Coinbase Cloud connects to the Chainlink oracle network to improve the reliability of smart contracts

Coinbase Cloud will leverage its global infrastructure and experience in managing blockchain data to bolster the security and reliability of the Chainlink blockchain oracle network.

The cloud service from the US-based cryptocurrency exchange will operate as a new node operator on the Chainlink network in a partnership to enhance the decentralization of the Web3 ecosystem.

Coinbase Cloud infrastructure already powers several leading blockchains, including Ethereum, Solana, Algorand, and Aptos. Chainlink node operators are an integral part of the network and are responsible for connecting smart contracts on various blockchains to data and systems.

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Chainlink bridges Web2 and Web3 by sourcing, formatting and sending data to smart contracts. A good example is Chainlink’s provision of decentralized price feeds, which locks an estimated $22 billion in value across decentralized finance (DeFi) protocols, including Synthetix, Aave, Compound, and dYdX.

Kai Zhao, product manager of the Coinbase Cloud group, emphasized the importance of node operators in the cryptocurrency ecosystem, ensuring the security and reliability of smart contracts:

“By building decentralized Oracles, we are helping to create a more decentralized and reliable future for blockchain technology. We believe on-chain is next online and we look forward to working with Chainlink to advance this future.”

William Reilly, Chainlink Labs global head of centralized finance, sales and strategy, added that the latest node operator would add experience and robust infrastructure to the oracle network, benefiting from a wide range of Web3 products, services and applications:

“Their [Coinbase Cloud] engagement will undoubtedly contribute to the advancement of decentralized applications, further propelling the blockchain industry to new heights.”

Coinbase has declared its intention to become a central pillar in the wider Web3 ecosystem by 2021, with Coinbase chief product officer Surojit Chatterjee highlighting its ambition to become the Amazon Web Services of the crypto industry.

Coinbase Cloud is at the center of this gamble, and its suite of products powers a number of services across the ecosystem. The service was born out of Coinbase’s acquisition of Bison Trails, which launched a blockchain infrastructure provider in early 2021.

Coinbase Cloud’s Node platform allows users to create and manage Web3 applications, while the company also launched its own Ethereum layer-2 network called Base in February 2022.

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