinson, the founder of Cardano was talking with Chainalink’s co-founder Sergey Nazarov. A lot of curious followers were interested in the details of the conversation more so on the lines of expectation that Cardano would be integrating Chainlink’s oracles. 

Now, this was back in July and to date nothing official has been charted on the table. Cardano believes that there is no need to hurry as these oracles would be little use before the Goguen era. There is also sufficient time to test the infrastructure of the oracle that is developed by in-house developers. We have to wait and observe if Cardano will successfully rely on its own oracles or a chainlink integration is on the cards!