Chainlink Off-Chain Reporting (OCR) Goes Live: Boosts Efficiency of Network

The popular oracle network Chainlink announced the launch of Chainlink Off-Chain Reporting (OCR) on February 24th, which is a highly anticipated upgrade that has been months in the making.

Chainlink claims that OCR will not only significantly improve the efficiency of the network’s data computing but it will also reduce costs by up to 90% to enable users to save in gas fees and boost adoption.

Gas costs have been the bane of Decentralized Finance (DeFi) platforms since 2020 due to high Ethereum gas prices and the difficulties that migrating to another network would imply.

The upgrade in Chainlink’s mainnet is expected to help alleviate these costs to some extent and improve the status of the DeFi niche. These costs have become prohibitive for many applications, and remove the utility of the platform for low-value applications.

According to the announcement, users will see a 10 times increase in the data that can be handled by smart contracts, which should allow new applications to emerge as new datasets become available.

The OCR update will also further decentralize the oracle network, increase the frequency of on-chain updates, improve the cost-efficiency of onboarding new nodes, reduce congestion on the chain, and reduce oracle latency.

The Future of Chainlink

Before this update, a great part of the computations realized by chainlink was taking place on-chain, which resulted in less scalability, lower efficiency, and higher computational resources being needed.

With this update, chainlink is transitioning toward an off-chain computation model in which the network will be able to function in situations where conditions are not optimal, creating a more scalable ecosystem.

Sergey Nazarov, Chainlink’s founder, said in an interview with media that the development team will be working on verifiable randomness, keeper functions, and fair sequencing, all of them with applications on the DeFi and gambling niches.

Verifiable randomness has been worked on by chainlink for…

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