Chainlink, a blockchain data provider, has introduced “Data Streams,” a new product designed to reduce network latency.
The company announced on Monday (October 2) in a press release that this offering is now available for early access on the Layer 2 Arbitrum platform. According to Chainlink, Chainlink Data Streams combine low-latency market data with automated execution “to unlock a new generation of extremely fast and user-friendly synthetic product offerings.” Low-latency market data refers to financial market data distributed without significant delays.
The press release states that this product uses a “pull-based” data oracle solution, where “high-frequency market data is continuously provided off-chain.” Oracle reports are created for each block, and users can access them off-chain, then verify them through on-chain transactions. This is different from a push-based solution where oracles actively provide data to smart contracts at various intervals.
Using a pull-based system helps reduce latency, which is the time it takes for data to move from one point to another. Latency is a common issue affecting distributed networks because messages need to be transmitted to nodes, often causing delays in completing and synchronizing transactions.
“Data Streams not only enable DeFi protocols to support execution speed and competitive user experiences with centralized exchanges but also do not compromise on the core values of Web3, which are fairness, transparency, and decentralization,” said Chainlink co-founder Sergey Nazarov in the press release.
On the same day, the company also announced new decentralized computing capabilities with Functions Beta and Automation 2.0 on the mainnet.
Chainlink Functions will allow developers to connect decentralized applications with any application programming interface (API), acting as an intermediary layer for data transmission between systems. Meanwhile, Chainlink Functions enable the automation of high-value tasks with costs reduced by 1/10, saving up to 90% on gas fees.
This development signifies Chainlink’s commitment to enhancing the capabilities of blockchain technology, particularly in the areas of data oracles and decentralized computing.