Chainlink Debuts SCALE To Lower Network Operation Costs
- Chainlink Labs has recently announced the launch of “holistic and win-win economic model for both blockchains and the Chainlink Network,” which will be called SCALE.
- The new initiative will allow blockchains and layer-2 networks to boost smart contract innovation by helping to cover the oracle services’ operating costs for a period of time.
- SCALE is a component of the Chainlink Economics 2.0 program, which aims to increase network value capture and promote secure crypto-economic growth.
Leading secure and reliable open-source oracle solutions provider Chainlink Labs has recently announced the launch of a “holistic and win-win economic model for both blockchains and the Chainlink Network” called SCALE, in its efforts to ease Oracle Network operating costs.
According to an announcement made by the company on September 28, the new initiative will allow blockchains and layer-2 networks to boost smart contract innovation. Chainlink aims to achieve this by helping to cover the oracle services’ operating costs for a period of time.
“As L1 & L2 user bases expand, fees from dApps can eventually cover the full on-chain costs of Chainlink oracle nodes – driving long-term viability across different ecosystems,”
The company states.
Chainlink Economics 2.0 Program
With a Transaction Value Enabled (TVE) of $6.18 trillion as of the start of 2022, Chainlink has established itself as the industry standard oracle infrastructure for a wide range of trust-minimized services. Many early Web3 inventions, including DeFi money markets, fair mint NFTs, and parametric crop insurance, were built on Oracle-powered transactions.
SCALE is a component of the Chainlink Economics 2.0 program, which aims to increase network value capture and promote secure crypto-economic growth. Early in June, the roadmap for the data oracle ecosystem was made public. It highlighted long-term objectives and financial viability.
Interestingly, Avalanche, Metis, Moonbeam, and Moonriver are just a few of the on-chain ecosystems that have offered their support for Chainlink SCALE, which will enable it to cover some oracle network operational expenses and advance research and development.
Oracle operating costs may start to be paid for by dApp user fees as the system develops rather than by the ecosystem as a whole.
According to Chainlink co-founder Sergey Nazarov, SCALE will “help rapidly accelerate the growth of blockchain ecosystems while putting in place a holistic economic model that is viable for the long-term success of blockchains, dApps, and the Chainlink ecosystem.”
The release stated that SCALE’s ultimate goal is to increase the economic value of each Web3 player, including users, oracle service providers, blockchains, and dApps.In related news, Chainlink and SWIFT have teamed together on a proof-of-concept initiative to enable traditional finance companies to conduct transactions across blockchain networks. The project takes advantage of the Cross-Chain Interoperability Protocol (CCIP) of the network to enable SWIFT messages to direct on-chain token transfers.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
